Universal Credit and Child Tax Credit: Two-child Limit

Alison Thewliss Excerpts

Tuesday 27th November 2018 Westminster Hall

[Alison Thewliss (Glasgow Central) (SNP)]

I beg to move,

That this House has considered the two child limit in universal credit and child tax credits.

It is a pleasure to serve under your chairmanship, Mr Streeter. It is surreal still to be here debating the two-child limit in universal credit and child tax credit. When I saw the limit and the cruel and pernicious rape clause that stands part of the policy laid out in the Chancellor’s Budget in 2015, I was sure that I had made a mistake. After all, no humane Government would propose such a blunt instrument as limiting support to the first two children in a family, or making a woman prove that she has been raped just to put food on the table.

Unfortunately, I was wrong. It is three years, four months and 20 days after that Budget, and the UN special rapporteur on extreme poverty and human rights has found that the UK Tory Government is exactly such an inhumane Government. Despite warnings from all manner of groups, cross-party support and U-turns on other policies over the years, the two-child policy is apparently the one that the UK Tory Government will stick to through thick and thin.

The policy stands in judgment on people’s lives and suggests that those who are less well off

“cannot have as many children as they like”—[Scottish Parliament Official Report, 24 October 2018; c. 52.]

as Tory social security spokesperson Michelle Ballantyne MSP said. The policy is damaging in the extreme, and I will outline to the Minister exactly why. I would also like to give him the opportunity to think again before the policy hits its next phase in February.

From February, all new claims will be subject to the two-child policy, regardless of when children were born. That means that, although someone might have planned their family in good times, when they could well afford to support three children, the UK Tory Government do not care—they will support only two. Life is unpredictable: it only takes somebody to get ill or die, a partner to leave, or someone to lose their job for life to turn upside-down. We note the plight of the Michelin workers in Dundee, who were not expecting to lose their jobs. None of us would be prepared for such eventualities.

Contraception can also fail. I note research from the Advisory Group on Contraception, which has produced stark figures on cuts to sexual and reproductive health services in England, so help is being lost to many on the ground. I challenge any hon. Member present to plan out exactly and specifically the financial situation for them and each of their children up to the age of 18. It is impossible.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

My hon. Friend has been a tireless champion of tackling this issue. Does she agree that cutting child tax credits is tantamount to directly targeting children with austerity?

--- Later in debate ---

[Alison Thewliss]

I absolutely agree. It breaks the link between need and what somebody receives. These families are no less in need, but their money is being cut.

It is impossible for just about anyone, other than the super-rich and perhaps the royal family, to make plans in the way I described. The UK Tory Government are hacking away at the safety net that a social security system ought to be.

[Mr Jim Cunningham (Coventry South) (Lab)]

I congratulate the hon. Lady on securing the debate. Women are carrying the brunt of austerity—let us be frank about that—whether we are talking about nursery provision, tax credits or the Women Against State Pension Inequality Campaign. The list is endless. Women have made a major contribution in terms of austerity, in the sense that they have carried the burden of the £14 billion of tax adjustments. It is the same with the WASPI women and the savings that have been made on their pensions.

[Alison Thewliss]

The hon. Gentleman is absolutely correct. The Womens Budget Group has found that 86% of welfare cuts have come out of women’s pockets. The Government are taking a gendered and targeted approach, and they should be wary of that.

[Angela Crawley (Lanark and Hamilton East) (SNP)]

The charity Refuge found that the two-child limit is forcing domestic abuse survivors and their children into poverty as a result of an increased financial dependence on their perpetrators. Does my hon. Friend agree that women are ultimately fearful to leave abusive relationships because they cannot support themselves, and that that is another example of where the policy has gone wrong?

[Alison Thewliss]

My hon. Friend makes a good point, and I will talk about some of Refuge’s evidence later, because it is stark and the Government should take heed of it.

A social security safety net ought to be there for everybody—each one of us—when they need it, but by April 2018, the two-child limit had already affected 73,530 households. Well over half of those households—43,420 of them—were in work, so I will not have it if the Minister, or anybody else on the Tory Benches, which I note are remarkably empty, gives us the old Tory trope that the policy is about people on benefits making the same choices as those supporting themselves solely through work. The benefit is designed to give people in the lowest-paid work a top-up, to help support them and to make sure that their children are fed and clothed.

