Keir Starmer and Rachel Reeves are at war over the two-child benefit cap (Image: Getty)

       Panicking Sir Keir Starmer plans another u-turn as Labour fears about the rise of Reform grow, this time by ending the two-child benefit cap. But it puts him on collision course with Chancellor Rachel Reeves, who is understood to be worried about the ￡3.5 billion cost.

       The Prime Minister last year suspended seven Labour MPs after they voted against the cap, which prevents parents from claiming child tax credit or universal credit for more than two children. But he has now told cabinet ministers that he wants to scrap the cap himself and has asked the Treasury to identify ways to fund the plan, it ws reported last night.

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       101 Comments

       Nigel Farage says Reform is now party of 'working people' with huge benefits announcement

       1178 Comments

       Rachel Reeves Winter Fuel U-turn sparks hopes of wider reversal to benefit cuts

       Comments

       Nigel Farge vows to reinstate winter fuel allowance and scrap two child benefit cap

       220 Comments

       Keir Starmer set to restore winter fuel payment - but how many pensioners will get it?

       99 Comments

       Keir Starmer issued 'hell to pay' warning if Labour doesn't fix key policy

       250 Comments

       DWP changes to affect new claimants this year - full list of benefits impacted

       Comments

       Pensioners could be forced to wait 12 months for Keir Starmer's winter fuel U-turn

       73 Comments

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       Kemi Badenoch slams 'desperate' Keir Starmer for 'shafting country' on winter fuel U-turn

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       Martin Lewis pushes for Winter Fuel Payment to pensioners on these council tax bands

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       I'm an expert - Rachel Reeves will have to give all pensioners winter fuel money back

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       Starmer has been PM for 320 days and he's already made 13 humiliating U-turns

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       1178 Comments

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       Comments

       Nigel Farge vows to reinstate winter fuel allowance and scrap two child benefit cap

       220 Comments

       Keir Starmer set to restore winter fuel payment - but how many pensioners will get it?

       99 Comments

       Keir Starmer issued 'hell to pay' warning if Labour doesn't fix key policy

       250 Comments

       DWP changes to affect new claimants this year - full list of benefits impacted

       Comments

       Pensioners could be forced to wait 12 months for Keir Starmer's winter fuel U-turn

       73 Comments

       Full-time workers ‘claiming thousands in benefits' with tax loophole

       12 Comments

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       76 Comments

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       72 Comments

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       28 Comments

       Labour's winter fuel u-turn shows OAPs were right to feel 'betrayed'

       2 Comments

       Martin Lewis pushes for Winter Fuel Payment to pensioners on these council tax bands

       11 Comments

       I'm an expert - Rachel Reeves will have to give all pensioners winter fuel money back

       375 Comments

       Starmer has been PM for 320 days and he's already made 13 humiliating U-turns

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       Liz Kendall defies Labour critics to press ahead with 'killer' cuts

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       It follows his u-turn over winter fuel allowance, when he announced changes to the means-testing policy introduced by Chancellor Rachel Reeves.

       But the changes of policy are sparking anger among Labour MPs, many of whom are pleased to see the end of benefit cuts but are asking why they were ordered to defend the controversial policies for so long only to see them abandoned by the party leadership.

       It follows Labour’s huge defeat in local elections on May 1, when the party also lost the Runcorn and Helsby by-election to Reform.

       Axing the two-child cap will cost ￡3.5bn a year. Work and Pensions Secretary Liz Kendall and Education Secretary Bridget Phillipson have been pushing for the change.

       Ms Reeves is worried about the cost but the Prime Minister is determined to take her on, the Observer reports. It reports a source said: “Keir is becoming more assertive with the Treasury. You can see that with the winter fuel allowance. He is more determined to drive through the things he wants.”

       Options include a new tax on gambling companies.

       Anti-poverty charity the Resolution Foundation has warned that the two-child cap must be scrapped to stop child poverty reaching record levels. It has warned the number of children below the poverty line is set to rise to an all-time high of 4.6 million.

       Meanwhile the Government is also scrabbling to find a way to get Winter Fuel Allowance to more pensioners before winter.

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       Simply increasing the threshold will be difficult to implement and Whitehall’s ageing computer systems may be unable to introduce the change before the cold weather returns.

