Universal Credit (Removal of Two Child Limit) Bill

Ann Davies Excerpts

Monday 23rd February 2026 Commons Chamber

[Ann Davies (Caerfyrddin) (PC)]

I stand to speak in support of new clause 1, tabled by the hon. Member for Brighton Pavilion (Siân Berry). The two-child cap should never have been introduced in the first place. As one of four siblings, I gently ask the hon. Member for South West Devon (Rebecca Smith): was I, the third born, worth less than my two older sisters or my younger sister? I am the mother of three daughters; was any one of my children worth less than any of the others? Absolutely not. At its most basic, that is what this policy is about.

I was in receipt of free school meals, and I remember well queuing up outside the school secretary’s door to collect my dinner token. I would have been one of these statistics—one of the 31% of children in Wales growing up in financial poverty. It was not emotional poverty—I was not poor in love—but financial poverty. There is a huge difference there, and that is why this Bill is necessary. Ending the two-child cap will cause an 11% fall in child poverty and a nearly 20% drop in deep poverty, according to modelling by the Bevan Foundation and Policy in Practice, but the Bill’s success in tackling poverty is limited by other Government policies, especially the benefit cap.

The benefit cap limits total income from certain social security payments to £22,000 a year—not the £71,000 that has been mentioned—for couples and single parents outside London. It has been frozen at that rate for 2026-27 by the Labour Government. Over 3,000 households were already affected by the benefit cap in Wales as of May last year, and 83% of those were households with children—the majority with three or more children. Those families will not benefit at all from the Bill. In fact, the Bevan Foundation estimates that more than one in five households affected by the two-child limit will not fully benefit from its removal because of the benefit cap.

The hon. Member for Brighton Pavilion’s new clause 1 would place a duty on the Secretary of State to publish an impact assessment of the effects of the Bill. It would include an estimate of those households that would not see the full benefits of removing the two-child limit because of the benefit cap. I support this new clause as a way to allow us to understand the real impact of leaving the benefit cap where it is on families across our nations and our communities, but it does not go far enough, as many have said. As Plaid Cymru spokesperson, I tried to ensure that the UK Government tackled the benefit cap as well as the two-child limit, but the narrow scope of the Bill meant that I could not table amendments to do that. Only the Labour Government can make this Bill include changes to the benefit cap and help further reduce the unacceptable poverty in our communities.

The UK Labour Government have said that they are committed to tackling child poverty. With 31% of children in my constituency in poverty, now is the time for the Government to show that commitment in action. I therefore urge the Secretary of State to use the powers available to him to legislate to scrap the benefit cap alongside the two-child limit, to make a real difference to children and families across all our communities.

[Amanda Martin (Portsmouth North) (Lab)]

I want to speak in favour of the Bill, and against amendment 1, as it is an attempt to gut the Bill and defeat its purpose entirely. There are moments in politics when the questions before us are not complicated, but simple, and when they are about dignity, compassion and the kind of country that we choose to be.

I will start with an important aspect of the Bill. Forcing women to disclose and prove rape in order to feed their child was one of the most cruel and indefensible features ever embedded in our welfare system. Scrapping that clause restores something fundamental: humanity. There have been, and there are, constituents in Portsmouth carrying trauma quietly, while still working, parenting and trying to hold their family together. They have needed and still need support, not interrogation. No mother should ever have to relive the worst moments of their life just to put food on the table. This requirement should never have been introduced in the first place, and it needs to go.

Alongside this injustice sits another harmful narrative: the suggestion that families affected by the two-child limit are somehow avoiding responsibility, and that just knocking out kids is a case of being lazy and going after money. The facts simply do not support this claim. Around 59% of affected households are already in work. They are nurses, teaching assistants, shopworkers, cleaners, carers—I could go on. In Portsmouth North, I meet parents finishing night shifts or juggling childcare, and parents who through tragedy, such as accidents, redundancy, relationship breakdown, illness or the death of a partner, find themselves in situations they did not start out in when planning their families. Many of them work additional jobs and still skip meals so their children do not have to eat less, only to be told that support stops because of an arbitrary rule. This is not fairness; it is hardship being locked in.

As the Child Poverty Action Group and many others make clear, child poverty damages health, education and long-term opportunities. These are not statistics; they are Portsmouth children with dreams, talents and futures that are—in my and this Government’s opinion—worth investing in. Removing the rape clause and ending the two-child limit says something powerful: dignity matters, work should be respected, and no child should be punished for the circumstances or the place in their family that they are born into.

As the Opposition mentioned the economic impact of the policy, I want to look at the economic picture. Inflation is falling, and the Bank of England expects inflation to get to the target quicker than expected. There have been six interest rate cuts since the election, which is the fastest rate of cuts in 17 years, taking an average of £1,400 off new mortgages. All that has happened without austerity and without making the most vulnerable in our society pay. In Portsmouth, the average mortgage has seen a reduction of £1,750, and £62 million has been provided for local services, such as roads, libraries and reviving high streets. That also includes 15,711 young people benefiting from youth investment. The national debt was cut last week, and we have the largest Budget surplus since records began—without austerity. Thanks to the choices we have made and Bills like this, the economic plan is the correct one, without putting our country’s and my city’s children into poverty. As my hon. Friend the Member for Salford (Rebecca Long Bailey) noted, meeting the cost of tackling poverty at source, rather than paying 10 times more to support children in poverty throughout their lives, is not just morally but economically correct.

This is not just good social policy; it is the mark of a decent society and something I am proud to stand up for. I ask the Minister in his summing up to tell me more about the work the Government will do to monitor the impact of the changes and how they will work across Government in a joined-up, consistent way to improve outcomes for young people and families, such as on workers’ rights, renters’ rights, breakfast clubs, free nursery hours, the skills agenda for apprenticeships and trainee partnerships, and the youth guarantee to name a few.