Universal Credit (Removal of Two Child Limit) Bill

Siân Berry Excerpts

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

[Siân Berry (Brighton Pavilion) (Green)]

The Government have drawn this Bill too narrowly. It will, as Members have mentioned several times, leave at least 150,000 children in larger families with no extra help at all. For example, Maryam, highlighted by the Z2K charity, is a lone parent of three. She fled from domestic abuse and relies on us for her income while she restarts her life. Abolishing the two-child limit alone will not improve her life one bit, because she is affected by both the two-child limit and the overall benefit cap.

In December, after this policy change was finally announced—about 18 months after the Government should have taken action—I asked Ministers how many families and children would be excluded from the extra help, and they told me that that information was not available. It is beyond me how they could decide that this policy would leave out children without knowing exactly how many. DWP data shows that there are nearly 1,000 families subject to the benefit cap in my constituency, but I was not told—and I still do not know—how many of my families will be excluded from the provisions in the Bill. We do know how many children in total will be left out and not helped. The impact assessment for the Bill says that 50,000 families will see no gain at all, and that another 20,000 families in the first year will only partially gain before the household benefit cap kicks in for them too. In total, at least 200,000 children will not get the help they need from the Government.

The benefit cap, like the two-child limit, was always unjust. Introduced by the Conservatives who used headlines and misrepresentations, they drove up stigma and demonisation—demonisation of children in poverty and their parents. The Conservatives failed to see that social security is security for everyone, and that this spending pays back in wider benefits that the Treasury and the country will see. We should not limit lives through prejudice,

[Kirsty Blackman]

Does the hon. Member share my concerns that the arguments that are being made by the Labour Government in cancelling the two-child cap were applicable 19 months ago, and that 61,000 children could have been kept out of poverty if the Government had agreed with us in debates on the King’s Speech, rather than waiting until now?

[Siân Berry]

I thank the hon. Member for pointing out yet again that some of us in this House voted to move on this issue many, many months ago, and it is about time that the Government caught up.

I utterly reject the racist agenda of Reform’s objections. The fact is that the Bill is not wrong, but it fails to do right by far too many children, so what will the Government do to fix that? The scope of the Bill could be widened by the Government to remove the benefit cap. This could be done through a motion or even by a simple amendment, which I have been trying to achieve. It is down to the Government to listen to Members who have spoken on this issue today. I quite simply ask them whether they will now act.

--- Later in debate ---

[Sir Stephen Timms]

I will not just at the moment. Poverty does immense harm, as we have heard, to children and their future prospects. In the classroom, children eligible for free school meals are on the wrong end of an education gap that reaches 19 months by age 16. They earn around 25% less at age 30. Recent research by Liverpool University has shown that children growing up below the poverty line are three times more likely to be not in education, employment or training as young adults. To tackle the NEET problem—as we must, with almost a million young people left NEET by the last Government—we have to tackle child poverty, too.

We have heard arguments in this debate that we are piling up costs for the future. Actually, it is the failures of the past that have piled up those costs, and we are now having to address that. The costs of child poverty play out throughout the lives of those affected. They play out in our social security system, in the NHS and in other public services, too. The Tories claim that by making those cuts, they were saving money. What they were doing, in fact, was heaping up massive costs of future failure, which we are all now having to pick up.

The Bill will deliver a better future for our children and for the country. Removing the two-child limit in universal credit will lift 450,000 children out of poverty by the end of this decade, and that figure rises to more than half a million children alongside other measures in our child poverty strategy. That is a generation less likely to struggle with their mental health, more likely to do well at school and more likely to be in work as young adults and to thrive in their future working lives. That is a generation with the capacity to thrive. That is the future we are choosing to build.

[Siân Berry]

The Government narrowed the scope of the last benefits Bill, and it could widen this Bill to take in the wider benefit cap, too. The Chancellor who could find the money for that is right next to the Minister. Can the Minister explain why, despite the interest in lifting the overall benefit cap in the Chamber today, according to the impact assessment the only options assessed were doing nothing or this very narrow measure?

[Sir Stephen Timms]

The change for which I think the hon. Lady is arguing would make a relatively modest alteration to the figures. There is a real advantage in the benefit cap, in terms of the incentive to work. We are not proposing to change that, and in the changes that we are making we are maintaining that incentive very robustly. This is a change from the choices of the last Government, which left us with a third of primary schools running food banks.

I echo the tribute paid by my hon. Friend the Member for Liverpool Riverside (Kim Johnson) to the work of the End Child Poverty Coalition. Members including my hon. Friend the Member for St Helens North (David Baines) rightly referred to the Child Poverty Action Group, and others mentioned the Joseph Rowntree Foundation. I pay tribute to all those who have campaigned, successfully, for the change that we are making.

The shadow Secretary of State, the hon. Member for Faversham and Mid Kent (Helen Whately), said in her opening speech that her party did not accept the relative poverty definition. As we were reminded during the debate, her party embraced that definition in 2010—it was part of the change that was made at the time—but between 2010-11 and 2023-24, even absolute poverty rose. It was higher at the end of that period than it had been at the beginning. That was an extraordinary feature of her party’s record in government.

I am grateful to my hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams) for her contribution to the debate and for the work of her Work and Pensions Committee, alongside that of the Education Committee, chaired by my hon. Friend the Member for Dulwich and West Norwood (Helen Hayes), in scrutinising our child poverty strategy. The points that she made were absolutely right.

My hon. Friend the Member for Lewisham East (Janet Daby) was, I think, the first to draw attention to the struggle that teachers are having in supporting children in classes. According to survey evidence, in 38% of schools staff are currently paying out of their own pockets to provide essentials for their pupils because their parents cannot afford to buy them. They have full-time roles tackling hardship, taking away funds that ought to be spent on education.

The hon. Member for Hinckley and Bosworth (Dr Evans) made a thoughtful speech, as he often does, but he was wrong. He said that the extra money would be for people because they were not working. It was pointed out by my hon. Friend the Member for West Dunbartonshire (Douglas McAllister), my hon. Friend the Member for Corby and East Northamptonshire (Lee Barron)—in a spirited contribution—and my hon. Friends the Members for Ipswich (Jack Abbott), for Isle of Wight West (Mr Quigley), for Southampton Itchen (Darren Paffey), for South Derbyshire (Samantha Niblett), for Nottingham East (Nadia Whittome), for Bishop Auckland (Sam Rushworth) and for Peterborough (Andrew Pakes) that the great majority of the beneficiaries of this measure are people in work, and as a result the hon. Gentleman’s argument crumbled away.