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       DWP changes to affect new claimants this year - full list of benefits impacted

       Comments

       Pensioners could be forced to wait 12 months for Keir Starmer's winter fuel U-turn

       73 Comments

       Full-time workers ‘claiming thousands in benefits' with tax loophole

       12 Comments

       Kemi Badenoch slams 'desperate' Keir Starmer for 'shafting country' on winter fuel U-turn

       76 Comments

       Angela Rayner demands middle class families lose key benefit in leaked memo

       72 Comments

       Liz Kendall doubles down on welfare cuts despite threat of huge Labour rebellion

       28 Comments

       Labour's winter fuel u-turn shows OAPs were right to feel 'betrayed'

       2 Comments

       Martin Lewis pushes for Winter Fuel Payment to pensioners on these council tax bands

       11 Comments

       I'm an expert - Rachel Reeves will have to give all pensioners winter fuel money back

       375 Comments

       Starmer has been PM for 320 days and he's already made 13 humiliating U-turns

       23 Comments

       Liz Kendall defies Labour critics to press ahead with 'killer' cuts

       58 Comments

       LBC's Ben Kentish gets into blistering live row with MP: 'Contradicting yourself!'

       2 Comments

       Keir Starmer confirms huge winter fuel payment U-turn in bombshell PMQs clash

       1404 Comments

       Sir Keir Starmer faces new fiasco after winter fuel payments U-turn

       72 Comments

       Angela Rayner declares war on Rachel Reeves in Sky interview demanding benefit U-turns

       101 Comments

       Nigel Farage says Reform is now party of 'working people' with huge benefits announcement

       1177 Comments

       Rachel Reeves Winter Fuel U-turn sparks hopes of wider reversal to benefit cuts

       Comments

       Nigel Farge vows to reinstate winter fuel allowance and scrap two child benefit cap

       220 Comments

       Keir Starmer set to restore winter fuel payment - but how many pensioners will get it?

       99 Comments

       Keir Starmer issued 'hell to pay' warning if Labour doesn't fix key policy

       250 Comments

       DWP changes to affect new claimants this year - full list of benefits impacted

       Comments

       Pensioners could be forced to wait 12 months for Keir Starmer's winter fuel U-turn

       73 Comments

       Full-time workers ‘claiming thousands in benefits' with tax loophole

       12 Comments

       Kemi Badenoch slams 'desperate' Keir Starmer for 'shafting country' on winter fuel U-turn

       76 Comments

       Angela Rayner demands middle class families lose key benefit in leaked memo

       72 Comments

       Liz Kendall doubles down on welfare cuts despite threat of huge Labour rebellion

       28 Comments

       Labour's winter fuel u-turn shows OAPs were right to feel 'betrayed'

       2 Comments

       Martin Lewis pushes for Winter Fuel Payment to pensioners on these council tax bands

       11 Comments

       I'm an expert - Rachel Reeves will have to give all pensioners winter fuel money back

       375 Comments

       Starmer has been PM for 320 days and he's already made 13 humiliating U-turns

       23 Comments

       Liz Kendall defies Labour critics to press ahead with 'killer' cuts

       58 Comments

       LBC's Ben Kentish gets into blistering live row with MP: 'Contradicting yourself!'

       2 Comments

       Keir Starmer confirms huge winter fuel payment U-turn in bombshell PMQs clash

       1404 Comments

       Sir Keir Starmer faces new fiasco after winter fuel payments U-turn

       72 Comments

       Angela Rayner declares war on Rachel Reeves in Sky interview demanding benefit U-turns

       101 Comments

       Nigel Farage says Reform is now party of 'working people' with huge benefits announcement

       1177 Comments

       Rachel Reeves Winter Fuel U-turn sparks hopes of wider reversal to benefit cuts

       Comments

       Nigel Farge vows to reinstate winter fuel allowance and scrap two child benefit cap

       220 Comments

       Keir Starmer set to restore winter fuel payment - but how many pensioners will get it?

       99 Comments

       Keir Starmer issued 'hell to pay' warning if Labour doesn't fix key policy

       250 Comments

       DWP changes to affect new claimants this year - full list of benefits impacted

       Comments

       Pensioners could be forced to wait 12 months for Keir Starmer's winter fuel U-turn

       73 Comments

       Full-time workers ‘claiming thousands in benefits' with tax loophole

       12 Comments

       Kemi Badenoch slams 'desperate' Keir Starmer for 'shafting country' on winter fuel U-turn

       76 Comments

       Angela Rayner demands middle class families lose key benefit in leaked memo

       72 Comments

       Liz Kendall doubles down on welfare cuts despite threat of huge Labour rebellion

       28 Comments

       Labour's winter fuel u-turn shows OAPs were right to feel 'betrayed'

       2 Comments

       Options include restoring the allowance of up to ￡300 for every pensioner and then clawing money back from the richest through income tax.

       Labour MPs are also stepping up calls for a u-turn over cuts to Personal Independence Payments, which are paid to people with disabilities.

       The Government has announced it is removing Personal Independence Payments for 800,000 people, including 370,00 current claimants and 430,000 people who will no longer be eligible in the future, each losing an average of ￡4,500.