Universal Credit (Removal of Two Child Limit) Bill

Baroness Jenkin of Kennington Excerpts

Thursday 12th March 2026 Lords Chamber

[Baroness Jenkin of Kennington (Con)]

My Lords, I am grateful for the opportunity to speak in the gap, which also gives me the opportunity to congratulate the maiden speakers and say that I look forward to their participation in our work here.

I would like to associate myself with my noble friend Lady Stedman-Scott’s remarks. As the Minister will be aware—but possibly not all noble Lords—my noble friend’s life before she came here, working for three decades for the charity Tomorrow’s People, was dedicated to helping people furthest from the labour market to get and keep a job in order to live an independent life. She knows better than many, and from long experience, that this approach is the best route out of poverty.

At the heart of this debate lies the principle of fairness. Across the country, millions of working families make difficult financial decisions every day about the size of their family and what they can afford to provide for their children. It is reasonable that the welfare system reflects the same considerations. A two-child limit ensures that the system remains sustainable and focused on supporting those who need it most, while also maintaining fairness between households who rely on benefits and those who support themselves entirely through work.

We must also consider the broader responsibility of government to manage public finances carefully. Welfare spending is the largest category of UK public spending, and policies such as the two-child cap help ensure that support remains available for the most vulnerable, both now and in the future. In difficult economic times, choices about public spending are never easy, but responsible government requires that we strike a balance. The Government’s first duty is the security of this country and the British people. We know that defence spending has to increase to fulfil that duty.

The OBR calculates that lifting the cap will cost the taxpayer £2.3 billion this year, rising to about £3 billion by 2029-30, which is unsustainable in the current economic climate. With an estimated 29 million households affected, the cost per household per year is projected to be £80 to £100, which would be an additional challenge at a time when so many are struggling with costs. Our duty is not only to provide support but to ensure that the system remains fair, sustainable and credible for the taxpayers who fund it.