Two-child benefit cap: Yvette Cooper refuses to say if she backs Labour’s decision to keep controversial policy
Labour’s Yvette Cooper has refused to say if she supports Sir Keir Starmer’s decision to keep the two-child benefit cap, amid growing party divisions over the issue.
The shadow home secretary said that – while the party wanted to address child poverty – “we’ve got to keep saying how we will pay for things”.
Sir Keir revealed over the weekend that he would keep the two-child benefit cap, which prevents parents fclaiming child benefits for any third or subsequent child born after April 2017.
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Labour quiet on public spending
He had previously opposed the limit during his campaign to be Labour leader – prompting accusations of a U-turn from critics.
Sir Keir’s intervention over the weekend also prompted a fresh backlash from his MPs, with Dame Meg Hillier, the chair of the Public Accounts Committee, saying she was “never comfortable about having the child benefit cap come in” and that she would personally lobby for it to be lifted.
Rosie Duffield, the MP for Canterbury, also tweeted that it was one of the “most unpleasant pieces of legislation ever to have been passed in the UK”.
It also emerged that several shadow cabinet ministers have previously spoken out against the policy, with Labour’s deputy leader Angela Rayner describing it as “obscene and inhumane” and Jonathan Ashworth, the shadow work and pensions secretary branding it “heinous”.
Asked whether she personally supported the cap, Ms Cooper avoided the question but repeated that Labour could not make unfunded promises.
And pressed on whether Labour would spend money on public services, she said Labour had already set out areas where it would increase investment, such as funding education through scrapping tax exemptions from private schools and the non-dom tax status.
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RMT boss criticises Keir Starmer
Ms Cooper also cited breakfast clubs, reforming Universal Credit and having a “long-term plan” to get people into work as measures the party would take to slash child poverty.
“We want to invest in our public services, but we’re also being really straight with people about where the funding is going to come from because we know that we’ve got to be really responsible with the public finances, and also show that we can deliver,” she said.
“I think people are fed up of promises that they think can’t be delivered.”
But pushed on whether she supported keeping the cap, Ms Cooper did not answer the question and replied: “We’ve got to be clear about what we can fund and that’s why Keir Starmer set out the position.”
Labour’s stance has prompted fears among some stakeholders, including trade unions, that its offer to the public is not bold enough nor different enough from the Tories going into the next election.
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Mick Lynch, the general secretary of the RMT union, told Sky’s Sophy Ridge On Sunday programme that Sir Keir should be “saying something about workers’ rights, he should say stuff about funding the NHS … addressing all sorts of stuff about what’s going to happen in the imbalance in our society”.
He added: “It’s a shame that Labour and others can’t show that they’re distinct from the kind of consensus that’s got us into this trouble where working people are struggling, the cost of living crisis seems to be ignored by the political class to certain extent.
“I don’t think Labour’s doing enough, we will be critical of Labour when they don’t do the right stuff and we will be supportive on the occasions that they do.
“And at the minute, many people can’t spot the difference and that’s a shame for somebody who’s probably as talented as Keir Starmer is, he’s got to show that he’s on the side of working people and progressive politics, and I don’t think we’re seeing that.”
Representatives of European Union member states reached an agreement on Wednesday in the Council of the EU to move forward with the controversial “Chat Control” child sexual abuse regulation, which paves the way for new rules targeting abusive child sexual abuse material (CSAM) on messaging apps and other online services.
“Every year, millions of files are shared that depict the sexual abuse of children… This is completely unacceptable. Therefore, I’m glad that the member states have finally agreed on a way forward that includes a number of obligations for providers of communication services,” commented Danish Minister for Justice, Peter Hummelgaard.
The deal, which follows years of division and deadlock among member states and privacy groups, allows the legislative file to move into final talks with the European Parliament on when and how platforms can be required to scan user content for suspected child sexual abuse and grooming.
The existing CSAM framework is set to expire on April 3, 2026, and is on track to be replaced by the new legislation, pending detailed negotiations with European Parliament lawmakers.
EU Chat Control laws: What’s in and what’s out
In its latest draft, the Council maintains the core CSAM framework but modifies how platforms are encouraged to act. Online services would still have to assess how their products can be abused and adopt mitigation measures.
Service providers would also have to cooperate with a newly-established EU Centre on Child Sexual Abuse to support the implementation of the regulation, and face oversight from national authorities if they fall short.
While the latest Council text removes the explicit obligation of mandatory scanning of all private messages, the legal basis for “voluntary” CSAM detection is extended indefinitely. There are also calls for tougher risk obligations for platforms.
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A compromise that satisfies neither side
To end the Chat Control stalemate, a team of Danish negotiators in the Council worked to remove the most contentious element: the blanket mandatory scanning requirement. Under previous provisions, end-to-end encrypted services like Signal and WhatsApp would have been required to systematically search users’ messages for illegal material.
