Keir Starmer’s government suffered its first rebellion after seven Labour MPs voted with opposition parties to scrap the two-child benefit cap. The Scottish National party brought an amendment to throw out the measure, which has been widely criticised by child poverty charities and campaigners. Despite there being no question of Labour losing a vote on the issue given its majority of 174, parliamentarians said they were alarmed by the strength of warnings from whips about rebelling early in the parliament. The amendment failed by 363 votes to 103, a majority of 260 for Labour. The seven Labour MPs who voted against the government on an amendment to scrap the two-child benefit cap have had the whip suspended, the PA news agency understands. Prior to the vote, chancellor Rachel Reeves told the cabinet earlier in the day that “difficult decisions” would be needed on public spending ahead of the potential rebellion. Work and pensions secretary Liz Kendall echoed the chancellor’s words during the morning media round when she said the government has to do “the sums” before committing to scrap the cap. Shadow home secretary James Cleverly has announced he will enter the race to replace Rishi Sunak as Conservative leader. The Bibby Stockholm, the controversial barge which has been used to accommodate asylum seekers, is to be shut down. Use of the vessel, which is now housing 400 migrants and is moored at Dorset, will end when the current contract ends in January 2025. The Home Office said in an announcement that ending the use of the Bibby Stockholm formed part of an expected £7.7bn of savings in asylum costs over the next 10 years. Keir Starmer and Ursula von der Leyen are expected to meet in the autumn after provisional plans for this week for a first face-to-face conversation about the prime minister’s desired reset in UK-EU relations were put on the back burner. It is understood the EU had offered this Thursday or Friday for a meeting but diary clashes including the opening of the Olympics on Friday made it impossible for Starmer. Liz Kendall repeatedly failed to answer whether the government would publish legal advice from the Foreign Office on whether Israel is breaching international humanitarian law in Gaza. This comes after David Lammy suggested he would publish such advice while in opposition when urging the then-foreign secretary David Cameron to do so over fears there was a risk that British arms were being used to carry out international war crimes. Councils are facing “unsustainable financial pressure” in dealing with record levels of homelessness, the public spending watchdog has warned in a new report. The latest figures, to 31 December last year, showed a new record high of 145,800 children in temporary accommodation, up by a fifth on 20 years ago when records for this measure began.