The Conservative leader insisted “we cannot afford to scrap it”, adding: “Nigel Farage and Keir Starmer are just saying things to please people.”
It comes as Sir Keir is also said to be privately considering scrapping the two-child benefit cap in bid to reduce child poverty, in a move that would cost the Treasury £3.5bn a year.
Such a move would mark the second major welfare U-turn after last week’s reversal on the winter fuel allowance policy. With Labour MPs threatening to rebel over a wide-ranging package of welfare reforms, the Observer has reported that the prime minister has made it clear to his Cabinet that he wants the cap to be abolished.
It came as Angela Rayner piled pressure on Sir Keir by suggesting details on when winter fuel payments could be restored to more pensioners could come to light within a few weeks.
The deputy prime minister indicated the Spending Review by chancellor Rachel Reeves on 11 June could be when an announcement is made on winter fuel.
Tory leader says winter fuel payments should not be given to millionaires
The Conservative leader said winter fuel payments should be protected for vulnerable people but withdrawn from millionaires.
Speaking on Sunday Morning With Trevor Phillips on Sky News, Kemi Badenoch said: “We voted against the winter fuel allowance – we said he should not have done that.”
“Millionaires should not get the winter fuel payment – that is not right. But we shouldn’t be taking them away from those who end up below the breadline.”
She said the Government must focus on a system that ensures targeted support: “What we need is a system that makes sure that all of those people who need it, get it.”
Holly Evans25 May 2025 09:47
Badenoch says Starmer is 'not honest' and damaging economy
Pressed by Phillips on whether limiting child-related benefits to two children is fair, Badenoch replied: “I think that is right, that is fair.”
She said: “Nigel Farage and Keir Starmer are just saying things to people – they’re not doing what is right.
“I am saying what is the right thing to do – it may not be popular, but it is absolutely the right thing to do.”
“As far as I can tell, that’s where Keir Starmer was about a year ago. He removed the whip from seven MPs who voted against it. Now he’s changing his mind.
“This is a Prime Minister who is not honest, who doesn’t have a plan, is confused, is making everything worse and is damaging our economy – and this will just be the latest in a long line of decisions.”
“The worse our economy gets, the poorer we will become – and then we won’t be able to afford any benefits at all.”
Holly Evans25 May 2025 09:42
Angela Rayner blasts leadership rumours: I don’t want to be leader of the Labour Party
Sir Keir’s deputy said she will ‘never’ be leader of the party, amid growing speculation she could launch a leadership challenge
Holly Evans25 May 2025 09:38
Kemi Badenoch says scrapping two-child benefit would 'send wrong signal'
Kemi Badenoch has defended the two-child benefit cap, insisting it is “the right thing to do”.
Appearing on Sunday Morning With Trevor Phillips on Sky News, the Conservative leader said the policy had been introduced in “better economic times than we have now” and scrapping it would send “the wrong signal”.
“The child benefit cap is reasonable,” she said. “It is the right thing to do and we want people to know that we can manage the economy properly – that’s what the Government should be doing. I don’t think it is right to scrap it.”
Conservative Party leader Kemi Badenoch has defended the two-child benefit cap (Chris Radburn/PA) (PA Wire)
Ms Badenoch said the UK’s welfare bill was unsustainable, warning that the Government is spending more than £100 billion a year on debt interest.
“We are borrowing to pay welfare,” she said. “We are now spending more on paying off the interest on debt than we are on education. This is not sustainable.”
“I’m going to tell the truth and be the person who is being honest with the public. People know that the two-child benefit (cap) is there for a good reason and there are many people out there who will say, if you can’t afford to have lots of children then you shouldn’t do so. You shouldn’t have to rely on benefits to have your children – but we do have a humane system.”
Holly Evans25 May 2025 09:33
Keir Starmer considering scrapping two child benefit cap
Sir Keir Starmer is said to be considering scrapping the two child benefit cap, in what would be his second U-turn following months of pressure over Labour’s approach to benefits.
While Downing Street has previously said there is “no one silver bullet to tackle child poverty” when pressed on whether the government would scrap the cap, sources have now told The Observer that the prime minister thinks ending it is the right thing to do.
It comes less than a week after the prime minister announced plans to row back on last year’s controversial winter fuel cut, telling the Commons he would look at increasing the thresholds at which people start to receive the benefit.
Sir Keir’s reported shift in position on the two child benefit cap was revealed just hours after it emerged that Nigel Farage is preparing to outflank him on benefits by committing to scrapping the cap and fully reinstating the winter fuel payment – piling pressure on the prime minister to do the same.
