Universal Credit and Child Tax Credit: Two-child Limit

Carol Monaghan Excerpts

Tuesday 27th November 2018 Westminster Hall

[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.

--- Later in debate ---

[Danielle Rowley]

I agree with my hon. Friend.

[Carol Monaghan]

Will the hon. Lady give way?

[Danielle Rowley]

I only have two minutes left, so I must press on.

The SNP have argued against covering for Tory welfare reform, and I agree that it should not exist in the first place; but such political posturing helps no one. The powers of the Scottish Parliament should be used to stop families struggling.