Universal Credit (Removal of Two Child Limit) Bill

Joy Morrissey Excerpts

Tuesday 3rd February 2026 Commons Chamber

[Helen Whately]

I am sure that all of us in this House care about poverty and children’s prospects, but the answer is not to spend more, to hand out more money and to trap people in worklessness; the answer is to support people to work, and that is exactly the opposite of what the hon. Lady’s Government are doing.

We all know that bringing up children is expensive and important, but when working couples are having to make tough decisions about whether they can afford to start a family at all, they should not be asked to pay higher taxes to fund someone else to have a third, fourth or fifth child. Someone who is in work does not get a pay rise because they have another child. If we are serious about avoiding a benefits trap, whereby it pays more to be on welfare than in work, we should be honest about what happens if we lift the two-child cap. Benefits for individual households will rise by thousands. Nearly half a million households will receive around £5,000 more on average. A single parent on universal credit with five children could get an extra £10,000 without doing any work, taking their household income to more than £45,000, untaxed—people have to earn about £60,000 to get that income from work! Around 75,000 households will get between £10,000 and £21,000 extra as a result of this Bill. For some households, the extra money will be more than a full-time income, after tax, for someone on the minimum wage.

[Joy Morrissey (Beaconsfield) (Con)]

Does my hon. Friend agree that it is an issue of fairness for the taxpayer if people are working hard in a job but being rewarded less than someone else getting benefits? That is why we need to keep the two-child benefit cap.

[Helen Whately]

It is exactly as my hon. Friend says. The extra money that some families will be receiving—without even working—would require such a high income to achieve through work. This simply exacerbates the poverty trap.

--- Later in debate ---

[Dr Evans]

That is far from the truth. I am simply arguing that we need to be fair to those who need the system to support them and those who contribute to it. I worry that we are pulling at the fabric here.

It is interesting that the debate in the House is slanted towards the Labour view, because they have the numbers. If we look at the public polling, however, we know that, consistently, 60% of the public support the cap and only 30% want it to be taken away. Why is that? Fundamentally, they understand that there has to be give and take. The worry here is that someone will suddenly get £3,650 with no contractual change within society to better themselves.

The money could be better spent. To take an example from the last Government, in 2021 they changed the UC slider from 63% to 55% to encourage work. That cost about £2.5 billion; we are talking about £3 billion today. We have heard from the Government how this will be paid for. It is not hypothecated. The pharmacist I was talking about and the sister of the hon. Member for Bishop Auckland (Sam Rushworth) will pay for this, as will the publican who goes out to work. They will see their taxes rise. That is the contract that I am worried about.

[Joy Morrissey]

It is an issue of fairness. The people of Beaconsfield, Marlow and the south Bucks villages have seen their taxes go up and they are seeing those taxes being given to people who are not working. It is unfair.

[Dr Evans]

That is exactly right. The public will stand for a generous safety net, but they will not stand for people not trying to take things forward. I worry that, despite this Government’s talk of employment rights, the chances for employment and the working poor, more people are out of work under this very Government due to the choices they are making. That is fundamental to today’s debate, and trying to leverage morality into it misses the reality of responsibility. Every family in this country make fiscal choices and expect to behave responsibly, and so should the Government who lead them. That is the crux of the matter.

In the time I have left, I will move on to the context. If this were a moral crusade, as we have heard the Prime Minister say, he would have done it in his very first Budget; he would have made that choice. However, as we have heard from other Members, when this policy was put forward after the new Government came in, 40-odd MPs did not vote and seven Labour Members had the Whip removed.

If we are talking about poverty, one thing that has not been raised in the debate so far is the winter fuel payments policy. The Government’s own analysis said that it would put 50,000 pensioners into absolute poverty and 100,000 into relative poverty. So there is a dichotomy here, and it is about choices. Government Members seem to say that if we are going to solve poverty, we need to focus on one area, yet they all voted to take the fuel payments away—[Interruption.] I hear chuntering from the other side about means-testing, but that did not happen until later when there was a climbdown.

The key thing is that these are difficult choices that have to be made. I worry that the public see straight through what is going on. They need fairness in the system. They do not need a vote to be held to try to placate the Back Benchers of a failing Prime Minister. If this truly was the mission of the Prime Minister at the start, he would have done it straightaway.