Holly Evans25 May 2025 09:28
Inside Labour plot to oust Keir Starmer as PM is given 12 months to turn things around
The response to what appeared to be a planted question from a loyal backbencher during Prime Minister’s Questions certainly wrong-footed Tory leader Kemi Badenoch and meant that Labour MPs left the chamber with smiles on their faces.
But the shock move came as Sir Keir was having to act to shore up power with MPs, senior party figures and trade unionists who have been openly plotting to remove him.
Read the special report from our political editor David Maddox here:
This week’s dramatic winter fuel U-turn has not been enough to stop speculation about the future of Starmer as leader, as political editor David Maddox found out
Holly Evans25 May 2025 09:24
Nigel Farage 'doesn't know' how to pay for winter fuel payments, Rayner says
Nigel Farage does not know how he would pay for scrapping the two-child benefit cap and restoring the winter fuel payment to all pensioners, Angela Rayner has suggested.
Asked about the Reform UK leader’s claims on both welfare measures, the Deputy Prime Minister told Sky News’s Sunday Morning With Trevor Phillips: “Nigel Farage comes up with lots of ideas, they’re not necessarily good ideas, and he doesn’t know how he’s going to pay for them.”
Lifting the cap “might be a signal, but it’s not a silver bullet”, Ms Rayner added.
She told Sky News: “It’s not going to alleviate the levels of child poverty. There is a number of factors: people’s wages not increasing, their employment being insecure, their cost-of-living crisis that we face, their bills going up, and their housing costs have gone up.
“So it’s not one particular element that is going to safeguard people from the poverty we’ve seen after 14 years of the Conservatives.
“But I do know that having a good job that pays well allows you to open doors and opportunities for you to have a family and to do well in life.”
Holly Evans25 May 2025 09:22
Angela Rayner rules out being prime minister
Angela Rayner said she was “absolutely not” behind a leaked memo, and ruled out being prime minister.
The deputy prime minister was asked by Sky News’s Sunday Morning With Trevor Phillips to dispel suggestions she may have been behind the leak of a memo to the chancellor, in order to grow support for a future leadership bid.
She replied: “Yeah, absolutely not, and I don’t want to be leader of the Labour Party.”
Pressed on this, she added: “No, I’m very happy and honoured to be deputy prime minister of this country, and I’ve got a lot in my in-tray to prove that I can do the job that I’m doing and deliver on the milestones for the people of this country.
“That’s what I’m interested in.”
Asked to say the word never, she replied: “Never.”
Angela Rayner has ruled out becoming a future leader of the Labour Party (Getty)
Holly Evans25 May 2025 09:20
Nigel Farage would bring back winter fuel payments
Nigel Farage will commit to restoring the winter fuel payment to all pensioners and to scrapping the two-child benefit cap, reports have suggested.
The Reform UK leader is expected to appeal to left-wing voters with the moves in a speech next week, according to the Sunday Telegraph.
The newspaper said Mr Farage will describe Sir Keir Starmer as “one of the most unpatriotic prime ministers in our history and this past week has been evidence of that”, in his first speech since Reform made large gains in the local elections.
Reform UK is riding high in the opinion polls after its victories in town halls and the Runcorn and Helsby by-election, according to YouGov.
A Reform source told the newspaper: “We’re against the two-child cap and we’d go further on winter fuel by bringing the payment back for everyone.
“That’s already outflanking Labour.”
Nigel Farage’s Reform UK party is hoping to appeal to left-wing voters (PA) (PA Wire)
Holly Evans25 May 2025 09:17
Inquiry underway into how Angela Rayner memo was leaked
An inquiry is “under way” into how a memo from Angela Rayner to Chancellor Rachel Reeves was leaked, the Deputy Prime Minister suggested.
Asked by Sky News’s Sunday Morning With Trevor Phillips if a probe would be launched into how the memo was leaked, Ms Rayner said: “I think there’s one under way, and quite rightly so, because leaks are very damaging.
“It’s really damaging, because we have lots of sensitive conversations in the round, all of us, and then we make a collective decision.”
The Deputy PM would not be drawn into saying whether she wanted to see taxes raised, as the memo suggested was needed.
She told Sky News: “As a matter of principle, I will continue to have those conversations with our Government on how we can bring down the cost of living for working people, support children out of poverty, build the houses we said we’re going to do and protect our borders and security.”
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