Universal Credit (Removal of Two Child Limit) Bill

Lord Davies of Brixton Excerpts

2nd reading & Committee negatived & 3rd reading
Thursday 12th March 2026 Lords Chamber

[Lord Davies of Brixton (Lab)]

I welcome strongly the Government’s decision to abolish the two-child limit. Scrapping it remains the single most effective step that we are taking to reduce child poverty in this country.

As we have heard, abolishing the policy will lift about 450,000 children out of poverty by 2030. When combined with the other measures in the Government’s child poverty strategy, this could lift more than half a million children out of poverty by the end of the decade. This is something that we should be celebrating and shouting from the rooftops. It is an incredible achievement and one of which the Government can be proud.

This is not an abstract statistic. It represents hundreds of thousands of individual children who will grow up with better security, better health and improved opportunities. One noble Lord has asked how the Government can justify the expense and mentioned the £3 billion figure. Quoting the £3 billion figure ignores the costs of child poverty—the poorer health outcomes, the lower educational attainment, the greater pressure on public services and the lost economic potential. Put together, that is an estimated £39 billion. The £3 billion saves the country as a whole £39 billion. How can we not wish to pursue that policy? It is not reckless spending. It is highly targeted and cost-effective, with serious and substantial long-term benefits.

Others have argued that taxpayers should not be expected to support larger families. Many of the comments of the noble Baroness, Lady Stedman-Scott, were about large families. The reality is that, now, only a limited proportion of families have four or more children. Of those families, the great majority are working hard to provide for them. Those who are unable to get jobs are still not to be dismissed as the feckless poor—that is the narrative which is always produced to try to prevent decent human services. The two-child limit has no measurable impact on family planning or the fertility rate.

Every child is to be celebrated and cherished, regardless of their birth order. They deserve enough food, a safe home and a fair start in life. When children are supported to thrive, they do better in school, remain healthier and contribute more fully as adults. That benefits not only those families but all of us—society as a whole. It is important—I think the point needs to be made to the noble Baroness, Lady Stedman-Scott—to note that this is not only about families out of work. As other speakers have explained, the majority of those who are caught by the current policy and will benefit in future are families who are in work.

Unfortunately, I am going to join my noble friend Lady Lister of Burtersett and raise the issue of the benefit cap. I do not think this policy will achieve all its objectives unless and until we remove the benefit cap. It was introduced by the coalition Government and it continues to place immense pressure on many families. I should have started by paying testimony to and welcoming the excellent maiden speeches that we have heard today, but it is worth mentioning that the noble Baroness, Lady Teather, can claim credit for opposing the introduction of the benefit cap when she was in government. I am sorry she is not here, but I acknowledge her important contribution to this debate.

To conclude, if we are serious about tackling structural poverty, we cannot remove one barrier, that of the two-child cap, while leaving another firmly in place. Lifting the benefit cap would complement the abolition of the two-child limit and ensure that the gains we make today are not undermined by other restrictions that fail to reflect the rise in the cost of living.