The Labour party is caught up in a row over the two child benefit cap – and if it should be scrapped.

Prime minister Keir Starmer has said it will remain in place for now, but some of the party’s MPs recently rebelled against this decision – and are now suspended.

FactCheck takes a look.

What is the two-child benefit cap?

The two-child benefit cap was first announced by the Conservatives in 2015 and came into force in 2017.

The cap means that although most parents can claim a payment from the government for their first and second child, they can’t make claims for any further children.

At the time it was announced, the Conservative party said it made the system fairer for taxpayers and ensured that households on benefits faced the same financial choices regarding having children as those not on benefits.

Parents can currently claim £287.92 for each of their first two children – but not for any other children after this.

Parents, where either partner earns upwards of £60,000, can still claim the benefit – but they would have to pay tax on it.

Last year, more than one million families claimed the child tax credit, with 23 per cent of them in work.

But 1.6 million children are impacted by the cap as there are more than two children in their household.

How much would it cost to axe the two-child limit?

The Resolution Foundation has said abolishing the two-child limit would cost the government between £2.5bn and £3.6bn in 2024/25.

But the other side of the argument is that the move would take half a million children out of relative poverty – that’s according to an estimate by charity Save the Children.

What is Labour’s stance on this and why is there an ongoing row?

Labour has long been divided over the two-child limit, but now-PM, Keir Starmer, ruled out scrapping the cap in 2023, and said the party would “have to make the tough decisions” if they got into power.

The party has now said that it would scrap the benefit – but only when fiscal conditions allow for this, which doesn’t look like anytime soon.

But on the final day of debate on the King’s Speech on 23 July, the Scottish National Party put forward an amendment which called for the cap to be axed, gaining the support of the Greens, Plaid Cymru and some independent MPs, including former Labour leader Jeremy Corbyn.

Seven Labour MPs rebelled against party orders and voted for the amendment, with the prime minister suspending their whip for six months as a result.

Having the whip suspended means the MP remains an MP and hasn’t lost their constituency, but they are considered independent (without a party), unless the whip is restored. It may be temporary or permanent.

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