Universal Credit and Child Tax Credit: Two-child Limit

Kate Green Excerpts

Tuesday 27th November 2018 Westminster Hall

[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.

--- Later in debate ---

[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.

--- Later in debate ---

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

It is always a pleasure to serve under your chairmanship, Mr Streeter. I congratulate the hon. Member for Glasgow Central (Alison Thewliss) on her tireless campaign on this very important subject and on securing today’s debate.

The issue sits in the context of the wider debate about universal credit, which will affect 1 million homeowners, slightly fewer than 750,000 households on disability benefits and 600,000 single parents. On universal credit, two in five households will lose about £52 a week in payments, and across many constituencies entire families will be severely affected—if they are not already. In areas where universal credit has already been rolled out, food bank use has increased by 52%. As the hon. Lady said, as part of the 2015 package, from April 2017 low-income families with a third or subsequent child lost their entitlement to additional support through child tax credits.

[Kate Green]

Does my hon. Friend agree that contrary to what the hon. Member for Glasgow Central (Alison Thewliss) suggested, Labour did not support the two-child limit? We abstained on the Second Reading of the Welfare Reform and Work Bill but voted against Third Reading. Does she agree that we should place that on the record?

[Rushanara Ali]

I concur. It is really important that the Scottish National party, the Labour party and other parties that oppose the policy continue to work together, so that we can protect families. More families will be affected from February next year, as universal credit is rolled out, and the retrospective element, which the hon. Member for Glasgow Central mentioned, will be devastating. No family could have prepared for a policy that was to be applied retrospectively; nor is it right that children should be retrospectively punished in that way. This, in short, is a punishment of children, and it is totally inhumane. No Government should be standing up for such a policy. Given that the Minister has recently taken on his role and the policy was not his idea, I urge him to reflect carefully on what is being said and on the representation being made to him, to ensure that the policy is reviewed and reformed.

If the Government are concerned about family size and think that families should not be as large as they are, just as with teenage pregnancy, public education exercises can be more successful than punitive measures that punish children. In developing countries, where there is a case for encouraging smaller families because families cannot provide, family sizes have been brought down through education and women’s empowerment, but that is a different debate from what is happening here.

Philip Alston the UN’s special rapporteur on extreme poverty and human rights recently said of the two-child limit that it is “in the same ballpark” as China’s one-child policy, because it punishes people with more than two children. Reports also state:

“The UK government has inflicted ‘great misery’ on its people with ‘punitive, mean-spirited, and often callous’ austerity policies driven by a political desire to undertake social re-engineering rather than economic necessity, the United Nations poverty envoy has found”.

It cannot be right that in one of the wealthiest economies of the world, our children face hunger and punishment.