Scottish Labour oppose UK leader Starmer on two-child benefit cap

Scottish Labour say they will continue to oppose the two-child benefit cap despite UK leader Sir Keir Starmer insisting he would not scrap it.

The cap blocks applicants from claiming Universal Credit or Child Tax Credit for a third child.

Sir Keir has said he would not commit extra money to benefits without first growing the economy.

But both the Scottish Labour leader and his deputy say scrapping the two-child cap is vital to tackling poverty.

Sir Keir's refusal to commit to abolishing the two-child limit will be challenged at a meeting of the party's policy body this weekend.

Scottish Labour leader Anas Sarwar has previously described the policy as "heinous".

He has now been backed by his deputy, Jackie Baillie, who said it damages families and "exacerbates poverty".

She told the BBC's Good Morning Scotland programme: "We don't know the financial mess that the Tories have left the country in. We need to be responsible about the pledges we make.

"But I am very clear, and Scottish Labour is very clear, we remain opposed to the two-child benefit cap and I will do everything in my power to encourage my party to do exactly that.

"The party has agreed to reform Universal Credit, and I would expect the two-child benefit cap to be part of that process."

The Child Poverty Action Group in Scotland estimates the cost of abolishing the two-child limit across the UK would be £1.3bn.

That would lift 250,000 children out of poverty - up to 15,000 of them in Scotland - the group says.

The cap has already affected over 80,000 children in Scotland and 1.5m across UK.

The estimated cost of fully mitigating the policy in Scotland would be around £85m.

Sir Keir Starmer had previously supported scrapping the cap before he was Labour leader.

But he told the BBC's Sunday with Laura Kuenssberg programme he would not promise to spend more money ahead of the next general election, which is due next year.

He said his party in government would always invest in public services but to do this it needed to grow the economy.

"That has to start with responsible economics and it has to be coupled with reform," he added.

Sir Keir is facing a growing backlash from across his party over the issue.

Labour's National Policy Forum, brings together trade union representatives, party members and the shadow cabinet, will meet held behind closed doors in Nottingham this weekend.

The meeting is an important staging post in drawing up the party's next manifesto.

The SNP's Westminster leader described UK Labour's stance on the two-child cap as "utterly shameful".

Stephen Flynn told Good Morning Scotland: "What Keir Starmer, who is the real power within the Labour party and not Anas Sarwar, has said is that if his government comes to power next year then they are not going to offer change to the people of Scotland.

"What they are going to do is continue with Tory austerity measures - George Osborne's austerity measures - which across the UK are putting 250,000 children into poverty."

In an interview with the Daily Record, Mr Sarwar said he completely accepted "we have to create economic stability" and that a future Labour government "must get growth back in our economy".

"But that growth then has to be used to alleviate poverty and to create opportunity", the Scottish Labour leader said. "And one way we can do that is removing the two-child limit and reforming Universal Credit."

But that led Mr Flynn to accuse him of trying to "con" people into thinking he opposed the two-child cap.

He said: "Anas Sarwar appears to be rubbing some Brasso on his neck this morning, because he is trying to con the people of Scotland into believing he is against the policy when just yesterday on the television he was saying he backs Keir Starmer's position."

In many ways this sums up the Starmer Project. He wants Labour to look responsible and pragmatic, ready for government.

But it rubs up against some in his party who worry it comes at the expense of more traditional left-wing principles.

That's particularly an issue in Scotland, where Labour is chiefly looking to take votes from the SNP - for which you need a different offering compared to trying to take votes off the Conservatives in England.

It also rather leaves some colleagues hanging - like Jackie Baillie, who once said the two-child cap "reminds me of Communist China", but must now defend the idea of a UK Labour government retaining it.

Sir Keir is clearly thinking about the broader electorate. One poll this week suggested that many voters support his position.

But he will need to pay heed to his party too - as some of his predecessors found, divided parties seldom win elections.