Working Tax Credit and Universal Credit: Two-Child Limit

Debate between Steve McCabe and Alison Thewliss

Thursday 21st April 2022 Westminster Hall

[Steve McCabe (in the Chair)]

Despite what might be happening elsewhere, we have a very important debate here. I call Alison Thewliss to move the motion.

[Alison Thewliss (Glasgow Central) (SNP)]

I beg to move,

That this House has considered the two child limit of working tax credits and universal credit.

It is a pleasure to see you in the Chair, Mr McCabe. You are quite right to point out that, while other debates might be happening, this debate is actually quite important. It has been six years, nine months and 13 days since the Budget in 2015, when the two-child limit appeared in the Red Book, and just over five years since it came into force. Some might be wondering why I am bothering to come here today to complain about this policy; it is because, for me, it is a fundamental injustice and deserves to be looked at seriously.

The Child Poverty Action Group and the Church of England estimate that 1.4 million children in 400,000 families are now affected by the two-child-limit policy. Unless it is abolished, the number of children affected will reach 3 million, as more children are born under the rules.

The two-child limit for child tax credits and universal credits broke the long-standing link between need and entitlement, on the basis that families in receipt of state support ought to face the same choices as those supporting themselves solely through work. This is a false narrative; it is the myth of the benefit queen. This policy has never been about fairness.

The majority of families affected by the policy are in work—low-paid jobs, working to support their families. In mentioning that fact, I do not seek to stigmatise those not able to work—many have caring responsibilities, disabilities or other reasons that prevent them from working. They ought to have the protection of the social security system, too.

In many cases, it is all but impossible for those who are working to take on more hours to make up the drop in income created by the two-child limit. The Work and Pensions Committee pointed out that the cost of childcare can also mean that families will not be able to make up the loss by working more hours. The two-child limit is a poverty trap.

Many people are just not aware of the policy, which is a significant issue. They do not know that it will apply to them. The Government intended to influence people’s choices to have children, but they have certainly not been influenced in any meaningful way by a piece of Department for Work and Pensions legislation.



The latest research by Mary Reader, Jonathan Portes and Ruth Patrick on whether cutting child benefits reduces fertility in larger families establishes that the two-child limit is not leading to any major reductions in fertility among those likely to claim benefits. All the policy does is punish people for their circumstances and drive up child poverty rates.

Immigration and Nationality Application Fees

Debate between Steve McCabe and Alison Thewliss

Thursday 25th March 2021 Westminster Hall

[Alison Thewliss (Glasgow Central) (SNP) [V]]

I am glad to be able to raise some of my constituents’ concerns in this debate. The Home Office’s route to citizenship really does treat people as cash cows. It is blatant profiteering off the backs of people who have come to this country to help and to contribute, and it has a negative impact on families’ health and wellbeing, pushing them into debt. The 10-year path to application for ILR, as people have pointed out, means fees every 30 months, the immigration health surcharge, and the ILR application itself after all that. As the House of Commons Library points out, that totals £10,372 in fees and an additional £2,389 for ILR.

Of course, that amount assumes that everything is simple and straightforward, which we know often is not. For example, it does not include lawyers’ fees which, although perhaps necessary, can be absolutely eye-watering for families. I know from people in my constituency that the costs mount up, particularly for families with more than one child. As the hon. Member for Hackney South and Shoreditch (Meg Hillier) rightly pointed out, this means that families prioritise those who are working and leave children to a later stage. Other families who cannot make those choices end up in a huge amount of debt, sometimes even putting these fees on credit cards, leading to significant financial problems for many.

They cannot live the life that the rest of us can enjoy. Many children cannot then participate in school trips, for example, because they do not have the right to travel due to not having citizenship or the relevant passport to do so. They lose out because their families are putting so much into the immigration system that they cannot afford the basics that many other families enjoy. The fee waiver, as others have pointed out and which the Minister may fall back on, is incredibly difficult to get. I have tried to support constituents to get a fee waiver, but it often proves almost impossible unless the family were absolutely destitute. That should not be something that a family has to prove just for the privilege of living in and being a citizen of this country.

As other Members have pointed out, the system itself is incredibly poor. Many cases are lengthy and the processes are inefficient. Many of my constituents have waited years and years to be processed due to issues that the Home Office deems “complex” while often being unwilling or unable to discuss with me as the MP. I could speak at length as well about the visitor visa process, which is absolutely appalling. It just takes money from people, only to refuse their application and then grant it later down the line despite nothing much having changed.

To move to the highly-skilled migrants, I was aghast and shocked to find the Chancellor bigging up the chances of bringing in highly-skilled migrants to this country in his Budget, because I have dealt with many of the highly-skilled migrants affected by the 322(5) case and who found themselves suddenly losing out. Many of them, who were at the end of the 10-year route to ILR and had paid their fees and taxes over the years, lost out because they had made legitimate changes that anyone could make to their tax returns. That meant that their route to citizenship was torn away from them completely unjustifiably by the Home Office, and many people are still in this situation waiting for justice.

Many of these people have been here contributing for a decade or more, but the Home Office then treats them like criminals in the country they have made their home. To use the phrase from 322(5) in the immigration rules, they were deemed

“a threat to national security”

and all for making a legitimate change to their tax return. It is absolutely shocking and unacceptable, and before a single further person is given a highly-skilled migrant visa, I ask the Chancellor and the Home Office to sort out this injustice once and for all. It cannot be that those who are already here and have already contributed are treated so abysmally while the Chancellor tries with the other hand to bring people into this country.

I could speak at length about the many cases I have seen over the past six years showing how incompetent, expensive, inefficient and cruel the Home Office is, but I ask the Minister to reflect on these issues that I have raised and make it fairer for families who just want to live their lives, get on with things and have their children grow up in this country. We should owe them a great debt of thanks, not put a great debt on their shoulders.

[Steve McCabe (in the Chair)]

Last but not least, Mr Alistair Carmichael.

Working at Height: Safety

Debate between Steve McCabe and Alison Thewliss

Thursday 2nd May 2019 Westminster Hall

[Alison Thewliss]

I thank the Minister for adding that—I was about to come on to blacklisting and the risk that some workers feel on reporting when things are not right. Employees in precarious employment in particular feel that if they become a whistleblower, they could quickly and easily lose their job, with the issue going unresolved for the next worker to come up against as well. I urge him to consider whether the anonymous reporting scheme that he mentioned covers that eventuality. There may be a time lag between someone’s reporting and an investigation; investigating needs to be done more efficiently and quickly, so that there can be a resolution without that worker being put at individual risk of losing their employment.

I was glad to hear what the Minister said about workers’ rights. We will hold the Government to that—he had better believe that we will. Working at height is increasingly complex, because buildings and the employment spectrum are more complex. It is right that the regulations are looked at again to ensure that they are entirely fit for purpose, because things have changed dramatically since they were written and we need to ensure that they are always effective in protecting workers.

Question put and agreed to.

Resolved,

That this House has considered preventing serious injury and fatalities while working at height.

[Steve McCabe (in the Chair)]

The next debate is scheduled to start at 3 pm, so I am required to suspend the sitting until then.