Labour's axing of the two-child benefit cap will see working families foot the bill for a £6,400 benefit boost for unemployed households, according to the Conservatives. Analysis by the party claims that lifting the measure will see a family with two unemployed adults and three children receive the extra income, with at least £1 billion every year to 186,000 unemployed households.
The cap, introduced in 2017, restricts universal or child tax credit to the first two children in most households. The Tories warned that working families will be left picking up the tab as the limit is lifted tomorrow at an estimated cost of £3.5 billion per year.
Conservative leader Kemi Badenoch said: “While working people struggle with rising fuel costs and food prices, Keir Starmer is giving another handout to those on benefits.
“The Conservatives believe in fairness and that those on welfare should have to make the same choices about their family as those who aren't. That's why we would reinstate the two-child cap and use the savings to bolster our Armed Forces.
“In an increasingly dangerous world, we have to prioritize, and my plans will ensure a stronger economy and a stronger country.”
Shadow Chancellor Sir Mel Stride said the move “raises serious questions about fairness”.
He added: “Many hardworking households will wonder why, when their own living standards are under pressure, the government is choosing to prioritize higher welfare spending.
“This is Rachel Reeves' benefits payday – paid for by working families.”
Chancellor Rachel Reeves announced plans to abolish the two-child benefit cap, which has been criticized by child poverty campaigners, last year following intense pressure from Labor backbenchers.
The Conservatives and Reform UK have both vowed to reimpose it if they win power at the next general election.
But Labor disputed the Tory analysis, with a spokesperson saying: “The Tories have been caught red-handed fiddling the figures, lying about disabled people and lying about how the benefits system works. They should be ashamed of their record on child poverty and ashamed that they can't tell the truth.
“Their bogus numbers take a family with two disabled adults and pretend they are simply unemployed. They know exactly what they're doing: counting disability benefits as if everyone gets them, to make their numbers bigger.
“Labour is scrapping the two-child limit to lift half a million children out of poverty. Most families who will benefit from this are in work. The Tories know this perfectly well, and the fact that they have to lie about it proves it.”