Anas Sarwar calls for the removal of two-child benefit cap ahead of Budget
Scottish Labour leader outlines key measures needed to tackle child poverty and rising energy costs
Last updated 4th Dec 2025
Scottish Labour leader Anas Sarwar has called for the removal of the two-child benefit cap as part of Chancellor Rachel Reeves’s upcoming Budget plans.
He's outlined the key areas the Budget, to be announced on Wednesday, should focus on, stressing the need to tackle child poverty, address the cost-of-living crisis, and avoid austerity measures.
"This has to be a Budget that reduces poverty, in particular, child poverty," Mr Sarwar said. He emphasised that ending the two-child benefit cap would lift tens of thousands of children out of poverty.
Tackling the cost-of-living crisis
Mr Sarwar argued that the Budget must include robust measures to alleviate the pressure of rising energy bills on households in Scotland.
"Energy bills come up time and time again," Mr Sarwar explained, sharing his hope for a “significant energy package” to be included in the Budget while also advocating for long-term reforms in the energy market.
He welcomed ongoing investments in renewable energy projects, especially in Scotland, saying: "We do have to invest in the renewables opportunity that exists in our country, disproportionately in Scotland. That's why I welcome the significant investment in that green energy of the future. That's why having public ownership as part of that is really important."
Support for oil and gas
On the topic of the future of the energy sector, Mr Sarwar urged for a balanced approach when it comes to oil and gas licensing.
"The oil and gas sector has got an important role to play for decades to come. That's why we have to have a sensible approach around licensing and consenting," he said, adding that while some companies in the sector may face financial difficulties, some of the larger players continue to make significant profits while energy bills rise.
As the UK Government prepares for the Budget announcement, a spokesperson confirmed it would aim to address national priorities affecting working people.
"The Chancellor will deliver a Budget that builds stronger foundations to secure Scotland and the whole United Kingdom's future, focusing on the priorities of working people: cutting waiting lists further, cutting the national debt and cutting the cost of living," the spokesperson said.
The Budget will be announced on Wednesday.