Universal Credit (Removal of Two Child Limit) Bill

Lizzi Collinge Excerpts

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

[Lizzi Collinge (Morecambe and Lunesdale) (Lab)]

When the Labour Government came to office, 4.5 million children were living in poverty, and I believe that that is a moral stain on our nation. It has been a central mission of this Labour Government to tackle child poverty in all its forms. They are taking a range of measures, like introducing breakfast clubs. We have had some fantastic pilots of those in my constituency, and we have heard from schools that provide them that attendance is improving as a result. That is yet another impact of tackling childhood shortages. The Government are also extending free school meals to more children, while family hubs will help families who are struggling to get the support they need, and of course, there is more childcare support for working parents, who are too often kept out of work by the high costs of childcare.

Today, though, we are talking about ending the two-child limit on universal credit. This measure alone will lift nearly half a million children out of poverty, and in my constituency of Morecambe and Lunesdale about 1,900 kids will benefit. It is not just the right thing to do, in and of itself; the evidence shows that tackling poverty in childhood is more cost-effective than mopping up the damage later—the damage of poverty that was outlined so eloquently by my hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams). The fact is that poverty kills. It is as simple as that.

Some will say that poverty is caused by fecklessness or laziness, ignoring the 70% of children affected by this limit who live in working households; ignoring the fact that 15% of those affected by the cap are mothers with really young babies—mothers who we would normally not expect to work; ignoring the significant number of people affected who are in ill health or have caring responsibilities; and ignoring the fact that the cost of living crisis, which was brought upon us by the Conservatives and by reliance on foreign gas, means that people who could afford their children when they had them are now struggling to put food on the table.

About six months after the election, I knocked on a door in Morecambe, and it was opened by a lady who was really distressed. Once I got talking to her, it turned out that she had five kids. She said to me, “I could afford those children when I had them. I would never have had these children had I not been able to afford them.” She worked days, her husband worked nights, and she was on the minimum wage. They were struggling to prevent their children from finding out just how difficult a financial situation they were in. I was able to tell that lady that in a few months’ time, thanks to the Labour Government, she would receive a pay rise, because we were putting the minimum wage up—yet another measure that we are taking to tackle child poverty.

[Josh Fenton-Glynn]

One of the most distressing things that I discovered when I was working at Church Action on Poverty and talking to parents of children in poverty was how often mothers went without food. My hon. Friend has talked about families struggling so that their children did not find out. Does she agree that that is what we are changing today, and that that is the reality of this policy?

[Lizzi Collinge]

My hon. Friend is entirely right. Parents, in my experience, will do anything to protect their children from the harsh realities of life. It is parents who go without food. It is parents who have to go to the food bank. I remember the first time I met the people running the food bank in Morecambe, in 2017. I walked up to them and said, “One day, I will put you out of business.” And they said, “Thank you”, because their strategic aim is not to exist. Food banks should not exist.

Some of the people who oppose the lifting of this limit are also willing to ignore the fact that the policy itself did not work on its own terms. It did not limit the number of children born, but merely condemned them to living in poverty. They are also willing to ignore the evidence that dealing with poverty in childhood is much more cost-effective than mopping up later. It prevents huge costs later down the line in terms of education, health or indeed the criminal justice system.

I am not saying that there are no feckless parents. Of course there are feckless parents, and there have always been feckless parents. I remember my great-grandma telling the story of having to go to the pub on a Friday night to try to get the housekeeping money off her drunkard father. She used to tell it as a funny story with a smile on her face, but it was not funny then and it is not funny now. I was really quite shocked at Reform saying that it would keep the two-child limit on universal credit and instead put that money into reducing the cost of beer. I love a drink—do not get me wrong—but I cannot help but think that, if Reform Members were around 100 years ago, they would have been standing with my drunkard ancestor, rather than with the little girl with her hand out for the housekeeping money. Do we condemn hundreds of thousands of children to poverty because there are a few feckless parents?

[John Slinger (Rugby) (Lab)]

Does my hon. Friend agree that fecklessness is not a trait exhibited only by poorer people in our country?

[Lizzi Collinge]

I absolutely agree with my hon. Friend that fecklessness is not limited to any one socioeconomic group. It is interesting how people born into great wealth consider their position to be due only to their very hard work, yet they consider it to be other people’s own fault if they are born into poverty. That is really quite shocking.

More than 1 million children live in households unable to afford even the most basic necessities of life. There are parents choosing between heating and eating, children doing their homework on the floor in housing that is too crowded to provide a space to study, whole families staying in one room because that is all they can afford to heat, and kids wheezing due to damp. What compounds this heartbreak is that childhood poverty festers and grows. It infects people’s prospects in education, health and employment across their whole life.

