Commons Sense

House of Commons · Westminster Hall

Two-child Benefit Cap and Child Poverty

11 July 2023 · 7 other contributors · 3,981 words

Opened by Kim Johnson Lab Liverpool Riverside

Responding minister: Guy Opperman

EconomyBenefits & WelfareChildren & Families

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Kim Johnson raised concerns about two-child benefit cap and child poverty in Westminster Hall. A government minister responded.

Key points

  • The two-child benefit cap has resulted in an increase in child poverty, particularly affecting larger families, Black and ethnic minority families, and single-parent families.
  • Kim Johnson cites statistics showing child poverty rates among larger families increased significantly between 2012-13 and 2019-20.
  • Johnson urges the Government to lift the two-child benefit cap immediately to raise 1.1 million children out of poverty at a cost of 1.3 billion.

Key requests to Government

Johnson urges the Government to lift the two-child benefit cap immediately to raise 1.1 million children out of poverty at a cost of just £1.3 billion. She calls for enhanced workers' rights to ensure that work pays enough to live and raise a family, advocating for universal free school meals to alleviate child poverty.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Kim Johnson Lab Liverpool Riverside

The two-child benefit cap has resulted in an increase in child poverty, particularly affecting larger families, Black and ethnic minority families, single-parent families, and those who rent. In Liverpool Riverside, 11 children out of every 30 are living in poverty, with many more ineligible for extra support due to the cap. Kim Johnson cited statistics from the Joseph Rowntree Foundation showing that child poverty rates among larger families increased significantly between 2012-13 and 2019-20. The policy has forced some women to disclose traumatic personal details to receive support, leading to severe psychological impacts. Families affected by the cap are losing an average of £3,235 annually.

Other contributors (7)
  • Beth Winter

    CPAG estimates over 4 million children live in poverty, a figure set to rise. Wales is clear on scrapping the two-child limit, urging the UK Government to do the same.

  • Ian Lavery Lab Blyth and Ashington

    In the north-east, 12,000 children are unable to claim universal credit benefits due to the two-child cap. This impacts families across the country. The Minister claims to be good on benefits and support but 4.2 million children live in poverty; the minister must admit this is too high. Children are not concerned about different types of poverty, only if they have food or not. The Government should be ashamed due to rising statistics.

  • Margaret Greenwood Lab Wirral West

    More than 2,700 children in Wirral West live in poverty, impacting their educational attainment and life chances. Ending the two-child limit is urgent.

  • Mary Foy Lab City of Durham

    The rape clause remains in effect and it should be repealed immediately as it is a disgraceful policy that punishes victims.

  • Mick Whitley Lab Congleton

    Scrapping the two-child limit would be cost-effective, lifting a quarter of a million children out of poverty. The Labour party should commit to scrapping this cap in the first days of the next government.

  • Nadia Whittome Lab Nottingham East

    The Minister is unaware of a recent London School of Economics study that found the two-child benefit cap policy has not increased employment levels, concluding the policy fails while hundreds of thousands of families face poverty.

  • Rachael Maskell Lab Co-op York Central

    The Joseph Rowntree Foundation demonstrates that the two-child limit impacts children's well-being and families are struggling with rent costs due to this policy.

Government Response

Guy Opperman

It is a pleasure to serve under your chairmanship, Mr Pritchard, and I congratulate the hon. Member for Liverpool, Riverside on securing the debate. The Government believe that supporting people's living standards through work, better skills and higher wages is crucial. In 2021-22, children in households where all adults were employed were five times less likely to be in absolute poverty after housing costs than those in workless households. Since 2009-10, there are 1.7 million fewer people and 400,000 fewer children in absolute poverty after housing costs. The Government increased the benefit cap levels by 10.1% from April 2023, allowing up to £26,500 nationally or £31,300 in London, including a national living wage increase of 9.7%. Over the past two years, the taxpayer has contributed £94 billion of support to vulnerable households with ongoing measures such as an energy price guarantee until March 2024 and cost of living payments of £150 to 6 million people. Additionally, there is a winter fuel payment worth £300 for over 8 million pensioner households. The Government's policy aims to provide strong work incentives and support while ensuring fairness to the taxpayer. Universal credit offers additional help with eligible childcare costs regardless of the total number of children in the household, encouraging people to move into work. In conclusion, there is ample evidence showing that children are supported by the social security system through benefits increases, cost of living support, national living wage uprating, and jobcentre support for in-work progression.

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