Universal Credit (Removal of Two Child Limit) Bill

Stuart Anderson Excerpts

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

[Helen Whately]

My right hon. Friend has indeed made a significant point about the strange position in which so many Labour Members find themselves. Having previously voted against lifting the cap, here they are now, delighted about lifting it.

Labour Members say that the Bill will end child poverty. They have read that increasing handouts will decrease the metric called relative poverty. However, relative poverty is a deeply misleading measure. It is not an accurate measure of living standards. It tells us nothing about whether people have enough to live on, or whether children will have better life chances. It can get worse when the country gets richer, even when living standards for the very poorest are rising, and it can look better when people are getting poorer. That is not progress; it is levelling down. Throwing money at one flawed metric is not a strategy. In fact, it risks doing the opposite of what Ministers claim to want, trapping families in long-term dependency rather than lifting them out of it.

There is a proven way in which to improve children’s life chances, and that is work. Work allows parents to provide for their families, to pay the rent or mortgage, to put food on the table and clothes on their children’s backs, to set an example to their children, and to create structure and routine in their households. The Centre for Social Justice has found that children in workless households are four times more likely to be materially deprived, but under this Government the number of children growing up in workless households has risen at the fastest rate on record, and has now reached 1.5 million. Contrast that with our record, Madam Deputy Speaker. From 2014 onwards, the number of children in workless households fell year on year. We lifted a million people out of absolute poverty, including 100,000 children, and we drove unemployment down to historic lows.

Under this Labour Government, unemployment is rising month after month, so, sadly, the number of children in workless households will continue to increase. Inflation is up as well, to almost double the level that the Government inherited. Higher inflation means that the money in your pocket is worth less: in other words, you are poorer. Fewer jobs, more unemployment, a higher cost of living—that is what the Government are doing to people. I say this to them: you do not lift children out of poverty by making the whole country poorer.

[Stuart Anderson (South Shropshire) (Con)]

I am enjoying listening to Members who say they have met constituents who have suffered hard times. I grew up in hard times, on welfare, through the death of a parent, watching my mum go without food to feed us. There is no possible way, given that the cuts to benefits have been pulled, that the country can afford this. We will have no defence of the realm. South Shropshire residents will start going without. There is no feasible way to fund this measure, whichever way Labour Members look at it. Does my hon. Friend agree with me?

[Helen Whately]

My hon. Friend has made the important point that no other party in the Chamber seems to realise what a serious financial position the country is in. We have to ask ourselves hard questions about what the country can afford.

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[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.

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[John Slinger (Rugby) (Lab)]

The child poverty crisis that we inherited from the previous Government is, indeed, stark. In 2014, 16.5% of children were in relative poverty and by 2024, that had risen to 21.8%. The simple truth is that Conservative Members oppose a measure that lifts children out of poverty. They have not changed.

Successive Conservative Governments—and yes, the Liberal Democrats, who cannot get off scot-free, given the coalition—carried out policies that led to hundreds of thousands more children being pushed into poverty. To be precise, the figure is 900,000 more , leaving 4.5 million children living in poverty across our country. That is a shameful number, as large as the population of countries such as Croatia or Ireland. By the end of the Conservatives’ time in office, almost a third of children in the UK were living in poverty. That tells us exactly who they prioritised and who they did not. Even now, they would undo progress.

[Stuart Anderson]

Will the hon. Member say what statistic backs up the statement that a third of the children in the UK were living in poverty?