Yet, it’s a compromise that leaves both sides feeling shortchanged. Law enforcement officials warn that abusive content will still lurk in the corners of fully encrypted services, while digital rights groups argue that the deal still paves the way for broader monitoring of private communications and potential for mass surveillance, according to a Thusday Politico report.
Lead negotiator and Chair of the Committee on Civil Liberties, Justice and Home Affairs in the European Parliament, Javier Zarzalejos, urged both the Council and Parliament to enter negotiations at once. He stressed the importance of establishing a legislative framework to prevent and combat child sexual abuse online, while respecting encryption.
“I am committed to work with all political groups, the Commission, and member states in the Council in the coming months in order to agree on a legally sound and balanced legislative text that contributes to effectively prevent and combating child sexual abuse online,” he stated.
The Council celebrated the latest efforts to protect children from sexual abuse online; however, former Dutch Member of Parliament Rob Roos lambasted the Council for acting similarly to the “East German era, stripping 450 million EU citizens of their right to privacy.” He warned that Brussels was acting “behind closed doors,” and that “Europe risks sliding into digital authoritarianism.”
Telegram founder and CEO Pavel Durov pointed out that EU officials were exempt from having their messages monitored. He commented in a post on X, “The EU weaponizes people’s strong emotions about child protection to push mass surveillance and censorship. Their surveillance law proposals conveniently exempted EU officials from having their own messages scanned.”
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Privacy on trial in broader global crackdown
The latest movement on Chat Control lands in the middle of a broader global crackdown on privacy tools. European regulators and law‑enforcement agencies have pushed high‑profile cases against crypto privacy projects like Tornado Cash, while US authorities have targeted developers linked to Samurai Wallet over alleged money‑laundering and sanctions violations, thrusting privacy‑preserving software into the crosshairs.
In response, Ethereum co‑founder Vitalik Buterin doubled down on the right to privacy as a core value. He donated 128 ETH each (roughly $760,000) to decentralized messaging projects Session and SimpleX Chat, arguing their importance in “preserving our digital privacy.”
Session president Alexander Linton told Cointelegraph that regulatory and technical developments are “threatening the future of private messaging,” while co-founder Chris McCabe said the challenge was now about raising global awareness.
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Australia’s government has introduced a new bill that will regulate crypto platforms under existing financial services laws after an industry consultation saw cautious support for the legislation.
Assistant Treasurer Daniel Mulino introduced the Corporations Amendment (Digital Assets Framework) Bill 2025 on Wednesday, which would require crypto companies such as exchanges and custody providers to obtain an Australian Financial Services License (AFSL).
“Across the world, digital assets are reshaping finance,” Mulino told the House on Wednesday. “Australia must keep pace. If we get this right, we can attract investment, create jobs and position our financial system as a leader in innovation.”
The Treasury launched a consultation over a draft of the bill in September, which Mulino told crypto conferencegoers was “the cornerstone” of the Albanese Government’s crypto roadmap released in March.
The local crypto industry largely supported the draft legislation, but many told the consultation that the bill needed further clarity and simplification.
New bill to include safeguards for crypto held for clients
Mulino told the House it’s currently possible for a company to hold an unlimited amount of client crypto “without any financial law safeguards,” adding the risks of scams or frauds like FTX “cannot be ignored.”
“This bill responds to those challenges by reducing loopholes and ensuring comparable activities face comparable obligations, tailored to the digital asset ecosystem,” he said.
Currently, crypto platforms that simply facilitate trading only need to register with the Australian Transaction Reports and Analysis Centre, which has 400 registered crypto exchanges, many of which are inactive.
The legislation would focus on the companies that hold crypto for customers, “rather than the underlying technology itself,” Mulino added. “This means it can evolve as new forms of tokenisation and digital services emerge.”
Crypto bill adds two new license types, exempts small players
The bill amends the Corporations Act to create two new financial products, a “digital asset platform” and a “tokenized custody platform,” both of which will need an AFSL.
The license will register the platforms with the Australian Securities and Investments Commission. Currently, only exchanges that sell “financial products,” such as derivatives, must register.
Mulino said anyone “advising on, dealing in, or arranging for others to deal in” crypto will be treated as providing a financial service that requires a license.
Related: Australia risks ‘missed opportunity’ by shirking tokenization: Top regulator
Under the bill, crypto and custody platforms must meet ASIC’s minimum standards for transactions, settlements and holding customer assets. They must also give a guide to clients explaining their service, fees and risks.
Mulino said the bill exempts “small-scale” companies from licensing, those with less than 10 million Australian dollars ($6.5 million) in transaction volume in 12 months, along with those that deal or advise on platforms “incidental to their main, non-financial activities.”
The bill outlines an 18-month grace period on licensing, which Mulino said gives “relief for businesses trying to do the right thing.”
The bill is likely to quickly pass the House, where Prime Minister Anthony Albanese’s center-left Labor Party holds a 94-seat majority. It will then head to the Senate, where Labor may need the support of the crossbench and opposition to pass it.
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