Universal Credit (Removal of Two Child Limit) Bill

Desmond Swayne Excerpts

Tuesday 3rd February 2026 Commons Chamber

[Pat McFadden]

I will come on to the timing of our decision, and exactly why it is right.

[Sir Desmond Swayne (New Forest West) (Con)]

rose—

[Pat McFadden]

Not at the moment.

As I said, around half the families who will benefit were not on universal credit when they had any of their children. These are people who found themselves in need of help long after any decisions about family size had been taken.

No account was taken of the costs of the policy further down the line, such as lower educational attainment, worse mental health and lower earnings, perhaps for the whole of people’s working lives.

--- Later in debate ---

[Sir Desmond Swayne]

rose—

[Pat McFadden]

The right hon. Gentleman is very keen, so I will give way.

[Sir Desmond Swayne]

It appears that those 300,000 were in poverty a year ago, but the Secretary of State has allowed that to persist till now. What has changed? It is not the fiscal situation, and it is not any room in the benefits budget. This is the Labour equivalent of Project Save Big Dog, is it not?

[Pat McFadden]

Timing matters, and if the right hon. Gentleman shows a little patience, I will tell him exactly why we have done this in the timeframe that we have.

All the policy did was force more children into poverty, alongside the Conservatives’ other key welfare measure of trapping the sick out of work. Even some voices on the right recognise the damage that this policy did. Former Tory Welfare Minister Lord Freud described it as “vicious” and said it had been forced on the Department for Work and Pensions by the Treasury at the time, and the former Conservative Home Secretary and new recruit for Reform, the right hon. and learned Member for Fareham and Waterlooville (Suella Braverman), has said,

“Let’s abolish the two-child limit, eradicate child poverty for good”.

I do not know whether that is still her position—we will find out at tonight’s vote—but it seems that the party she has now joined wants to restore the two-child limit. Reform is importing not just failed Tory politicians, but failed Tory policies.

Between 2010, when the Conservatives came into office, and the summer of 2024 when they left it, the number of children in poverty had risen by some 900,000. That is something to ponder as Members on the Opposition Benches have their debate about whether or not Britain is broken. If it is, who was responsible? Who designed the welfare system that they tell us on a daily basis is broken? They did. Who broke the prisons system that we have had to rescue? They did. Who shook international confidence in our economy and its key institutions? They did. This is the inescapable problem with the Conservatives’ current position: an attack line that says, “We trashed the country and left you with a terrible inheritance,” might just not be the winning argument they think it is. Let them have their debate about whether Britain is broken while we get on with the task of fixing what they left behind.

--- Later in debate ---

[Helen Whately]

Unfortunately, the hon. Lady does not seem to understand that hypothecated taxes are not a thing. What she has said simply does not make sense. The fact is that this Bill will cost the Government money, so it will cost taxpayers money, either now or in the future. That is simply the way it works.

[Sir Desmond Swayne (New Forest West) (Con)]

I have a question too.

[Helen Whately]

I would be delighted to hear it.

[Sir Desmond Swayne]

We now hear shouts of “cruelty” and “the rape clause”, but I see only one of the seven who were suspended sitting on the Labour Benches. The rest of them kept their heads down and voted to perpetuate what they now call cruelty and the rape clause. How do they sleep at night?

[Helen Whately]

My right hon. Friend has indeed made a significant point about the strange position in which so many Labour Members find themselves. Having previously voted against lifting the cap, here they are now, delighted about lifting it.

Labour Members say that the Bill will end child poverty. They have read that increasing handouts will decrease the metric called relative poverty. However, relative poverty is a deeply misleading measure. It is not an accurate measure of living standards. It tells us nothing about whether people have enough to live on, or whether children will have better life chances. It can get worse when the country gets richer, even when living standards for the very poorest are rising, and it can look better when people are getting poorer. That is not progress; it is levelling down. Throwing money at one flawed metric is not a strategy. In fact, it risks doing the opposite of what Ministers claim to want, trapping families in long-term dependency rather than lifting them out of it.

There is a proven way in which to improve children’s life chances, and that is work. Work allows parents to provide for their families, to pay the rent or mortgage, to put food on the table and clothes on their children’s backs, to set an example to their children, and to create structure and routine in their households. The Centre for Social Justice has found that children in workless households are four times more likely to be materially deprived, but under this Government the number of children growing up in workless households has risen at the fastest rate on record, and has now reached 1.5 million. Contrast that with our record, Madam Deputy Speaker. From 2014 onwards, the number of children in workless households fell year on year. We lifted a million people out of absolute poverty, including 100,000 children, and we drove unemployment down to historic lows.

Under this Labour Government, unemployment is rising month after month, so, sadly, the number of children in workless households will continue to increase. Inflation is up as well, to almost double the level that the Government inherited. Higher inflation means that the money in your pocket is worth less: in other words, you are poorer. Fewer jobs, more unemployment, a higher cost of living—that is what the Government are doing to people. I say this to them: you do not lift children out of poverty by making the whole country poorer.