Rather than tackling that, discussions about welfare inevitably descend into conversations about merit: who deserves help and who does not. These are children we are talking about—children entirely reliant on adults for their existence and their support, and entirely reliant on Governments such as ours to make sure they are looked after if, from no fault of their own, their parents do not have enough money for the necessities of life.

If this Victorian attitude to the deserving and undeserving poor had won the day previously, we would not have had any of the public services that we now take for granted. We would not have had free education, because why should parents not just pay for education themselves? We would not have had the NHS, because why should people not just pay for doctors themselves? As we know, Reform Members would be very happy to get rid of the NHS and bring in a private insurance system. None of us earned those things through our own merit; we inherited them from people who recognised that everyone deserves a good chance in life and the chance to thrive and succeed, whether by starting their own business, getting an education or doing whatever it is that will make their life a good life. That is the obligation we have to our children.

The Joseph Rowntree Foundation and others have shown that scrapping the two-child benefit limit could drive the single largest fall in child poverty in a single Parliament. My local Citizens Advice has done a brilliant report saying that scrapping the two-child limit is the fastest and most cost-effective intervention to tackle child poverty.

[Stuart Anderson]

The hon. Member is making an impassioned speech. If the Joseph Rowntree Foundation says that this will be the biggest change made in a Parliament —a full parliamentary term—why are the Government doing it now after refusing to do it 18 months ago?

[Lizzi Collinge]

That is actually a reasonable question. The answer is that we had to make sure the country could afford it and we had to take a strategic approach to tackling child poverty. What we were not going to do, given the absolute state of the economy when we came into government, was make very quick decisions on such a scale. We did it properly, carefully and as part of a strategy. [Interruption.] I am interested by Opposition Members’ interpretation of reality.

Let us not forget—moving on to something else that seems to have been missed in this discussion—that the families hit hardest by the two-child limit are those who spend the largest share of their income on absolute essentials. Lifting those families out of poverty not only reduces hardship, but actually boosts the local economy in the same way that raising the minimum wage does. In Morecambe and Lunesdale, I have thousands of fantastic small local businesses who rely on local people having enough money in their pockets to go out and spend, whether it is in the corner shop, the local supermarket or the clothes shop on the front where I get my kids’ school uniforms. They rely on people spending and we know that people who are hard up spend every single penny that they have. I have spoken in this Chamber before about the cost saving of prevention. This measure is no different. Investing in our children now pays dividends later, improving educational outcomes and raising adult earnings.

Even if, in the face of all contradictory evidence, we accept the myth sown by the right that all the parents affected by the cap are somehow scroungers and feckless, I still do not believe that their children should have to live in poverty. Using children as pawns to influence parental behaviour or illustrate moral lessons not only does not work, it is profoundly unjust. And it did not work. Even by its own logic, the two-child benefit limit has been woefully ineffective. Back in 2019, a cross-party Work and Pensions Committee found “no evidence” that it was working as intended. It had next to no effect on employment rates and hours worked in affected households, and the stated effect on birth rate is so tiny that it is doubtful that it is greater than the margin of error in the data. The cap has not led to greater employment rates or a higher number of hours worked. What the cap has done is make childcare and travel costs an even higher barrier for those households who are trying desperately to work more.

The two-child benefit cap also assumed that all pregnancies are planned, in full knowledge of the Government’s social security policy. I do not know about others, but most people I know are not over the details of social security policy. We know that it is simply not true that all pregnancies are planned. We know that contraceptives fail. Stuff happens. I remember when Tony Blair had an oopsie baby in the ’90s. With apologies to the Blairs for referring to them, I remember my dad saying, “Well, if the Prime Minister can’t always get it right, how we do expect every single person in the country to do so?”

We also know—it became really clear from the previous Conservative policy—that a startling number of children are conceived through rape. The policy meant that traumatised women were having to disclose their rape to faceless bureaucrats just to try to get enough money to raise the child who had been conceived through rape. That is surely compounding the trauma of survivors of sexual assault.

Finally, our country’s future depends on investing in the potential of our children—all our children, wherever they were born and however they were conceived. Today, we are saying that there are no second-class children in Britain and that under a Labour Government child poverty is not an inevitability. It is a choice and we choose to end it.

Universal Credit and Personal Independence Payment Bill

Lizzi Collinge Excerpts

Committee of the whole House & 3rd reading
Wednesday 9th July 2025 Commons Chamber

[Neil Duncan-Jordan]

That intervention is further evidence that our welfare system is not working. I understand that some Members may consider voting for this Bill tonight because of the proposed uplift to the standard rate of universal credit. Disabled groups that I have met are clear that that is not worth having if it is to be done at the expense of other disabled people further down the line. Members will have seen the letter yesterday from the UN committee on the rights of persons with disabilities, which has raised serious concerns that the Bill will deepen the signs of regression in disabled people’s human rights. The answer therefore remains that clauses 2 and 3 of the Bill need to be removed. We should allow the Timms review to look at all aspects of the benefits system and report back next year. That is what disabled people and their organisations want, and that is what I will vote for.

