Portrait of Keir Starmer
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Keir Starmer on Disability Benefits

U-turned on benefit cap (moderate)

Keir Starmer's views and actions concerning welfare, including disability benefits, have evolved during his time as Prime Minister. Initially, the government cited financial reasons for declining to abolish the two-child benefit cap, a policy introduced by the earlier coalition government.

This reluctance led to the withdrawal of the party whip from seven Labour MPs who supported an amendment to scrap the cap, arguing it would lift hundreds of thousands of children out of poverty. Despite this initial resistance, Starmer's government performed a U-turn in November 2025, abolishing the two-child benefit cap as part of that month’s fiscal budget.

In a separate measure concerning the broader welfare system, Starmer's government passed the Universal Credit Bill in July 2025, which increased the standard rate of Universal Credit. However, this bill also included measures that reduce the health-related aspect of universal credit for certain claimants, balancing the overall package.

Context

As Prime Minister, Keir Starmer's government inherited responsibility for all existing UK social security and disability benefit systems, including those under Universal Credit. The management of these benefits is intrinsically linked to his stated domestic priorities of tackling child poverty and ensuring economic stability.

Timeline

  1. Starmer's government initially declined to scrap the two-child benefit cap, citing financial constraints, leading to Labour MPs being disciplined for supporting a vote to remove it.
  2. The government passed the Universal Credit Bill, which saw an increase to the standard rate but contained cuts to the health-related element for some claimants.
  3. Starmer performed a policy U-turn, abolishing the two-child benefit cap in the fiscal budget following sustained pressure.

Actions Taken

  1. Parliamentary Discipline
    Withdrew the whip from seven Labour MPs for supporting an SNP amendment to scrap the two-child benefit cap.
  2. Policy Initiative
    Launched a Child Poverty Taskforce involving expert officials to work on supporting children living in poverty.
  3. Legislation
    Passed the Universal Credit Bill, which increased the standard rate of Universal Credit but reduced the health-related aspect for certain claimants.
  4. Policy Reversal
    Announced the abolition of the two-child benefit cap in the fiscal budget.

Related Positions

  • Child Poverty The debate over the two-child benefit cap directly relates to the government's stated goal of tackling child poverty through initiatives like the Child Poverty Taskforce.
  • Universal Credit The government's passage of the Universal Credit Bill signifies direct involvement in reforming the core system under which many disability benefits are delivered.

Criticism

Stephen Flynn (SNP Westminster Leader) and supporting Labour MPs

Criticised the government for maintaining the two-child benefit cap, arguing its scrapping would immediately lift 300,000 children out of poverty.

General Public/Voters

Some voters expressed objection to attempted benefit reductions as part of Labour's Universal Credit Bill in July 2025, contributing to Starmer's low approval ratings.