Phillipson signals two-child cap could be scrapped as Labour deputy leadership contest intensifies

Education secretary Bridget Phillipson said scrapping the two-child benefit cap is on the table as she campaigns for Labour's deputy leadership, signaling a potential policy shift if she wins. She has framed child poverty as a core issue in her bid, aiming to head off a challenge from rival Lucy Powell as the party weighs welfare plans ahead of an online membership vote.

Phillipson, speaking to the BBC, said tackling poverty brought her into politics and that she would fight on the issue day, in, day out if she won. She added that everything is on the table, and that includes removing the two-child limit. She also described the policy as "spiteful" in an interview with the Guardian, arguing it had punished and pushed children into hardship. Phillipson is co-chair of the government's child poverty taskforce and has highlighted efforts to extend free school meals as part of Labour's welfare agenda.

Powell has urged Labour to be clearer about when it would scrap the policy and has argued it is the single biggest step the party could take to address child poverty. She has attacked what she calls unforced errors by the government, including its botched attempt to cut disability benefits, which has been put on ice pending a review, and cuts to winter fuel payments that were partially reversed. Powell, who was sacked as Commons leader in the reshuffle following Angela Rayner's resignation as deputy leader, has said she would not automatically seek a cabinet post if she becomes deputy leader, instead emphasizing a backbench and activist-focused role.

The two-child cap, introduced under the Conservatives, prevents households on universal or child tax credit from receiving payments for a third or subsequent child born after April 2017. The policy has become a focal point in Labour's welfare debate ahead of an autumn strategy on poverty measures. The Resolution Foundation has estimated that axing the cap would cost about £3.5 billion and would lift about 470,000 children out of poverty. Reform UK has pledged to scrap the limit if it wins power, though its position is not universally viewed as economically credible. Keir Starmer has spoken in the past of wanting to ditch the cap when economic conditions allow, without providing a timetable.

Powell has suggested her deputy leadership bid could allow greater freedom for backbenchers and activists, and she has dismissed suggestions that Labour members might back her primarily to signal support for a later leadership replacement for Sir Keir Starmer. The contest, conducted online among party members, has made welfare policy a central battleground, with candidates proposing different routes to reduce poverty while balancing fiscal considerations. Phillipson, meanwhile, has used her platform to emphasize her role in government on child poverty and to defend campaigns that expanded support such as free school meals.

As the political stakes rise, the policy debate over the two-child cap mirrors broader tensions within Labour about how aggressively to challenge Conservative welfare reforms and how quickly to translate pledge into policy. The online deputy leadership vote will determine which candidate will guide Labour's welfare and poverty strategy moving into the next general election cycle. The party has signaled that its autumn policy framework will be closely watched for concrete steps on child poverty and family support, with the two-child cap at the center of the conversation.

The debate over whether to lift or scrap the cap remains unresolved, with supporters arguing the measure compounds poverty for larger families and critics warning of the fiscal and political costs of a potential reversal. As Labour members prepare to vote online, both Phillipson and Powell are positioning themselves to shape the party's welfare platform if they are tasked with leading the policy charge after the deputy leadership contest.