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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”.

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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.”

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Hadush Kebatu: Migrant sex offender deported after mistaken prison release

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Hadush Kebatu: Migrant sex offender deported after mistaken prison release

Migrant sex offender Hadush Kebatu has been deported to Ethiopia following his mistaken release from prison.

Footage captured from Heathrow Airport showed the moment he was escorted on to a plane on Tuesday night.

The government says he has no right to return to the UK.

Home Secretary Shabana Mahmood said she “pulled every lever” to deport Kebatu.

“I am pleased to confirm this vile child sex offender has been deported. Our streets are safer because of it,” she said.

Hadush Kebatu was arrested on Sunday after his mistaken release
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Hadush Kebatu was arrested on Sunday after his mistaken release

Kebatu was found and arrested by the Metropolitan Police in the Finsbury Park area of north London at around 8.30am on Sunday following a manhunt.

Last month he was found guilty of sexually assaulting a schoolgirl and a woman in Epping, Essex, just over a week after arriving in the UK on a small boat.

He was expected to be deported, but instead of being handed over to immigration officials he was released from HMP Chelmsford on Friday.

He spent just under 48 hours at large before he was apprehended.

The accidental release sparked widespread alarm and questions over how a man whose crimes sparked protests in Epping over the use of asylum hotels was able to be freed.

Ms Mahmood said: “Last week’s blunder should never have happened – and I share the public’s anger that it did.”

Anti-asylum demonstrators in Epping, Essex. Pic: PA
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Anti-asylum demonstrators in Epping, Essex. Pic: PA

On Sunday, Justice Secretary David Lammy said an exclusive Sky News interview will be used as part of an independent inquiry into the mistaken release.

Speaking to Sky’s national correspondent Tom Parmenter, a delivery driver who spoke to Kebatu at HMP Chelmsford described him as being “confused” as he was being guided to the railway station by prison staff.

The migrant is said to have returned to the prison reception four or five times before leaving the area on a train heading to London.

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‘My family feels massively let down’

Mr Lammy, who put Kebatu’s release down to human error, said he ordered an “urgent review” into the checks that take place when an offender is released from prison, and new safeguards have been added that amount to the “strongest release checks that have ever been in place”.

From Monday, new checks include five pages of instructions and demands that more senior prison staff sign off a release, according to documents obtained by Sky News.

“I have been clear from the outset that a mistake of this nature is unacceptable, and we must get to the bottom of what happened,” said Mr Lammy.

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Slashing foreign aid will lead to unrest, crises and threaten UK security, MPs warn government

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Slashing foreign aid will lead to unrest, crises and threaten UK security, MPs warn government

The government’s decision to slash foreign aid will lead to unrest, further crises and threaten UK security, a group of cross-party MPs has warned.

A report by the International Development Committee found the decision in February to reduce aid to 0.3% of gross national income (GNI) by 2027/28 – coupled with the US cutting its aid budget – is having a severe impact.

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The foreign aid budget was cut to invest in defence from 0.5% of GNI, which was meant to be an interim reduction from 0.7% to cope with economic challenges caused by the pandemic.

Total aid spending is set to reduce from £14.1bn in 2024 to £9.4bn by 2028/29.

The committee, chaired by Labour MP Sarah Champion, said spending is being prioritised on humanitarian aid over development, which “builds long-term resilience and should lead to reducing the need for humanitarian aid”.

They said the international development minister, Baroness Chapman, has made it clear “the UK will remain a leading humanitarian actor”.

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Explained: Key Sudan city falls

But the committee said while they are glad those in “desperate need of aid will be prioritised, particularly in the regions of Ukraine, Gaza, and Sudan”, they are concerned about the long-term effect of pulling development aid.

“We are concerned that slashing development aid will continue to lead to unrest and further crises in the future, presenting a threat to UK security,” the MPs said.

David Lammy, when he was foreign secretary, on a visit to Chad to see how aid agencies are dealing with the humanitarian crisis. Pic: PA
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David Lammy, when he was foreign secretary, on a visit to Chad to see how aid agencies are dealing with the humanitarian crisis. Pic: PA

Risk to UK’s national security

They said a reduction in foreign aid will have “devastating consequences across the world”.

The committee said it recognises an increase in defence spending is needed, but “to do this at the expense of the world’s most vulnerable undermines not only the UK’s soft power, but also its national security”.

They said the government must make “every effort” to return to spending 0.5% of GNI on foreign aid “at a minimum, as soon as possible”.

The committee also found long-term funding for development is “essential” to ensure value for money is achieved.

However, they accused the government of seeing value for money only in terms of the taxpayer, saying that downplays “equity and the importance of poverty reduction” and causes tension.

They agreed accountability to the taxpayer is “key to reducing poverty globally, and maximising the impact of each pound to do so, must remain the Foreign, Commonwealth and Development Office’s central tenet for official development assistance spending”.

A Foreign Office team member helping evacuees in Cyprus in 2023. File pic: Reuters
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A Foreign Office team member helping evacuees in Cyprus in 2023. File pic: Reuters

Spending on migrant hotels

Spending on migrant hotels in the UK was also criticised by the MPs, who said while international aid rules mean they can cover refugee hosting for the first 12 months in the UK, given the recent cuts, that is “incompatible with the spirit” of the UN’s OECD Development Assistance Committee rules.

