Universal Credit and Child Tax Credit: Two-child Limit Debate

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Department: Department for Work and Pensions

Universal Credit and Child Tax Credit: Two-child Limit

Angela Crawley Excerpts
Tuesday 27th November 2018

(5 years, 5 months ago)

Westminster Hall
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Alison Thewliss Portrait Alison Thewliss
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The hon. Gentleman is absolutely correct. The Womens Budget Group has found that 86% of welfare cuts have come out of women’s pockets. The Government are taking a gendered and targeted approach, and they should be wary of that.

Angela Crawley Portrait Angela Crawley (Lanark and Hamilton East) (SNP)
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The charity Refuge found that the two-child limit is forcing domestic abuse survivors and their children into poverty as a result of an increased financial dependence on their perpetrators. Does my hon. Friend agree that women are ultimately fearful to leave abusive relationships because they cannot support themselves, and that that is another example of where the policy has gone wrong?

Alison Thewliss Portrait Alison Thewliss
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My hon. Friend makes a good point, and I will talk about some of Refuge’s evidence later, because it is stark and the Government should take heed of it.

A social security safety net ought to be there for everybody—each one of us—when they need it, but by April 2018, the two-child limit had already affected 73,530 households. Well over half of those households—43,420 of them—were in work, so I will not have it if the Minister, or anybody else on the Tory Benches, which I note are remarkably empty, gives us the old Tory trope that the policy is about people on benefits making the same choices as those supporting themselves solely through work. The benefit is designed to give people in the lowest-paid work a top-up, to help support them and to make sure that their children are fed and clothed.

Of those 73,530 households, 2,900 were able to keep their entitlement for a third child by claiming an exemption to the policy. There are largely three exemptions to the two-child limit. None of them is entirely logical, and I would recommend that hon. Members check out the Child Poverty Action Group’s page on the exemptions to see how mind-bendingly arcane they are.

The first exemption is the rape clause. I put on record again my absolute disgust at a policy that forces women to fill out a form to say that they have conceived their third child as a result of rape. It is absolutely inexcusable as a policy. For someone to have to put their child’s name on a form and say that they were conceived as a result of rape is beyond contempt, and the Government should know better than to treat women in that way. We know from the figures that, up until April, 190 women across the UK claimed under that exemption. That is 190 women who have had to replay the most traumatic experience of their life to put food on the table. The Government should hang their head in shame.

The second exemption is for twins, but it is not as simple as it ought to be. It applies if twins are born after a single birth, but not before. If someone has twins after two previous children, only one twin is eligible for payment, but both those twins need to eat. There may be two almost identical families with three children—one that had twins and then a single birth, and one that had a single birth and then twins—but only one is worthy of support from the Government, which is completely illogical.

The third exemption is for adoption, but not if someone has adopted from abroad or if they were a step-parent before they adopted the third child, so that is not simple either. An additional exemption has been made for kinship care. I pay tribute to the hon. Member for Great Grimsby (Melanie Onn), who successfully campaigned for that on behalf of her constituent Alyssa Vessey, who lost an entitlement for her own child after taking on caring responsibilities for her three younger siblings. The clear result of the policy and the exemptions is discrimination. Families may have similar circumstances and needs, but some will lose out simply due to the order in which their children were born—something that those children certainly have no control over.

I understand that CPAG will be back in court on the issue before Christmas, and I wish it the very best with its case. It believes, and I agree, that the two-child limit breaches articles 8 and 12 of the Human Rights Act 1998. It is also beyond me how the limit could possibly be compliant with the UK Government’s obligations under the UN convention on the rights of the child.

There will also be an impact on blended families and families who may be encouraged to separate to avoid being hit by the limit. A friend also pointed out that women who have children from previous relationships will be caught should they wish to have a child with a new partner, which is very common, whereas the male partner may be able to go off and start a new family more easily without having the children with him.

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Danielle Rowley Portrait Danielle Rowley
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I only have two minutes left, so I must press on.

The SNP have argued against covering for Tory welfare reform, and I agree that it should not exist in the first place; but such political posturing helps no one. The powers of the Scottish Parliament should be used to stop families struggling.

Angela Crawley Portrait Angela Crawley
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On that point, will the hon. Lady give way?

Danielle Rowley Portrait Danielle Rowley
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I am sorry, but I must press on. I am quite confused about SNP policy, because the hon. Member for Glasgow Central said she cares about families and children across the UK and wants the policy to be stopped across the UK; but the hon. Member for Glasgow East (David Linden) said that the only way to end the situation was independence for Scotland. I should like to know whether they care about people across the UK, or only about people in Scotland.

Angela Crawley Portrait Angela Crawley
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Will the hon. Lady give way?

Danielle Rowley Portrait Danielle Rowley
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I will not. I want to ask the Minister how he thinks the retroactive application of the policy will affect families who already have more than two children. How will it achieve the policy’s stated aim of making the system fairer and changing people’s financial choices about having children? In addition, there is no evidence that that would happen. What steps are being taken to ensure that women, ethnic minorities and other protected groups are not affected disproportionately by the cap? Have the Government made any assessment of the mental health and wellbeing impact of the policy?

The policy pushes more children into poverty. It targets women with no real assessment, and it is a good example of the Government engineering society to punish the less privileged for having children.

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Paul Sweeney Portrait Mr Sweeney
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Let me make one point clear: the evidence is that we voted against the Third Reading of that Bill, when it mattered. The rhetoric at the time is irrelevant. Also, the Labour party is of course now under very new management, with a radical approach to abolishing the policy. The point is irrelevant.

A Government who react to children’s pain in the way that is the subject of the debate—by callously making a comparison with a market decision such as buying a car or a house—are not fit to govern. That is what we face when the Conservative Government take that attitude towards children’s pain. The children do not make those decisions. We have a duty to establish a welfare state that goes back to its founding principles of drawing a line below which no one will fall, and above which everyone can rise. That is the fundamental principle of the universal system of welfare in this country. While I want a UK Labour Government who fulfil their pledge to end the rape clause across the whole UK, we should use powers wherever they can be found to mitigate the policy and reduce harms in society where possible.

Angela Crawley Portrait Angela Crawley
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Will the hon. Gentleman give way?

Paul Sweeney Portrait Mr Sweeney
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I am sorry, but I have already given way and have only five minutes for my speech.

We have the opportunity to make an impact in the Scottish Parliament, where there are powers to mitigate what is being done. It is four years since the Smith Commission, and the SNP has delivered only a single payment to carers. Families suffering the evil Tory cap on welfare need help right now. Indeed, that is not beyond the realm of possibility: to eliminate it in Scotland would cost £4,000 per child, which is less than 10% of the budget underspend of the Scottish Government. It is very much in their gift and they can achieve it, with the £10 billion extra they achieve from the Barnett formula. We must take action on all fronts to oppose the callousness of the Conservative party. Let us not pretend we cannot take robust action at all levels of Government to deal with the matter and minimise the harms faced by children.

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Mike Amesbury Portrait Mike Amesbury
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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.