Universal Credit and Child Tax Credit: Two-child Limit

Mike Amesbury Excerpts

Tuesday 27th November 2018 Westminster Hall

[Mike Amesbury (Weaver Vale) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Streeter, and I thank the hon. Member for Glasgow Central (Alison Thewliss) for securing such an important debate. She shares my view, and that of many colleagues, that the two-child limit is unfair and adversely affects tens of thousands of families. That policy stands out, tragically, as a clear example—perhaps the clearest example—of a Tory welfare system that is failing and unsupportive of those most in need. That view is shared not just by those of us in this debate; it is shared by charities and many advocacy groups, and much of civil society.

Earlier this year, 60 Christian, Muslim and Jewish religious leaders strongly condemned the policy, arguing that it sent a message that some children matter less than others. Disappointingly, however, some do not share that view. The former Work and Pensions Secretary, the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith), described it as a “brilliant idea”, and believed that it would force claimants to make the same life choices as families who are not on benefits, and incentivise them to seek work or increase their hours. We have heard from this debate that it is certainly not a brilliant idea. The claims about life choices and incentives show nothing but disdain for the people and families who our welfare state should be supporting and show no understanding of the precarious reality of the world of work for many at the sharp end.

While the two-child limit was possibly the most pernicious element of the approach, we should not forget that it was part of a package of welfare reforms to tax credits and universal credit announced in the 2015 Budget. The Child Poverty Action Group has estimated, as my hon. Friend the Member for Bury South (Mr Lewis) pointed out, that the two-child limit alone will lead to 200,000 more children growing up in poverty by 2020. It is also a policy that causes one sibling to lose out at the expense of another, with one child being of more value than another. Surely that is not fair or right.

[Alison McGovern (Wirral South) (Lab)]

Does my hon. Friend agree that there is a simple unfairness at the heart of the policy? We should no more support it than support one child in a family getting access to education and another not, or one getting access to health services and another not.

[Mike Amesbury]

I agree entirely with my hon. Friend and neighbour. Children are children.

From April 2017, low-income families lost entitlement to additional support through child tax credits or the child element of universal credit for a third or subsequent child born after that date. If the family was already claiming support for three or more children before that date, in principle they continue to receive support. However, to demonstrate the absurdity of the policy, if a third or subsequent child born after April 2017 is disabled, the family will receive child tax credits or the child element of universal credit for that child, but one of the other two children will lose out. As was rightly pointed out by hon. Friends across the Chamber, that is an attack on some of the most vulnerable in society: children. The policy also discredits the claim of this Conservative Government that they are the party of the family and of religious freedom. It is yet another example of why the roll-out of universal credit needs to be stopped.

The Government must end the delays in payment, and it must also end one of the most shocking consequences of the legislation: the rape clause. Another former Secretary of State for Work and Pensions, the right hon. Member for Tatton (Ms McVey), made the extraordinary claim that the policy potentially offered rape victims double support: social security and “an opportunity to talk” about the assault. That was insensitive to say the least. As hon. Friends have pointed out, it was absolutely appalling.

[Hannah Bardell]

The hon. Gentleman is making a very powerful point. Does he agree that it is a very special kind of grim hypocrisy for a Government who have scrapped the child poverty targets and are heading towards a Brexit disaster that will see tens if not hundreds of thousands of jobs lost to then target the most vulnerable in society? They will no doubt be losing jobs as a result of Brexit, but the Government have brought in a policy that marginalises and breaches the human rights of so many vulnerable members of our society.

--- Later in debate ---

[Mike Amesbury]

I agree entirely with the hon. Lady. What the former Secretary of State said demonstrates how out of touch Ministers are. Perhaps more of them should have attended the debate today, because they would have heard many contributions that have laid bare the misery the policy is causing. We heard contributions from 10 Members: my hon. Friends the Members for Glasgow North East (Mr Sweeney), for Ealing Central and Acton (Dr Huq), for Stretford and Urmston (Kate Green) and for Bethnal Green and Bow (Rushanara Ali), the hon. Member for Glasgow East (David Linden), my hon. Friends the Members for High Peak (Ruth George) and for Bury South, the hon. Member for Strangford (Jim Shannon), my hon. Friend the Member for Midlothian (Danielle Rowley), and the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone). They are all very powerful voices for vulnerable children in this place.

This weekend, the leader of Scottish Labour called on the Scottish Government to mitigate the impact of the two-child limit. I urge the Scottish Government to use their powers to do so in advance of the budget on 12 December. They are already planning to use the new social security powers to introduce an income supplement. I urge them to help the 4,000.

[Alan Brown]

Does the hon. Gentleman accept the early points made about the limits to what the Scottish Government can do? He should bear in mind that they are not only trying to mitigate Tory cuts; these things are happening against a £2 billion cut to the Scottish budget in real terms. They are trying to mitigate Tory cuts with both hands tied behind their back.

[Mike Amesbury]

As my hon. Friend the Member for Glasgow North East said, there is a £10 billion supplement from the Barnett formula. We have heard the stories, and I have questions for the Minister.

[Angela Crawley]

rose—

[Mr Sweeney]

rose—

[Mike Amesbury]

I am sorry, I cannot give way any more; I must move on.

Some 59% of the 73,500 families who lost financial support are in work. What does it say about the Government’s claim that they are encouraging people into work if their policy chastises those very people? According to the Government’s own figures, each family claiming benefit lost up to £2,800 in 2017-18 as a result of the two-child limit. How is such a callous approach helping to support families and helping to tackle poverty? Some 2,820 households were exempted during the first year, the majority because they had breached the two-child limit after having twins or triplets. It would seem that Government policy is divorced from reality. In fact, it is divorced from biology. It is yet another example of a policy conceived out of ideological spite and prejudice, rather than an understanding of real life, of what motivates people’s choices and outcomes and even of basic biology.

From February 2019, all households with three or more children who make a new claim will be required to claim universal credit and will also be subject to the two-child limit, irrespective of when their children were born. That cannot be right. It is not fair that the policy is applied retrospectively. Finally, yesterday, the Bishop of Durham and a cross-party group called for a ministerial direction to delay the February 2019 deadline. Will the Secretary of State and the Minister apply such a direction?

We have seen the effect that the policy is having on many households across the UK. We have seen how it is just one example of how Government social security chaos punishes rather than provides and focuses on savings, not support. The Government need to accept that their approach to social security has failed. They need to stop it, they need to fix it, and they need to fund it. Our communities, our families and, as we have heard today, our children deserve nothing less.