[Lizzi Collinge (Morecambe and Lunesdale) (Lab)]

Last week, I voted against the Government because I was not happy with the proposals on the table. When the Bill was initially put forward, I was particularly concerned about the proposed changes to PIP eligibility criteria, which in my view were arbitrary and risked taking support from those who need it most. I am glad to say that the Government have listened and acted.

As a result of Government amendment 4, which will remove changes to PIP eligibility, alongside making other positive changes, I can now—carefully and with reservations—support the Bill as amended. The removal of changes to PIP eligibility criteria from this Bill protects carers and prevents the consequential loss of carer’s allowance. As a former carer, that is important to me.

I have put a lot of thought into this issue over the preceding weeks. I have listened to my constituents, and I have been thinking about what is important to them. Not only have the amendments removed the changes to PIP that I was worried about, but the Bill will now include vital increases to the basic level of universal credit. I do not feel able to vote against that today.

We inherited a heck of a mess from the last Conservative Government, and I do not think anyone disagrees that there is a need for change. We need a system that is well designed, that works, and that is fair to both claimants and other taxpayers, so I welcome the ministerial review of the PIP assessment. Co-production with disabled people and the organisations that represent them is particularly welcome. Conducting a thorough review in genuine co-production, leading to well-thought-out proposals for reform, is the right thing to do.

[Simon Hoare]

With the greatest respect, the hon. Lady is putting the cart before the horse, as are the Government. You do your review first, you find out what it says, and you tailor your policies and your response to it. Is that not the best way of making policy? This half-baked idea satisfies no one.

[Lizzi Collinge]

I think the hon. Gentleman has missed the bit where the Government are taking out clause 5 and the measures on the PIP eligibility criteria, and are doing the review first, but I thank him for his intervention.

I will hold the Government to account for their promises about the review. I also endorse the comments of my hon. Friend the Member for Penistone and Stocksbridge (Dr Tidball), and support her new clause 11.

This debate has involved a huge raft of different issues, and they have been conflated at times, so before I talk about the other changes that I support, I want to emphasise that PIP is not just an out-of-work benefit. It is claimed by people both in and out of work, and it is there to help with the extra costs associated with disabilities and long-term conditions. However, there is also a huge disability employment gap, and a great many people who want to work cannot, simply for lack of a bit of support—some health treatment, or an employer who will make reasonable adjustments. I am therefore pleased that plans for employment support have been brought forward, and that there will be extra investment earlier.

I should make it clear that my concerns always focused on a small part of the broader reform package, but for reasons of time, I will not go into them. These are vital steps towards fixing the system. I will not say that I have no concerns left—I have, which is why I support amendment 17, tabled by my hon. Friend the Member for Dunfermline and Dollar (Graeme Downie)—but no policy or solution will be perfect. No Green Paper can address everything, and no legislation can get everything right.

In these past few weeks, I have been reminded of something that my friend Joe once said to me: “Politics is not a game to be played. It’s people’s lives, and people’s lives matter.” No wonder our constituents have so little faith in our political system, when what should have been a debate about the rights and wrongs of a policy and about the lives of those constituents has turned into a debate about the Westminster bubble, not the people we serve. The Westminster bubble ought to be popped, and quickly.

The views of the House have been made clear over the last couple of weeks, and I am glad that the Government have listened. I will always speak out, as I know my colleagues will, without fear or favour, and we will always fight for a better, fairer welfare system for everyone.

[Andrew Pakes (Peterborough) (Lab)]

I rise to support the removal of clause 5 and the associated amendments, and to comment on a few other amendments, based on what I have read and learned.

Many things have been said in this debate, in the Chamber and outside, but it is undeniable that the system is not working for far too many people. We see a welfare bill rising, people trapped on benefits, and opportunities lost. The most heartbreaking part of all this is not the monetary cost, which we seem to talk about too much, but the cost to people of being written off, and spending a lifetime in a failed, broken system. We all hear stories every week, through our casework and in our surgeries, of people who want to work but do not have the necessary support; of the intrusive nature of assessments; of bureaucracy that needs a human touch; of people fearing to try work for fear of losing their benefits; and of disabled people who need more support.

