Politics latest: Keir Starmer under pressure over two-child benefit cap; senior Tory 'considering' leadership bid (2024)

By Jennifer Scott, political reporter

Not even three weeks into government, and there is already the stirring of descent from the backbenches.

The row is over the two-child benefit cap, introduced by the Conservatives in 2017, which restricts child tax credit and universal credit to the first two children in most households.

Ministers say scrapping the policy is too expensive as the public purse is under such strain.

But that hasn't stopped a number of Labour MPs pushing for it to end, and putting forward an amendment to the King's Speech to try and force the government's hand.

We have just found out that Work and Pensions Secretary Liz Kendall will be hosting a "poverty strategy" briefing for MPs worried about the cap in parliament this afternoon to try and win them round.

Asked if she had any chance of that, one of the rebel MPs tells me: "We'll see..."

We will let you know what comes out of the meeting.

Sky News' deputy political editor Sam Coates and Politico's Jack Blanchard are here with their guide to the day ahead in politics.

On the morning after Joe Biden announcedhe would withdraw from the US presidential race, Jack and Sam talk about all the developments across the pond.

And with about a week and a half left ofparliament sitting before summer recess, they discuss the prime minister's agenda for the week and look at how the chancellor is dealing with public finances.

Email Jack and Sam: jackandsam@sky.uk

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Independent pay review bodies have reportedly told ministers millions of public sector workers should be given a 5.5% increase in pay.

The proposed above-inflation increase for teachers and around 1.3 million NHS staff, reported by The Times, is well above the figure the government is thought to have been preparing for.

Sir Keir Starmer's government could need up to £10bn to cover such a pay increase if all public sector workers were given the 5.5% rise, an economist has warned.

There are more than 500,000 teachers in the UK.

At present, the government is believed to have budgeted for an increase of somewhere between 1% and 3%, with inflation currently at 2%.

You can read more from Sky News here:

Welsh Health Secretary Eluned Morgan has officially announced she is running to replace outgoing First Minister Vaughan Gething, who lasted just four months in the post.

Baroness Morgan will be standing on a joint "unity" ticket with rural affairs minister Huw Irranca-Davies, who would become deputy first minister.

If she is successful, the Welsh health secretary would be the first female leader of Wales.

Baroness Morgan said: "I am proud to stand as a candidate to be the next leader of Welsh Labour, driven by a passion to serve the people and reset the relationship between the Government and the people of Wales.

"I am delighted to be teaming up with my fantastic colleague, Huw Irranca-Davies, who shares my passion and experience in government and strong sense of public duty. Together, we are committed to putting Wales back on track.

"In the coming days, we will set out our priorities to improve public services, create better, greener jobs and empower our communities.

"Our focus will be meaningful change and building a brighter future for communities across Wales."

Downing Street has denied that the government had changed its position on the two-child benefit cap after Education Secretary Bridget Phillipson suggested that scrapping it would be "considered".

Sir Keir Starmer's spokesman said simply: "No."

He added: "It's as the chancellor said yesterday, it's as the PM I think addressed this morning as well, the government has got a certain set of fiscal inheritance that it has to deal with.

"I think, as the chancellor said on the round yesterday, that they weren't going to make spending commitments without being able to say where the money was going to come from.

"But that doesn't mean that we can't take action to tackle child poverty."

Asked whether Ms Phillipson had spoken out of turn, the official said: "No.

"I think she talked about the fact that there are a range of measures that we will need to consider in terms of how we respond to this, that we will look at every measure in terms of how we can address this terrible blight that scars the life chances of too many children."

He said "nothing's out of the scope of the taskforce" when pressed on whether the possible scrapping of the cap was within its remit.

By Mark Kleinman, City editor

Nadhim Zahawi, the former Conservative chancellor, is assembling a £600m bid for The Daily Telegraph that could up-end the auction of some of Britain’s most influential media assets.

Sky News has learnt that Mr Zahawi, who left parliament in May after opting not to stand again in his Stratford-on-Avon seat, has approached a number of billionaire backers about helping to finance an offer for the daily newspaper, its Sunday sister title and The Spectator magazine.

City sources said the Reuben family, which owns a vast swathe of property assets and a stake in Newcastle United Football Club, was among those to have been sounded out by Mr Zahawi in recent weeks.

The former Cabinet minister, who also spent time as business secretary, education secretary and as the government's vaccines minister during the COVID-19 pandemic, is said to believe the Telegraph has significant scope to boost its profitability by expanding in the US.

You can read more from Sky News below:

Sir Keir Starmer is under pressure from cross-party MPs to scrap the two-child benefit cap, which has been blamed for a rise in child poverty in the UK.

He said today that there is "no silver bullet" to tackling the issue.

But earlier, Education Secretary Bridget Phillipson told Sky News that scrapping the cap would have to be considered.

You can watch her conversation again below:

Around 1,500 migrants have arrived in the UK after a busy week of crossings in the English Channel, the latest figures show.

Some 1,499 people made the journey in 27 boats from 15 to 21 July, while the French coastguard confirmed two people died amid rescue operations off the northern French coast.

The maritime prefecture also said on Sunday that a further 71 migrants were saved in the Channel, but some travellers on the boat who were not requesting assistance were allowed to continue the journey.

They said this decision was made given the risk of "falling overboard or of injury to people in the event of forced intervention".

Some 114 people arrived on Sunday in two boats, according to latest Home Office data, bringing the provisional total for the year so far to 15,831.

This is 9% higher than the number recorded this time last year (14,534) and up 3% on the same period in 2022 (15,314), according to analysis of government data.

Analysis by Rob Powell, political correspondent

The story of the Starmer government will be shaped by the tension between the change it promised in opposition and the lack of cash available to achieve it.

We can now see the first couple of chapters in this tale - public sector pay and benefits.

The indications this weekend are that the chancellor will acquiesce to a reported above-inflation pay rise for many public sector workers.

To not do so would risk a fresh wave of strikes.

You can read more from Sky News here:

Prime Minister Keir Starmer today acknowledged the passion of Labour MPs who may be considering rebelling over the continuation of the two-child benefit limit.

He said there was "no silver bullet" to tackle child poverty but "it's good that we're having a debate about it".

Speaking at the Farnborough International Airshow, Sir Keir said: "I'm not surprised that there's a real passion about this in the Labour Party, you'd expect there to be.

"Child poverty is something that we need to eradicate. And there's a very strong feeling in the Labour Party, labour movement about that.

"That is precisely why I set up the taskforce to tackle child poverty.

"There is no silver bullet. If there was a silver bullet it would have been shot a very long time ago."

There was a "complicated set of factors" including pay, benefits, work, housing, education and health "and that is why you need a strategy to deal with it".