Universal Credit (Removal of Two Child Limit) Bill

Darren Paffey Excerpts

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

[Darren Paffey (Southampton Itchen) (Lab)]

I am proud to support the Bill and do so with the families of Southampton firmly in mind. Those are families who fell foul of the last Conservative Government’s mission to make Britain Dickensian again.

Child deprivation in my city is among the worst in the country—worse than more than 83% of local authorities. Here, that is a potentially abstract statistic; there, it is reflected in the lived reality of my constituents. More than one in five working-age adults in Southampton are on universal credit. That rises to an average of one in three in our most deprived neighbourhoods. As colleagues have said, many of those people are working hard but are still falling short. What was the last Conservative Government’s answer to that? It was to count the children and punish the whole family. No doubt tonight Conservative Members will traipse through the Lobby and vote to keep a lid on the 450,000 children who are about to be released from poverty.

The two-child limit simply did not work. If anything, it compounded the pressures on families—families who repeatedly tell me that the universal credit they receive barely covers the rent, let alone food, heating or school essentials. That is the Tory legacy, and that is the deeply entrenched poverty that this Labour Government are having to undo bit by bit. It is therefore no surprise that an estimated 10,000 children in Southampton still live in households with absolute low income and that 25% of children live in households with relative low income. These realities demand clear action, and this Bill is part of that action being led by the Labour Government.

[Matt Rodda (Reading Central) (Lab)]

My hon. Friend is making an excellent point. The issues he describes in his Southampton constituency apply in a similar way to my residents in Reading. Does he agree that an important aspect of the Government’s work is not only what we are debating today, but the wider and broader package of measures, such as help on housing and the cost of transport and the warm homes initiative? Perhaps he will talk about the overall impact of these measures.

[Darren Paffey]

I thank my hon. Friend for making that salient point, and I will come to that wider package of measures.

Of course, we have heard straw-man arguments, saying, “Well, this one thing will not solve child poverty.” No one is claiming that it will solve child poverty; it is one piece in the jigsaw of the wider work that this Government are doing. But I am glad that this punitive, arbitrary cap, which only made life worse for so many, is being scrapped. That will lift up to 2,500 children in Southampton Itchen out of poverty.

If I were to credit the Conservative Opposition with one thing in this debate, it would be their consistency.

[Josh Fenton-Glynn (Calder Valley) (Lab)]

Consistently wrong.

[Darren Paffey]

Consistently wrong, and they have made a consistent and desperate attempt to be divisive. They are trying to split the country into those who pay tax and those who receive welfare. These generalisations around the “deserving” and the “undeserving” poor are not only crass but factually wrong. Many contribute through work for years. They fall on hard times and rely on the safety net that they have paid into—my hon. Friend the Member for South Derbyshire (Samantha Niblett) made that point eloquently. The Conservatives ignore the fact that many receive universal credit while they are working. That is the state topping up poverty wages. The Conservatives might be happy to ignore that, but Labour is taking action on the minimum wage—what a contrast.

This Bill removing the two-child limit is a vital step, but—to the point made by my hon. Friend the Member for Reading Central (Matt Rodda)—it is not a stand-alone measure. It sits alongside this Labour Government’s wider work, such as opening free breakfast clubs, which will transform life chances, with early adopters in St John’s, St Patrick’s and Hightown primary schools in my constituency. It also sits alongside the £20 million Pride in Place investment in the Weston estate and the expansion of free school meals. A third of pupils in my state-funded schools are eligible for free school meals, and more are set to get that support, making a material difference to their lives and breaking down some of the barriers to learning that still exist.

Labour is investing in more childcare to help those parents who face barriers to getting into work. We are strengthening some of the universal credit work allowances, and delivering a comprehensive child poverty strategy aimed at giving every single child a fair start. I commend the Secretaries of State for Education and for Work and Pensions for the work they have done on leading that vital change.

We all dream of a future where these kinds of benefits might not be as necessary as they are now. We dream of, and Labour is working towards, a world where work pays well and pays better, which our Employment Rights Act 2025 moves us closer to achieving. We dream of a world where the cost of living crisis is less acute, as our action on warm homes and freezing rail fares, VAT rates, income tax rates and fuel duty will help to achieve. Add to that the creation of opportunities through the youth guarantee scheme and more apprenticeships, and we can see that a lot is happening, but that there is still much more to do.

The Bill recognises a very simple truth: children do not choose the circumstances into which they are born. Supporting the Bill and scrapping the arbitrary failed cap is not only the right economic decision; it is the right moral decision.