One of my hon. Friends, who is no longer in the Chamber, spoke about the broken social contract. While we approach this debate, and this subject, with the compassion and care that are needed, we should also be clear that the social contract is already broken. There is nothing honourable about denying or slowing down action to tackle the problem of 2.8 million people being thrown on the scrapheap for being sick, or long-term sick. There is nothing to cherish from the Conservatives, who left this Government a legacy of nearly 1 million young people thrown on the scrapheap, not in employment, not in education and not in any meaningful walk of life. No one can say that the system is not broken, and that is the spirit in which many of us in this Chamber have sought, from different perspectives, to approach this legislation. I want to speak against amendments that seek to delay or wreck this Bill, because whatever happens next, we need to get going.

One of the criticisms of this Government that I sometimes hear is that we do not move fast enough. Now that we have started to fix our broken welfare system, we are being told by some that we are going too fast. I think we can move forward with a Bill that begins to fix the foundations of our welfare system, and do so with compassion for those most in need, and I welcome contributions that we have heard today. I also welcome the fact that Ministers have listened to our concerns about the Bill and decided last week to remove clause 5, because it caused anxiety not just to Members of this House, but to many people outside who saw the risk.

Bringing the Timms review forward before any changes are made, and committing to fully involving disabled people and their organisations, is the right thing to do; the Government have listened. I recognise many of the points made in passionate speeches, and I support new clause 11, tabled by my hon. Friend the Member for Penistone and Stocksbridge (Dr Tidball). I hope the Minister will address that, and assure the House that the sentiment has been taken on board, because the new clause will make the Bill better, not worse, and clear the fog.

It is important that we push ahead with this Bill. As colleagues have said, work is central to Labour’s mission, because dignity comes from good work and from employers who embrace their employees and give people the ability to work. There is no dignity in allowing 2.8 million people to be thrown on the scrapheap, with no ability to get off it.

Winter Fuel Payment

Lizzi Collinge Excerpts

Monday 9th June 2025 Commons Chamber

[Lizzi Collinge (Morecambe and Lunesdale) (Lab)]

I very much welcome raising the threshold for the winter fuel allowance. As I am sure the Minister knows, the threshold was at the heart of my concern about means testing, although the principle of means-testing is absolutely correct. Morecambe and Lunesdale has an older than average population. Can the Minister assure me that my pensioners will not have to do anything special—make any application—to get their winter fuel allowance?

[Torsten Bell]

I can absolutely give my hon. Friend that assurance. We want to make sure that the vast majority of pensioners can receive winter fuel payments. We want to make that as easy as possible, which means making receipt automatic.

Personal Independence Payment: Disabled People

Lizzi Collinge Excerpts

Wednesday 7th May 2025 Westminster Hall

[Lizzi Collinge (Morecambe and Lunesdale) (Lab)]

It is a pleasure to serve under your chairship, Dr Allin-Khan. Many of my constituents have contacted me with serious concerns about the proposed changes to PIP. Putting aside the human cost of that worry for one moment, we already know what happens when we take money away from early intervention and preventive support. It does not save money; it simply shifts the cost, and often ends up increasing it.

We have evidence for that. When the disability living allowance was replaced with PIP in 2013, people with multiple sclerosis were often taken off the benefit. The MS Society investigated the effects of those changes on 2,500 people with MS who lost the higher rate of DLA. Unsurprisingly, it found that those people relied more on NHS services, particularly GPs and A&Es. In one year alone, those GP and A&E costs were £7.7 million for just 2,500 people.

We are still dealing with the real human cost of 14 years of Conservative austerity and cuts to health and social care. We have to learn from the failure of those policies and do something differently. This party was elected on a promise of change. I stand by that promise, and I stand by my Government, but no one is denying that our welfare system needs serious reform. That should not come at the cost of disabled people.

Welfare Reform

Lizzi Collinge Excerpts

Tuesday 18th March 2025 Commons Chamber

[Liz Kendall]

I absolutely agree that we need to tackle these issues, but there is more and more evidence that good work is good for the mental health of people with anxiety and depression, and for those with serious conditions, if support is provided in the right way. I have seen it for myself in my constituency, including through the work that the NHS is doing. We have to spread that far more widely.

[Lizzi Collinge (Morecambe and Lunesdale) (Lab)]

We know that helping people to stay well and manage long-term conditions or disabilities is almost always cheaper in the long term. Can the Secretary of State tell me how she will account for the potential wider system costs of changing the amount of money that is available to people with disabilities or long-term conditions?

[Liz Kendall]

For many years before I was appointed as a shadow DWP Minister, I worked in health and social care, and I know that helping people to manage their long-term conditions is absolutely essential. We must give people power, control and agency over their lives, rather than telling them that a doctor or somebody else always knows best. I deeply believe in that principle, and I will work closely with my right hon. Friend the Health Secretary, because I know he believes that, too. There is much more we can do, but we will definitely make a start.