Universal Credit and Child Tax Credit: Two-child Limit

Lord Bishop of Durham Excerpts

Wednesday 24th April 2019 Lords Chamber

Asked by

[The Lord Bishop of Durham]

To ask Her Majesty’s Government what analysis they have made of the impact of the two-child limit on the per-child element of Universal Credit and Child Tax Credit payments on (1) child poverty, and (2) child development, for children under five years old affected by the policy.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Buscombe) (Con)]

My Lords, the Government are committed to supporting child well-being, and keep the impact of all their policies under review. This policy ensures fairness between those supporting themselves solely through work and those receiving benefits. Isolating the effect of the many individual policies on the income and well-being of children and families is, of course, challenging. Child benefit continues to be paid for all children, as well as an additional amount for any disabled children.

[The Lord Bishop of Durham]

I thank the Minister for her reply. May I push her further on the impact, specifically on child development? We all know that the first years of life are the most crucial for development and, therefore, the impact on life chances. Will the Minister commit to hearing the emerging stories of families with a third child who are being adversely affected by this policy?

[Baroness Buscombe]

My Lords, to be clear, on 28 June last year we published the first annual statistics related to the policy and have committed to do so annually. The Government have a broad range of policies which affect children and families across the tax and benefits system and public services. What makes a difference to child poverty is a strong economy, and I am pleased to inform the House that employment is at a record high, at 76.1%, while unemployment, at 3.9%, has not been lower since the 1970s.