Of those 73,530 households, 2,900 were able to keep their entitlement for a third child by claiming an exemption to the policy. There are largely three exemptions to the two-child limit. None of them is entirely logical, and I would recommend that hon. Members check out the Child Poverty Action Group’s page on the exemptions to see how mind-bendingly arcane they are.

The first exemption is the rape clause. I put on record again my absolute disgust at a policy that forces women to fill out a form to say that they have conceived their third child as a result of rape. It is absolutely inexcusable as a policy. For someone to have to put their child’s name on a form and say that they were conceived as a result of rape is beyond contempt, and the Government should know better than to treat women in that way. We know from the figures that, up until April, 190 women across the UK claimed under that exemption. That is 190 women who have had to replay the most traumatic experience of their life to put food on the table. The Government should hang their head in shame.

The second exemption is for twins, but it is not as simple as it ought to be. It applies if twins are born after a single birth, but not before. If someone has twins after two previous children, only one twin is eligible for payment, but both those twins need to eat. There may be two almost identical families with three children—one that had twins and then a single birth, and one that had a single birth and then twins—but only one is worthy of support from the Government, which is completely illogical.

The third exemption is for adoption, but not if someone has adopted from abroad or if they were a step-parent before they adopted the third child, so that is not simple either. An additional exemption has been made for kinship care. I pay tribute to the hon. Member for Great Grimsby (Melanie Onn), who successfully campaigned for that on behalf of her constituent Alyssa Vessey, who lost an entitlement for her own child after taking on caring responsibilities for her three younger siblings. The clear result of the policy and the exemptions is discrimination. Families may have similar circumstances and needs, but some will lose out simply due to the order in which their children were born—something that those children certainly have no control over.

I understand that CPAG will be back in court on the issue before Christmas, and I wish it the very best with its case. It believes, and I agree, that the two-child limit breaches articles 8 and 12 of the Human Rights Act 1998. It is also beyond me how the limit could possibly be compliant with the UK Government’s obligations under the UN convention on the rights of the child.

There will also be an impact on blended families and families who may be encouraged to separate to avoid being hit by the limit. A friend also pointed out that women who have children from previous relationships will be caught should they wish to have a child with a new partner, which is very common, whereas the male partner may be able to go off and start a new family more easily without having the children with him.

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

Is it not depressing that we have debated this issue two Tuesdays in a row? I thank the hon. Lady for coming to the all-party parliamentary group on single parent families. She talked about blended families, which will be hit hardest. The Government abolished the cross-departmental work on child poverty; they are trying to abolish these things, but they have really mismatched priorities. The churches have been very vocal about it, and the Bishop of Oxford spoke last week. Does she have any comment about that?

[Alison Thewliss]

I absolutely agree, and I commend the hon. Lady and her colleagues for their work in the all-party parliamentary group on single parent families, because those families will be hugely hit by this. It provides huge disincentives for those families to go into work or to progress. It simply puts them further into poverty and makes it harder for them to get out of that poverty.

[Kate Green (Stretford and Urmston) (Lab)]

I congratulate the hon. Lady on securing the debate. Does she agree that this obscene policy is fuelled by the Government’s abolition of the child poverty target, which would have compelled them to look at such policies and realise that they could not possibly be compatible with such a target?

[Alison Thewliss]

Absolutely. I will return to the issue of the policy’s objectives and how unmeetable they are, given the child poverty that will result from the policy.

It is absolutely clear that nothing in the policy fits with the Government’s objective of giving people a more stable family life. In fact, it plunges families further into uncertainty and crisis, and puts them under tremendous strain.

It is also clear that it will be children who lose out as a result of this policy. It is estimated that this policy will affect—in time, when transitional protections run out—around 3 million children. The Church of England estimates that in my constituency alone 1,600 families and 5,500 children will be affected, which amounts to 36% of the children there. I cannot begin to say what impact this policy will have on the health, education and life chances of those young people.

[Carol Monaghan (Glasgow North West) (SNP)]

Once again, my hon. Friend is making a passionate speech on this issue. Does she share my concerns that there is another issue here, namely that families expecting a third child might be forced to have an abortion as a result of this policy? Often, those are people in faith communities, who are likely to have larger families.

[Alison Thewliss]

My hon. Friend is absolutely right, and there is clear evidence on this issue, which I will touch on later in my speech. The ends that this Government are forcing families into, and the decisions that those families are being forced to make, are really disturbing.

