Labour readmits McDonnell and Begum after benefit cap rebellion

LONDON — Labour has readmitted former shadow chancellor John McDonnell and MP Apsana Begum to the parliamentary Labour party after a year‑long suspension for voting against the government on the two‑child benefit cap. They were among seven left‑wing MPs who, days after Labour’s 2024 landslide triumph, backed an SNP motion to scrap the cap — a policy that prevents almost all families from claiming Universal Credit or child tax credit for a third child or any subsequent child born after April 2017.

McDonnell and Begum’s suspensions were lifted on Friday following discussions with Labour’s new chief whip, Jonathan Reynolds, and the party has not publicly explained the reasoning behind the decision to restore the whip. The move comes seven months after the whip was restored to Richard Burgon, Ian Byrne, Imran Hussain and Rebecca Long‑Bailey for their rebellion against the government on the same issue. Zarah Sultana, the seventh MP from that group, resigned from Labour last month to help set up a new party with ex‑leader Jeremy Corbyn.

The two‑child cap, introduced by the Conservative government, bars households on Universal Credit or the child tax credit from receiving payments for a third or subsequent child born after April 2017. Its supporters argue it helps control welfare spending, while critics say it deepens child poverty and punishes larger families. In the wake of Labour’s 2024 election win, the party signaled it would not commit to abolishing the cap without a clearly funded plan. The Resolution Foundation, a think tank, estimated that scrapping the cap would cost about £3.5 billion and could lift around 470,000 children out of poverty.

The party’s stance on the cap has evolved in fits and starts in the months since the election. While a wholesale reversal would require funding commitments that Labour has not yet provided, the leadership has signaled openness to discussing changes to the policy as part of broader anti‑poverty measures. Last week, Education Secretary Bridget Phillipson, who is seeking the deputy leadership, said scrapping the two‑child limit was “on the table,” marking one of the clearest indications yet that ministers could consider removing the cap if the party wins another term. Phillipson stressed that poverty reduction is a central aim and that the party would square policy options with available resources.

Her remarks come as Labour’s annual conference looms in Liverpool, where the party is expected to press its anti‑poverty agenda and outline how it would address welfare reform. Observers say the cap will be a persistent talking point during debates about how far the party is willing to go to ease hardship for families living on Universal Credit and other benefits.

The government’s approach to child poverty remains under scrutiny. A long‑delayed Child Poverty Strategy, promised for spring, has not yet been published, a development that has frustrated opposition parties and advocates alike. While ministers have faced pressure to outline a concrete plan, there is little consensus on the speed or scope of potential reforms, including whether to repeal or modify the two‑child cap.

On the political right, Reform UK has pledged to scrap the cap if it gains power, arguing that doing so would reduce child poverty, though the Conservatives have questioned whether such a move would be economically credible. In Labour circles, the debate has been framed by a tension between fiscal responsibility and the party’s commitment to supporting low‑income families. Some lawmakers who supported the SNP motion to scrap the cap last autumn argued for a more expansive welfare approach, while others warned against policy shift without a credible funding plan.

The labour leadership’s decision to reinstate McDonnell and Begum follows months of internal recalibration as the party seeks to unify its left flank with a broader electoral strategy. The return of the two MPs signals a willingness to embrace a more openly anti‑austerity stance on social welfare, even as the party remains cautious about fully reversing Conservative‑era reforms that shape benefit rules today.

As the conference approaches, party officials are expected to present a refreshed platform that foregrounds poverty reduction and social security, while balancing concerns about public finances. The question for Labour remains how far it will go in delivering policy changes that would directly affect the two‑child cap, and how it would finance any such measures without destabilizing the broader fiscal framework.

For now, the whip’s restoration for McDonnell and Begum, along with the earlier returns for Burgon, Byrne, Hussain and Long‑Bailey, underscores a broader shift in Labour’s approach to internal dissent and policy review. It also highlights how the party’s stance on welfare and family benefits will feature prominently as MPs prepare for a policy‑driven cycle of debate and campaigning ahead of the next general election.

Ultimately, Labour’s handling of the two‑child cap and related welfare questions will be watched closely not only by voters in the United Kingdom but also by international observers who monitor how major Western parties adapt social policy to political pressures, donor expectations, and evolving economic realities. While the United States debates its own family and welfare programs, the policy debates in Westminster continue to resonate with a broader discussion about the balance between support for families and fiscal sustainability in modern democracies.