Universal Credit (Removal of Two Child Limit) Bill

Kit Malthouse Excerpts

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

[Kit Malthouse (North West Hampshire) (Con)]

As my hon. Friend the Member for Solihull West and Shirley (Dr Shastri-Hurst) said, no one in this House doubts the importance of supporting children. Labour Back Benchers are feeling good about the fact that they have organised themselves to deliver what they see as a simple moral good, but as they know and we know, things are much more complicated than that. I know they think they have delivered a simple moral good because not a single one of them has mentioned the rate. None of them has questioned why the additional rate is set at £17.25, rising to £17.90. They have not asked whether that is enough to address poverty. They have not sought to get under the skin of whether this is a more complicated and nuanced argument than it might at first appear. Just the simple act is enough, without contemplating the unintended consequences.

I am concerned that the Government are stumbling into a “Careful what you wish for” measure. First, a number of Opposition Members—and, indeed, the Secretary of State—mentioned the demographic time bomb that we face. There has been no discussion of this measure in the context of the overall fiscal problem that our children will face. At the moment, we have about 3.6 workers per pensioner in this country. By 2050, that will have fallen to two. How will we pay for all of this in the future? How will we fund it all without enormous debt? We have only to look across the channel at France to see what a fiscal eruption can look like, with civic disruption and unrest on the streets, when the necessary correction is made to a welfare state that is running out of control. I am afraid that that is exactly the situation we find ourselves in.

No one is pretending that decisions about welfare are easy—they are not easy. Having worked briefly as a Minister in the Department for Work and Pensions, I know that these are difficult decisions, yet no one is questioning the micro-decisions that are made. It is simply enough to say to people, “We’re pumping money out there. Let’s hope for the best.” Why is the standard rate for the mobility section of the personal independence payment set at £30.30? I do not know. Does anybody else know? Is there an argument for it? These are the decisions that Ministers have to make on a daily basis, not just about whether we pay welfare but how much we pay. One of my concerns about this measure is that none of that is part of a wider conversation about the massive demographic steam train that is coming down the tunnel towards us.

The second issue I have is that this legislation treats children as a burden to be somehow mitigated, necessarily because it includes them in the welfare bill, rather than as a bonus to be encouraged. As my hon. Friend the Member for Hinckley and Bosworth (Dr Evans) said, we on the Conservative Benches would much rather there were work incentives that came alongside children. When I was briefly the Secretary of State for Education, I was inundated with correspondence and approaches from lots of highly productive and ambitious women who wanted assistance in work. They wanted some kind of bonus, relief or package to encourage them to have children, rather than a safety net that rescued women if they had children. For a country that needs more children, we need a tilt in our mentality and approach to move from mitigation towards encouragement; that is my concern about embedding the notion that people should have more children in the welfare system.

The final issue I will raise is the legitimacy of the system, which has been raised by a number of Members. We often pretend that we do things for the first time in this country, whereas we can in fact look overseas for lessons, and we do not have to look very far. In France, where successive Governments increased family-related welfare with weak links towards work or contribution, it has created a wider resentment in society. Any successful welfare system must have an eye to legitimacy and consent from the wider population for it to exist.

[Dr Arthur]

We do not have to look to France. This is fundamentally an issue that many families face around balancing their budgets; many of them are having to get second jobs. Perhaps we can learn from the right hon. Gentleman’s experience, because he has been forced out to get a second job to make ends meet. Perhaps he can give some droplets of experience to those people who are struggling to make ends meet.

[Kit Malthouse]

I am glad that the hon. Gentleman is paying attention to my entries in the Register of Members’ Financial Interests, but, as he will know, I have not been forced out to get a job. I founded my business 30 years ago; I am one of the few people in this House who has created jobs by the sweat of my own hands, rather than just talking about it. Frankly, I pay the Sainsbury’s bill, the mortgages and all the rest of it for all my employees every single month, and I am proud to do so. Maybe he could learn some lessons, by spending time with some businesspeople, about what it is to make true fiscal and economic decisions.

Let me return to my third point, which is about legitimacy. One thing that was found in France was a rise in resentment, which resulted in President Macron taking specific steps to means-test the access to family welfare. French political scientists will point to the rise of the National Rally in France directly stemming from a mishandling of the welfare system and a growth in resentment in those who did not participate in it.

I am afraid that today we see that writ large in the Order Paper in the Reform party’s reasoned amendment, which was not selected. It calls for open discrimination in our welfare system against those who do not have parents born entirely in this country. I must declare an interest as I am afraid that includes two of my children, who were not born to a British citizen. It also includes the children of Members of Parliament who sit for the Reform party. There is something grotesque about seeking legislation that would downgrade the citizenship of one’s own children.