Labour has delayed a flagship plan designed to cut child poverty until the autumn, in a move that could leave tens of thousands on the brink.
Just weeks after coming to power, ministers said they would consider ditching the “cruel” two-child benefit cap in a bid to head off a backbench Labour revolt.
But the overall strategy in which the policy was expected to be included has now been pushed back, despite fears of another rebellion on welfare cuts within weeks.
But the new timings, designed to coincide with the budget, have raised some hopes ministers could push ahead and abolish the two-child cap, amid reports Sir Keir Starmer is in favour of the move, while his chief of staff Morgan McSweeney is less convinced.
Both are under increasing pressure from Labour backbenchers on the issue.
The benefits cap affects more than 1.6 million children by limiting welfare payments to the first two children in most families.
New costings released recently by the Child Poverty Action Group (CPAG) show another 109 more children are pulled into poverty by the policy every day.
The number affected will continue to increase until 2035 – when the first children born under the turn 18.
The charity says that scrapping the cap would be the most cost-effective way to lift kids out of poverty.
It it were dumped, 350,000 children would be lifted from poverty at a stroke, while the depth of the poverty experienced by another 800,000 children would be reduced.
As well as pressure over the cap, No 10 is still facing a potential rebellion from Labour MPs next month when tough welfare cuts, including to disability payments, are due to be voted on in the House of Commons, despite his partial U-turn on winter fuel payments earlier this week.
Downing Street has insisted the government is taking a “comprehensive approach” to child poverty, including rolling out free breakfast clubs, increasing the number of affordable homes, and raising the minimum wage.
Lord John Bird, an anti-poverty campaigner and founder of the Big Issue, criticised news of the delay and said ministers had “just kicked the issue of child poverty into the long grass”.
He added: “The impact of their inaction will be grave. It is shameful that child poverty is forecast to not fall, but rise significantly, to 31.5 per cent of children under this Labour government.
“We need action now, not in six months or a year’s time. I will relentlessly pursue my intervention of adding child poverty targets to the Children’s Wellbeing and Schools Bill with the vigour that the 4.3 million children living in poverty in our country deserve.”
But Helen Barnard, from the Trussell Trust, which provides food banks, said: “This may be good news. Better a delayed child poverty strategy with measures to really protect children… than one hitting the deadline but falling short on substance.”
A government spokesperson said: “The government is determined to bring down child poverty.
“We’ve already expanded free breakfast clubs, introduced a cap on the cost of school uniforms, increased the national minimum wage for those on the lowest incomes, uprated benefits in April and supported 700,000 of the poorest families by introducing a Fair Repayment Rate on Universal Credit deductions.
“We will publish an ambitious child poverty strategy later this year to ensure we deliver fully-funded measures that tackle the structural and root causes of child poverty across the country.”
