Working Tax Credit and Universal Credit: Two-Child Limit

Debate between Alison Thewliss and Imran Hussain

Thursday 21st April 2022 Westminster Hall

[Alison Thewliss (Glasgow Central) (SNP)]

I beg to move,

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

It is a pleasure to see you in the Chair, Mr McCabe. You are quite right to point out that, while other debates might be happening, this debate is actually quite important. It has been six years, nine months and 13 days since the Budget in 2015, when the two-child limit appeared in the Red Book, and just over five years since it came into force. Some might be wondering why I am bothering to come here today to complain about this policy; it is because, for me, it is a fundamental injustice and deserves to be looked at seriously.

The Child Poverty Action Group and the Church of England estimate that 1.4 million children in 400,000 families are now affected by the two-child-limit policy. Unless it is abolished, the number of children affected will reach 3 million, as more children are born under the rules.

The two-child limit for child tax credits and universal credits broke the long-standing link between need and entitlement, on the basis that families in receipt of state support ought to face the same choices as those supporting themselves solely through work. This is a false narrative; it is the myth of the benefit queen. This policy has never been about fairness.

The majority of families affected by the policy are in work—low-paid jobs, working to support their families. In mentioning that fact, I do not seek to stigmatise those not able to work—many have caring responsibilities, disabilities or other reasons that prevent them from working. They ought to have the protection of the social security system, too.

In many cases, it is all but impossible for those who are working to take on more hours to make up the drop in income created by the two-child limit. The Work and Pensions Committee pointed out that the cost of childcare can also mean that families will not be able to make up the loss by working more hours. The two-child limit is a poverty trap.

Many people are just not aware of the policy, which is a significant issue. They do not know that it will apply to them. The Government intended to influence people’s choices to have children, but they have certainly not been influenced in any meaningful way by a piece of Department for Work and Pensions legislation.



The latest research by Mary Reader, Jonathan Portes and Ruth Patrick on whether cutting child benefits reduces fertility in larger families establishes that the two-child limit is not leading to any major reductions in fertility among those likely to claim benefits. All the policy does is punish people for their circumstances and drive up child poverty rates.

[Imran Hussain (Bradford East) (Lab)]

I thank the hon. Member for bringing a very important debate to this Chamber. The reality is that this Government’s ideological, intentional austerity agenda, more than a decade long, has led to the biggest cost of living crisis in our generation and rampant poverty on our streets. Does the hon. Member agree that it is policies such as this that lead to children going hungry in our constituencies, and that is why it needs to be scrapped immediately?

[Alison Thewliss]

I absolutely agree. That poverty is deep and enduring, and prevents those children from reaching their full potential. We cannot forget the choices that many families are having to make because they just do not have enough money coming in.

No one can predict the course of their lives, certainly not the course of their children’s lives, and nobody can plan for absolutely every eventuality—it is just not the reality of life. CPAG estimates that, during the pandemic, an additional 15,000 families, who never envisaged losing their jobs and incomes in a global health crisis, were affected by the two-child limit, as they claimed universal credit for the first time. That includes people who worked in sectors that shut down and have yet to recover, people who tragically lost their partners to covid and people who still suffer the effects of long covid. Domestic abuse rates increased during the pandemic, which resulted in some families separating for good. In each of those scenarios, families with more than two children were not afforded the dignity of the support they required, because the Conservatives made a judgment back in 2015 about the appropriate size of a family for benefit claimants.

Immigration

Debate between Alison Thewliss and Imran Hussain

Wednesday 26th June 2019 Commons Chamber

[Alison Thewliss]

The hon. Gentleman is correct, and I see it regularly—week in, week out—in my surgeries.

People who have visited the UK on multiple occasions without incident and with no problems, and who are well able to afford the cost of supporting themselves when they come to visit—not that their family would not support them, anyway, because they are guests—are refused time and again. It is offensive, and people are hurt by this. They miss out on family visits and family occasions such as weddings and graduations. They miss out on so much family life that we all take for granted. If any of us wanted to go to any of their countries, we would be allowed to travel. That is the inherent racism of the Home Office and its policies.

[Imran Hussain]

The hon. Lady is making a powerful case, particularly on visitor visas and the Home Office’s poor decision making. I dealt with a case in which there was a discrepancy of one penny between the P60 and other evidence, so the application was refused and the person could not attend an important family wedding. Again, that illustrates the hostile environment created by this Government through the back door.

[Alison Thewliss]

It does, and the hon. Gentleman is absolutely correct. I see this day in and day out at my surgeries.

More recently, a case has been highlighted in the press—it very much seems that the press is the way to go for those with a complaint about the Home Office, and if I were to do that the pages of all the Scottish newspapers would be full of my constituents—of a group of blind musicians who came over from Chennai as part of a British Council, Creative Scotland and Scottish Government-funded project. They were asked to come over from India as part of that project, and two of the musicians were refused entry. These two blind musicians were told that they did not have sufficient reason to go back to India after the trip. Their carers were allowed in, but these people with disabilities were not. Because their case was highlighted in the press, the decision magically and mysteriously changed, but it was too late because the event had passed.

The group are now £4,000 out of pocket for flights that had to be cancelled. Will the Minister compensate this group of musicians from Chennai who were not able to travel to take part in a British Government project? That is no less than they deserve. She has wasted taxpayers’ money, and she has wasted these young people’s opportunity by refusing them entry and then cynically changing the decision when the case appeared in the press.

I have good grounds to believe that the Government pay attention to the cases that appear in the press and change their decisions. The UK Government deemed a number of people in the highly skilled migrants group, because they needed small and legitimate changes to their tax returns, to be in some way of bad character and a threat to national security under paragraph 322(5) of the Home Office rules.

The cases that I have highlighted in the press, and the cases of constituents who were on “Channel 4 News” and in the newspapers, were decided a full six months quicker than those of constituents whose cases I could not put into the press due to sensitivity. I would like an explanation from the Minister of why very similar cases, with very similar circumstances, were differently decided because two of them were in the media and two of them were not. The UK Government’s decision-making process on this is deeply disturbing.

The same goes for many other cases I have highlighted in the Scottish press. I have a lot of reason to be thankful to people in the Scottish media, at The National and at other publications in Scotland, because they have repeatedly highlighted the terrible decisions made by the Home Office.

I chair the new all-party parliamentary group on immigration detention, and trauma has been caused to my constituents by persistent and arbitrary detention. There seems to be a modern-day cat and mouse act, with people being arrested under immigration detention and then let go. The impact on those individuals is traumatic and appalling, and these are people who have been through a huge amount of trauma already. They have been tortured and trafficked. They have seen things that none of us would ever want to see, and they are being locked up with no time limit.

People can accept being in prison if they have done something wrong, and they know when their sentence will end, but people in this country, quite uniquely, are held in immigration detention with no end in sight. I ask the Minister to consider why she thinks that is fair. I pay tribute to the strength and dignity of those with experience of immigration detention who came to last night’s launch of the all-party group to tell their stories. People in arbitrary detention do not know for how long they will be locked up, even though they have done nothing wrong. That is a stain on this Government and previous Governments who endorsed places like Dungavel.

We need to do so much more to highlight the plight of people held in immigration detention. We must make sure that we do all we can for people who come to this country fleeing persecution and FGM and looking for a place of sanctuary. We must not, by this Government’s actions, cause them further trauma and further pain. Instead, we must protect them and welcome them with open arms.

We are celebrating a refugee festival in Scotland this week. We are celebrating all the things that refugees and asylum seekers bring to this country, and the Government would do well to attend more such events to celebrate people, rather than locking them up, detaining them and causing them pain.