Universal Credit (Removal of Two Child Limit) Bill

Liz Jarvis Excerpts

2nd reading & Money resolution
Tuesday 3rd February 2026 Commons Chamber

[Liz Jarvis (Eastleigh) (LD)]

Scrapping the two-child benefit cap is the single most important action this Government could take to improve outcomes for children in poverty. My Liberal Democrat colleagues and I have called for it consistently, so I am pleased that the Government are finally taking this step. Children and young people in Eastleigh and across our country have paid the price for a policy that was never about fairness, but instead about cutting support to the families who are often struggling the most. This cruel, shameful policy should never have been introduced in the first place. I reiterate that circumstances can change in a heartbeat: redundancy, bereavement or discovering that a child needs special care, meaning that a parent has to give up work—these life-changing events can all have a huge and sometimes devastating impact on household income.

According to the End Child Poverty coalition, 20.6% of children in Eastleigh are growing up in poverty. These experiences in early childhood shape outcomes for life, affecting health, educational attainment and future earnings. Without further action, over 4 million children in the UK will still be growing up in poverty by 2029. Housing costs, inflation—particularly food inflation—and high energy costs continue to be central drivers of hardship.

The Department for Work and Pensions’ own impact assessment has found that around 50,000 low-income families currently affected by the two-child benefit limit will gain nothing when it is lifted in April. A further 20,000 will see their incomes lift only partially from April, due to having their income raised to benefit cap level. What further measures will the Minister take to ensure that all children can fulfil their full potential? Citizens Advice Eastleigh recently advised a single parent whose universal credit was reduced by nearly 30% due to the benefit cap, which, combined with her high rental costs, left her with only £400 a month to feed and clothe her children and keep them warm. Charities in my constituency and across the UK say the same thing: the Bill on its own, while welcome, is not enough.

A fair society does not balance its books on the backs of children. It is frankly astonishing that the Conservatives would reinstate the two-child benefit cap. According to the Institute for Fiscal Studies, the Conservatives’ policy did not have a significant impact on labour supply and has not considerably affected fertility decisions, so the only thing it did was to drive more children into poverty. What a terrible legacy that is. I wonder what they would say to the 72% of children living in poverty who are in working families, and the families with three or more children who are in poverty through absolutely no fault of their own. A fair society protects its children, invests in them and gives every child the chance to thrive. That is why I support this Bill, and why I will continue to press for further action until child poverty in this country is eradicated once and for all.