The cut in this benefit is £2,780 per child, per year, which is a sum that families will struggle to make up through taking on extra work. The Church of England calculates that a single parent with three children who is working 16 hours at the minimum wage—I should say the Chancellor’s pretendy “living wage”, because it is not an actual living wage that one could live on—would need to work 45 hours to compensate for the loss of income and for this Government’s cut. That is assuming that work is available to them in their community and that their children can be looked after by somebody when they are not home. If not, who will do the homework with those children? Who will tuck them into bed at night? Who will make sure that the family is looked after? And what is the mental health impact on that family and the impact on the physical health of the parent, who will be absolutely exhausted after working 45 hours a week and looking after three children, which is a job in itself? The impact on family life must be taken into consideration by the Minister.

There are also real disincentives within this policy, because it will be much harder for families to move into work. The policy will take away the incentive to try to get around the benefit cap, as families will end up losing more if they try to work more.

There is also a disproportionate hit on particular minority groups. The Equality and Human Rights Commission has found that families of Bangladeshi and Pakistani origin are particularly badly hit by this policy, losing thousands of pounds. For years now, I have been flagging up concerns that 60% of Muslim families and 52% of Jewish families have more than two children. There are also concerns, as my hon. Friend the Member for Glasgow North West (Carol Monaghan) mentioned, among religious faiths that will not use contraception for moral reasons and clearly cannot access abortion services. Therefore, they have very little choice in the decisions that face them.

Of course, this is a particular issue for women in Northern Ireland, where family size is traditionally larger than in the rest of the UK and where, as we in this House well know, women cannot access abortion services on the same basis as we can here. I wonder what the Minister expects women to do in such circumstances.

I want to mention a further point about abortion, because it is becoming the reality for many women. I would like to read directly from the testimonies of women who have spoken to the benefits helpline, Turn2us, because they are absolutely stark and I want the Minister to pay particular attention to them. One woman said she had

“to have an abortion as”

she “can’t afford” another child. Another said:

“It makes me want to give up my child for adoption.”

Another woman said she was:

“already due another baby when the new tax credit cap came into play. Now I worry I can’t afford to budget for a baby as I won’t get any extra help.”

Another said:

“I found out I was 5 months pregnant and now in a complete panic. I’m too far on for an abortion but I have no way of supporting this child. I was taking precautions and definitely did not plan or expect to have any more children. The marina coil is meant to be more effective than being sterilised.”

One woman said she was

“worried that I will not be able to afford the child. I am pregnant at the moment but I am worried it may be twins.”

Another woman said:

“I was already pregnant so I could not reconsider.”

Another said:

“I didn’t plan this child but it’s beaten all the odds to get here and I believe in things happening for a reason and also do not believe in abortion, so here we are expecting our 3rd child any day and no help financially. I have worked since I was 15 years old and I can’t get help when I need it.”

Another woman said:

“This was a surprise and an unplanned pregnancy and I only found out at 20 weeks that I was pregnant due to an NHS mistake and I don’t have the money to raise a child. But due to religious reasons I cannot terminate the pregnancy, especially this far along.”

How can the Minister possibly justify that? Could he look each woman in these circumstances in the eye and tell them that this policy is about fairness?

Furthermore, Refuge has outlined the risk of this policy to women who are at risk of domestic violence, because the two-child limit exacerbates the control that perpetrators of abuse have over a woman and puts more pressure and risk on the woman. [Interruption.] I would like to share that experience, too, with the Minister, if he wants to stop shuffling his papers and pay attention. Refuge has said:

“Women have felt more trapped and unable to stay as there was no available money to help them move and leave. The 2 child cap means that some women will be pressured into having more children and becoming financially reliant on the partners for support.”

One resident said that

“whilst pregnant with a 3rd child her ex demanded she have an abortion because he said they could not get any more money for it and when she said she didn’t”

want one

“he tried being violent to enforce a miscarriage.”

Refuge also said:

“Women struggling to manage after fleeing if they have three children feel like they have no support and no money to support the family. It means they feel like they should stay or return to the perpetrator.”

I remind Members that the rape clause form itself states that women are not eligible for support if they are living with the father of the child, which forces women to leave their home before they can do so safely, and we all know that the evidence suggests that that is the most dangerous time—the time that women are most likely to be murdered—if they leave without any kind of safety planning.

Before I finish, I want to tackle the suggestion that the Scottish Government should set about mitigating the two-child limit. First of all, we do not have full control over the welfare benefits system. Why not? Because Labour, through the Smith Commission, would not trust us to have it. We therefore end up being lumbered with a system that Scotland did not design, with policies that Scotland did not vote for, and with the ability only to tinker round the edges, thanks to the work of the Labour party.

