Prime Minister Keir Starmer faced sharp questioning in the House of Commons on Wednesday 4th of June from Conservative leader Kemi Badenoch over two contentious welfare policies: the two-child benefit cap and changes to winter fuel payments. The exchanges marked a pivotal moment for the Labour government, which continues to tread carefully between fiscal discipline and social reform amid rising public concern over poverty and cost-of-living pressures.
Badenoch Targets Starmer’s Ambiguity on Welfare Reform
During Prime Minister’s Questions (PMQs), Badenoch challenged Starmer to clarify his position on the two-child limit on Universal Credit and Child Tax Credit, a measure introduced in 2017 by the Conservative government. The policy restricts financial support to the first two children in a household, a cap that critics argue disproportionately harms low-income families and deepens child poverty.
“Will the Prime Minister commit to scrapping this cruel and discriminatory policy, or does Labour intend to keep it?” Badenoch asked, echoing criticism from campaigners and backbench Labour MPs.
In response, Starmer avoided a direct commitment, instead reiterating his party’s broader pledge to tackle child poverty. “We are working on a comprehensive strategy to reduce child poverty in this country,” he said, adding that a dedicated child poverty taskforce would be announced, with findings expected in the autumn. “We will set out our plans in full, but they will be based on evidence and fiscal responsibility” (The Times).
Child Poverty Action Group estimates that over 400,000 children could be lifted out of poverty if the cap were scrapped (CPAG).
Despite the pressure, Starmer remains cautious. With the economy still recovering and international markets watching Labour’s first full fiscal year, any shift in social spending is being filtered through the lens of budget credibility.
Winter Fuel Payments U-turn Sparks Further Questions
Badenoch’s second line of attack focused on Labour’s decision to partially reverse its own cut to winter fuel payments, a move originally introduced as part of a broader overhaul of universal benefits shortly after Labour came to power in 2024. The government had initially announced that only the poorest pensioners would be eligible for the winter fuel allowance, drawing criticism for exposing millions of older citizens to energy insecurity.
However Chancellor Rachel Reeves’ announcement that more pensioners will receive winter fuel payments this year marked a clear departure from Labour’s original policy. Only one caveat; the extent of the reversal remains opaque.
“So on behalf of the pensioners who wants to know, can the Prime Minister be clear with us here and now, how many of the 10 million people who lost their winter fuel payments will get it back?” asked Kemi Banadoch. Sir Keir didn’t answer the question, only saying the government will “look again at the eligibility for winter fuel and of course we’ll set out how we pay for it”.
As of now, no exact numbers have been provided on how many of the 10 million who lost out will see their payments restored. Pensions Minister Torsten Bell later clarified that there is “no intention” to return to universal payments, a position that could prove controversial in traditionally Labour-leaning constituencies with high numbers of retirees (Morning Star).
Data projections
Based on the analysis of the Households Below Average Income (HBAI) statistics for the UK, focusing on After Housing Costs (AHC) figures, a nuanced picture of child poverty emerges: while overall long-term trends from 1994 to 2023 show significant improvements, particularly in absolute terms, recent years indicate a concerning stagnation or slight reversal of this progress. Specifically, the percentage of children in relative low income (AHC) saw a slight decrease from 32% in 1994 to 31% in 2023, yet this masks an upward trend since reaching a low point around 2010, suggesting a recent worsening after a period of improvement. Even more notably, absolute child poverty (AHC) witnessed a substantial decline from 51% in 1994 to 26% in 2023, marking a significant long-term success in real terms; however, similar to relative poverty, the very recent trend shows signs of plateauing or a slight increase from its lowest points, indicating that the strong progress observed in earlier decades has slowed considerably. Therefore, while overall the situation is better than three decades ago, the lack of sustained improvement and the recent slight worsening in both relative and absolute child poverty rates (AHC) highlight ongoing challenges in the fight against child poverty in the UK.
Labour’s Balancing Act
The exchanges on Wednesday captured Labour’s central challenge: managing fiscal credibility while maintaining social justice credentials. Both the two-child cap and the winter fuel payment changes reflect deeper ideological fault lines within the party and the electorate it seeks to represent. A government elected on promises of fairness and reform now finds itself constrained by the same financial realities that have shaped Conservative policymaking for over a decade.
But as Badenoch and other opposition figures seek to exploit Labour’s caution, the Prime Minister may be forced to offer more concrete policy answers – particularly ahead of the autumn budget, where many of these issues are expected to come to a head.
Until then, Labour walks a tightrope: promising reform, but delivering restraint.
References
- Sky News: More pensioners to get winter fuel payments
- The Times: Starmer sidesteps child benefit cap debate
- The Guardian Liveblog: PMQs – June 4, 2025
- Morning Star: More pensioners will receive winter fuel payments – Reeves
- CPAG: Charities press Chancellor for Spending Review commitment to scrap two-child limit
- HBAI statistics: https://www.gov.uk/government/collections/households-below-average-income-hbai–2
- HBAI summary results (ODS format): https://assets.publishing.service.gov.uk/media/67e2b5915698d84e39cfdac6/HBAI_summary_results.ods