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Working Tax Credit and Universal Credit: Two-Child Limit
21 April 2022
Lead MP
Alison Thewliss
Glasgow Central
SNP
Responding Minister
David Rutley
Tags
Benefits & WelfareChildren & Families
Word Count: 12803
Other Contributors: 12
At a Glance
Alison Thewliss raised concerns about working tax credit and universal credit: two-child limit in Westminster Hall. A government minister responded.
Key Requests to Government:
The policy should be abolished to prevent further hardship for struggling families. The Minister should comment on monitoring the impact of this policy on women's decisions and provide a timeline for its removal.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The two-child limit policy has affected 1.4 million children in 400,000 families and is expected to affect 3 million if continued. The policy breaks the link between need and entitlement and punishes people for their circumstances, driving up child poverty rates without influencing fertility rates. Many families have been pushed into a poverty trap due to the cost of childcare and inability to work more hours. Additional 15,000 families were affected during the pandemic as they claimed universal credit for the first time.
Alan Brown
SNP
Cardiff South and Penarth
Mr Brown highlighted the unfairness of the two-child policy, noting that children born after a midnight deadline are not deemed worthy of support. He criticized the policy for stigmatizing families and putting a price on children, leading to increased child poverty among larger families. He thanked the Minister for an opportunity to speak and asked whether he agrees that the minimum wage should reflect the national living wage, ensuring people receive a fair wage.
Alison McGovern
Lab
Birkenhead
She requested the Minister's attention by asking if he would give way for further questions or comments.
Beth Winter
Lab
Cynon Valley
Welcomed the debate on the two-child-limit policy, criticising it as a legacy of low-pay and low-income experience. Cited a report that found April's below-inflation benefits rise means families with three children face an additional £938 annual shortfall in basic costs. The speaker also highlighted that 4.3 million UK children live in relative poverty.
Carol Monaghan
SNP
Glasgow North West
Noted that China is facing birth rate issues due to low numbers of children, similar to the UK where austerity measures have led to a 12% drop in the birth rate since 2012. This has implications for pension contributions and job availability. The statistics from the National Audit Office show a 24% increase in abortions in England and Wales since 2016, when the two-child limit policy was implemented.
Fleur Anderson
Lab
Putney
In Putney, families are increasingly relying on food banks. The Wandsworth Foodbank and Little Village have indicated that scrapping the two-child limit would be crucial in reducing poverty locally.
Arfon
The two-child rule has become normalised and accepted, but it remains a burden on families. The author shares his personal experience of growing up as one of seven children in the 1970s when social provisions were more comprehensive and supportive. He highlights that Wales has a high rate of child poverty at 31%, with 570 households affected by the two-child limit in Gwynedd alone. The Welsh Affairs Committee's report on the benefits system raised concerns about the policy. He questioned the actual impact of the two-child limit and asked whether it had no effect or if its effects have been mitigated. He also inquired about the consequences for children in families affected by this policy.
Imran Hussain
Lab
Bradford East
The Government's austerity agenda has led to a cost of living crisis and rampant poverty, with children going hungry in constituencies due to policies such as the two-child benefit cap.
Jim Shannon
DUP
Strangford
Enforcing the rule may create a human rights issue for those who do not want to be under it, highlighting the need to consider faith and human rights within this debate. Jim Shannon supported the comments made by Alison Thewliss, highlighting that the London School of Economics' research showed that the two-child limit policy had only a small impact on fertility but significantly reduced incomes and increased child poverty. He expressed concern over the moral implications of the policy leading to abortions due to financial constraints. Shannon also cited data showing 1.1 million children affected by the limit, with the number expected to grow as nearly all low-income families with three or more children become subject to it.
Carmarthen East and Dinefwr
I congratulate the hon. Lady on making a very powerful case during her speech. However, ultimately, has she come to the position that I have, in my political life, that a just and fair economy and society for Wales will never be created by Westminster? The only solution for us is to take control of those powers ourselves.
Karen Buck
Lab
Westminster North
Karen Buck criticised the Government's two-child policy, arguing it fails to address child poverty and imposes a moral imperative on society. She highlighted that as of April last year, 317,500 families and over a million children were affected by the policy. Buck emphasised that nearly half of all families receive tax credits or universal credit, questioning the Government's rationale for the policy. She also noted that since the pandemic, even the Government recognises the unpredictability of whether a family will rely on social security benefits. She sought confirmation from the Minister that he accepts her earlier point indicating a significant rise in absolute poverty among families with three or more children.
Rottenrow
The requirement for victims of non-consensual conception to prove their case through a conviction or criminal injuries compensation claim further victimises those who already suffer from low rape conviction rates. Does the hon. Lady agree that following the Government's decision to cut universal credit payments, with inflation rates rising astronomically and a real cost of living crisis, a decision to keep the two-child limit is actively pushing children below the poverty line, which will undoubtedly impact on the UK's levels of social mobility? Asked Hywel Williams whether he agreed that Ministers must engage with charities and organisations to understand the real impact of policies such as the two-child limit, pointing out research by the New Field Foundation indicating that it does not discourage families from having more children but worsens their financial situation.
Rupa Huq
Lab
Ealing Central and Acton
Since the start of the covid pandemic, 27% more families now fall under the two-child limit policy. The Bishop of Manchester has described this policy as defying moral justification.
Government Response
David Rutley
Government Response
It is a pleasure to serve under your chairmanship, Mr McCabe. The Department for Work and Pensions supports families and helps parents into work while ensuring fairness for taxpayers. Since the two-child policy was introduced in April 2017, 85% of all families with dependent children had a maximum of two children; lone parent families saw an 83% figure. Exceptions apply to third or subsequent children born before 6 April 2017 and those conceived through non-consensual means. The policy aims for fairness between benefit recipients and taxpayers who do not see their incomes rise with more children, encouraging employment and work incentives such as the UC taper rate changes and increased work allowances. We aim to reduce poverty by lifting children out of workless households and supporting parents into better jobs. Statistics show a 2.3 percentage point increase in employment rates for couples with children between 2016 and 2021, and 1.2 million fewer people were in absolute low income in 2020-21 compared to 2009-10. The Supreme Court found the two-child policy lawful and not in breach of the European convention on human rights.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.