For those on child tax credits, which is still the majority of people within the system, we have no way of mitigating these things, because that is a function of Her Majesty’s Revenue and Customs. For universal credit, at the moment we have “administrative flexibilities”. The Scottish Government have changed payment schedules and allowed for direct payment to landlords and separate payments to tackle financial abuse. However, the use of those flexibilities incurs a payment to the Department for Work and Pensions for the administration of them—money I am sure all of us agree could be spent directly on the frontline.

I want to make it absolutely clear that I want this policy to go everywhere and not just throughout Scotland. I have campaigned on a cross-party basis to that end, particularly for women in Northern Ireland, who have often been unrepresented in this place and who have to fill out a separate rape clause form, because they were at risk of prosecution just for filling out the original form. That is why I want to make sure that no woman in the UK gets left behind by this policy. We should be campaigning against this Tory Government and focusing all our fire on the Conservative party, which wants to make women go through this trauma.

However, let us not forget that the Labour party’s official position back in 2015 was to support the two-child limit. Perhaps if Labour Members had voted with us back then on the Welfare Reform and Work Act 2016, we would not be here—three years, four months and 20 days later—discussing this issue today.

[Kate Green]

rose—

[Alison Thewliss]

I am coming to the end of my remarks; I am sure that Members will get in later with what they want to say.

All of this policy is illogical and bad for the economy. In other parts of my casework, I see working people being denied leave to remain with their families. I see EU nationals being scunnered and moving away from the country that they had called home, due to this UK Tory Government’s Brexit shambles. On DWP policy, I see people being discouraged—actively discouraged—from having children. Who will participate in the labour market in the future? Having children is an economic good. Who will look after the Minister and his family when he is old and in need of care? The UK Government should wise up to the demographic time bomb they are creating with this policy and so many other policies that make no sense. The “Unhappy Birthday!” report produced by End Child Poverty, the Child Poverty Action Group and the Church of England states:

“If you set out to design a policy that was targeted to increase child poverty, then you could not do much better than the two-child limit.”

I would like to know what assessment the Minister has made, other than the numbers released in April, of the impact of the two-child cap on all the areas I have mentioned in my speech—not just one or two of them, but all of them—because there are still too many flaws in the two-child cap, as I have laid out, and as I am sure other Members will wish to. I want to know how he can roll this policy out without that assessment having been done. The assessment has been left to the third sector, the Church—as the hon. Member for Stretford and Urmston (Kate Green) pointed out—and to so many other organisations. The Government have not taken on this work; they have left it to others to do, which is absolutely unacceptable. They need to know what the impact of their policies will be on the ordinary people we represent.

I also want the Minister to explain why he is pressing ahead with extending this policy to all families come February next year, because, on the basis of this policy, people could not reasonably have planned the children that they have had. It is completely unreasonable to expect somebody in good times to think, “Perhaps six or seven years after I have had my child, I might—might—be made unemployed and I might need to claim universal credit.” That would not be in their head; that is not how people make decisions about their families. It is an absolutely flawed notion that people can do that. I want the Minister to pause and reflect, and to tell us that he can pause the policy, stop it rolling out further and end it for good.

[Several hon. Members rose—]

--- Later in debate ---

[Alison Thewliss]

I thank all hon. Members who have come along today and contributed to the debate. The opposition to the policy is overwhelming; the fact that not one Tory MP could be bothered to turn up and defend it tells us all we need to know.

The Minister continues to be in denial about this indefensible policy, which takes no account of people’s circumstances, instead punishing them for circumstances that they can do nothing about. It is based not on the reality of people’s lives but on an entirely twisted perception that poor people should not have children and that women should be forced into having abortions rather than proceeding with healthy pregnancies.

There is overwhelming evidence of the harm that the policy will cause. Figures suggest that it will move the dial on child poverty from 33% to 42%. It has united people across all faiths and all women’s organisations around the country—a very unusual thing to achieve. It leaves people in a poverty trap; as has been outlined, a single mum with three kids would have to work a 45-hour week to make up the gap that the Government are leaving in her budget.

I plead with the Minister, as we have all done today. He has the option to halt the policy and prevent it from proceeding in February. I beg him to do so.

Motion lapsed (Standing Order No. 10(6)).