Ex-shadow chancellor John McDonnell has been readmitted as a Labour MP alongside Apsana Bagum, after a year-long ban for voting against the government on the two-child benefit cap.
They were among seven left-wing MPs who, days after Labour’s 2024 landslide, backed an SNP motion to scrap the cap – which prevents almost all parents from claiming Universal Credit or child tax credit for more than two children.
Six of the MPs have now rejoined Labour, which has softened its stance on the cap in recent months. The seventh suspended MP, Zarah Sultana, resigned from Labour last month to set up a new party with ex-leader Jeremy Corbyn.
Labour has not commented on why the MPs have had the whip restored.
Their return to Labour comes seven months after the whip was returned to Richard Burgon, Ian Byrne, Imran Hussain and Rebecca Long-Bailey for their rebellion.
Although the government won the vote comfortably, it marked the first Commons rebellion of Sir Keir Starmer’s premiership.
Some MPs on the right of the Labour Party had been pushing for McDonnell – a long-time ally of Corbyn – to be expelled from the parliamentary party on a more permanent basis.
The two-child cap, introduced under the Conservatives, prevents households on universal or child tax credit from receiving payments for a third or subsequent child born after April 2017.
After winning the 2024 general election, Labour said it was not prepared to make “unfunded promises” by abolishing the cap.
The Resolution Foundation think tank says axing the policy would cost £3.5bn and would lift 470,000 children out of poverty.
McDonnell and Begum’s suspensions ended on Friday following discussions with the new chief whip, Jonathan Reynolds.
It comes as ministers face rising pressure to abolish the cap, with both Labour deputy leadership candidates expressing opposition to the policy, along with voices from outside Parliament such as Greater Manchester Mayor Andy Burnham.
Last week, Education Secretary Bridget Phillipson said scrapping the two-child benefit cap was “on the table”, in the clearest sign yet that ministers could scrap the policy.
Phillipson, who is also running to be deputy leader of the Labour Party, said tackling poverty “brought me into politics” and she would fight on the issue “day, in, day out” if she won the role.
“I am clear that everything is on the table, and that includes removing the two-child limit,” she added.
The issue is expected to be a key theme of Labour’s annual conference, which begins in Liverpool this weekend.
Reform UK has also pledged to scrap the limit if it wins power, although the Conservatives have said getting rid of it is not “economically credible”.
The government’s long-awaited Child Poverty Strategy was expected in spring but has yet to be published.