Neil Kinnock, who called for the two-child benefit limit to be scrapped, says the Chancellor’s decision to remove the policy is a ‘fine way of combatting child poverty and good for the economy’
Rachel Reeves’s Budget with measures to fight child poverty shows Labour is reversing Tory injustice and damage, Neil Kinnock has said.
The former Labour leader told The Mirror the decision to axe the cruel two-child benefit limit was a “fine way of combatting child poverty for the good of the economy”.
In the summer Lord Kinnock – who led the party between 1983 and 1992 – joined Gordon Brown’s call for the Tory-era policy to be scrapped to lift kids out of poverty. He said at the time that after 14 years the Conservatives left the country in a state that would “make Charles Dickens furious” with “intolerable” hardship.
After the Budget announcement to scrap the two-child benefit limit from April 2026, Lord Kinnock told The Mirror: “It’s an excellent decision – a fine way of combatting child poverty and good for the economy. Abolishing the cap – together with the strong, practical commitment to the NHS, sustained focus on public investment, and new revenue from those with high incomes and high price assets – shows that Labour is gradually reversing Tory inefficiency, damage and injustice.
“The Tory harm was so great that renewal cannot be fast – but it is certain. That provides the vital sense of positive direction that the country needs.”
READ MORE: Every Budget bombshell you need to know – major benefit change and tax riseREAD MORE: Huge cheers as Rachel Reeves abolishes DWP two-child benefit limit
His comments came as Keir Starmer and Chancellor Ms Reeves both issued a passionate defence of Wednesday’s Budget with measures funded by a £26billion tax raid. The PM said on Thursday the Budget “asked everybody to make a contribution” to protect public services and help cash-strapped families with the cost of living.
On Wednesday the government said it would extend the freeze in income tax thresholds – a move she has previously said would hurt working people. It will result in 780,000 more basic-rate, 920,000 more higher-rate, and 4,000 more additional-rate income tax payers in 2029/30 as earnings rise over time.
Asked if he’d breached Labour’s tax manifesto promises, Mr Starmer said: “We made a number of commitments in our manifesto which we have kept, but I accept that… we have asked everybody to make a contribution. I tell your viewers precisely why that is: to make sure that we can protect our NHS, which needs to be there for them and their families when they need it. Everybody understands that.”
He said he was “not going to apologise for lifting half a million children out of poverty”, as he hit back at claims the measure was announced to appease restive Labour MPs. Asked whether he was axing the two-child limit for universal credit to shore up his own position, Sir Keir told Sky News: “It’s impossible to argue that this is a position that has been adopted just in the last few weeks. It is my long-standing ambition. I’m proud to be the Prime Minister who has done more on child poverty than any prime minister ever.”
He also pointed to the “massive impact” the “abhorrent” Tory policy had had on the health of hundreds of thousands of children. “I’m not going to apologise for lifting half a million children out of poverty,” Mr Starmer said.
In a series of interviews Ms Reeves also said she attempt to keep tax increases to “”an absolute minimum on ordinary working people”. She told broadcasters she was “incredibly proud” of the measures unveiled on Wednesday – including axing the cruel two-child benefit limit to lift 450,000 kids out of poverty.
Hitting back at critics she said: “You’re not going to write my obituary today.” And she dismissed Tory criticism of raising taxes to fund a “Benefits Street budget”, pointing out that 60% of the families that will gain from the abolition of the two-child benefit limit have parents in work.
It came as the left-leaning think-tank the Resolution Foundation said poorer working age families were the biggest winners – while rich pensioners fared worst. Economists found the poorest families gained £90 a year on average, while the richest half will lose around £1,000. But poorer pensioners lost an average of £220, while wealthier OAPs will be £680 worse off under Ms Reeves’ measures.
Analysts also found that by refusing to raise income tax by 1p – as was hinted in the build-up to the Budget – people who earn less than £35,000 will be worse off. But this would have been a clear breach of Labour’s election manifesto. The think-tank found that three in five families who will benefit from the two-child benefit limit include at least one person in work. Overall, 560,000 families will gain an average of £5,310 in 2029-30, as a result of the cap – introduced by the Tories in 2017 – being torn up.
But it also warned the decade continues to look “really tough” for living standards, as most of the “pain” from Ms Reeves’ Budget will not be felt until 2028.