“Excessive spend on hotel costs is not an effective use of development budget,” they said.

The committee recommended costs of housing refugees should be capped “at a fixed percentage” of total foreign aid spending “to protect a rapidly diminishing envelope of funding”.

Read more: Govt struggles to slash aid spent on asylum hotels

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Inside Afghanistan’s hunger crisis

‘Short-sighted’

Reacting to the report, Timothy Ingram, head of UK advocacy at WaterAid, said: “The UK government’s decision to cut the aid budget was one that defied both logic and humanity. Aid when delivered effectively in partnership with local communities is not charity – it’s an investment in a safer and more prosperous world.

“Undermining it, especially vital finance for water, weakens the world’s resilience to climate shocks, pandemics, and conflict – impacting the one in 10 people without access to clean water, and ultimately making us all less safe.

“This is a short-sighted political decision with long-term consequences for the UK’s stability, economy and global standing. We join with MPs in urging the government, once again, to urgently reconsider.”

Lack of transparency over private contractors’ spending

In the report, MPs said it is worried the Foreign Office has not reviewed aid spending on multilateral organisations, which allows the UK less direct influence over spending, such as the World Bank or vaccine organisation Gavi since 2016, despite spending nearly £3bn on them in 2024.

They said the use of private contractors does not offer inherently poor value for money, but a lack of transparency and data can mean under-delivering and a loss of “in-house” expertise.

Palestinians carry aid supplies that entered Gaza. Pic: Reuters
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Palestinians carry aid supplies that entered Gaza. Pic: Reuters

‘Tragic error’

Sarah Champion, chair of the International Development Committee, said: “Ensuring aid delivers genuine value for money has never been more important. As major donors tighten their belts, we have to ensure that every penny we spend goes to the people most in need.

“The former Department for International Development was rightly seen as a world leader in value for money; the FCDO is broadly hanging on to that reputation. But it must make some urgent improvements.

“Reducing poverty must be the central aim of the development budget. While accountability to the taxpayer is an important consideration, the FCDO’s current definition of value for money risks diverting focus away from improving the lives of the most vulnerable – the very reason the aid budget exists at all.

“The savage aid cuts announced this year are already proving to be a tragic error that will cost lives and livelihoods, undermine our international standing and ultimately threaten our national security. They must be reversed.

“Value for money is critical to making the most of a shrinking aid budget. While this report finds some positives, the government must take urgent action to wipe out waste and ensure the money we are still spending makes a genuine difference.”

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Budget 2025: Reeves vows to ‘defy’ gloomy forecasts – but faces income tax warning

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Budget 2025: Reeves vows to 'defy' gloomy forecasts - but faces income tax warning

Rachel Reeves has said she is determined to “defy” forecasts that suggest she will face a multibillion-pound black hole in next month’s budget.

Writing in The Guardian, the chancellor argued the “foundations of Britain’s economy remain strong” – and rejected claims the country is in a permanent state of decline.

Reports have suggested the Office for Budget Responsibility is expected to downgrade its productivity growth forecast by about 0.3 percentage points.

Rachel Reeves. PA file pic
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Rachel Reeves. PA file pic

That means the Treasury will take in less tax than expected over the coming years – and this could leave a gap of up to £40bn in the country’s finances.

Ms Reeves wrote she would not “pre-empt” these forecasts, and her job “is not to relitigate the past or let past mistakes determine our future”.

“I am determined that we don’t simply accept the forecasts, but we defy them, as we already have this year. To do so means taking necessary choices today, including at the budget next month,” the chancellor added.

She also pointed to five interest rate cuts, three trade deals with major economies and wages outpacing inflation as evidence Labour has made progress since the election.

Speculation is growing that Ms Reeves may break a key manifesto pledge by raising income tax or national insurance during the budget on 26 November.

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Chancellor faces tough budget choices

Although her article didn’t address this, she admitted “our country and our economy continue to face challenges”.

Her opinion piece said: “The decisions I will take at the budget don’t come for free, and they are not easy – but they are the right, fair and necessary choices.”

Yesterday, Sky’s deputy political editor Sam Coates reported that Ms Reeves is unlikely to raise the basic rates of income tax or national insurance, to avoid breaking a promise to protect “working people” in the budget.

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Tax hikes possible, Reeves tells Sky News

Sky News has also obtained an internal definition of “working people” used by the Treasury, which relates to Britons who earn less than £45,000 a year.

This, in theory, means those on higher salaries could be the ones to face a squeeze in the budget – with the Treasury stating that it does not comment on tax measures.

Read more: The taxes Reeves could raise

In other developments, some top economists have warned Ms Reeves that increasing income tax or reducing public spending is her only option for balancing the books.

Experts from the Institute for Fiscal Studies have cautioned the chancellor against opting to hike alternative taxes instead, telling The Independent this would “cause unnecessary amounts of economic damage”.

Although such an approach would help the chancellor avoid breaking Labour’s manifesto pledge, it is feared a series of smaller changes would make the tax system “ever more complicated and less efficient”.

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