Back to today’s briefing

Story perspectives

Labour Weighs Scrapping Child Benefit Cap Amid Inflation Crisis

9/26/2025

26 5 Full Breakdown

Center

Labour Considers Benefits

Labour is considering scrapping the two-child benefit cap, with announcements expected at next week's party conference.
Easing the cap would cost about £3 billion annually amid proposed £30 billion in tax increases.
Institute for Fiscal Studies (IFS) says defence spending could rise to 3% of GDP, affecting welfare funding.
The UK has the highest inflation in the G7, complicating recovery.

Right

Reeves Faces Tax Pressure

Rachel Reeves faces pressure to raise income tax to address the UK's public finances.
The Institute of Directors, representing nearly 20,000 members, shifts to tax hikes.
Anna Leach, chief economist, says a broad tax burden is needed.
The Treasury faces a £20–£50 billion shortfall.
The Resolution Foundation proposes moving 2p from National Insurance to income tax, generating £6 billion.

1 of 2

Labour Considers Benefits

Labour is considering scrapping the two-child benefit cap, with announcements expected at next week's party conference.
Easing the cap would cost about £3 billion annually amid proposed £30 billion in tax increases.
Institute for Fiscal Studies (IFS) says defence spending could rise to 3% of GDP, affecting welfare funding.
The UK has the highest inflation in the G7, complicating recovery.

1 / 2