Universal Credit (Removal of Two Child Limit) Bill

Tom Tugendhat Excerpts

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

[Steve Darling]

I thank the hon. Member for her non-partisan intervention. The Liberal Democrats opposed the two-child limit. We are on the record as doing that and I am delighted we did so. A Joseph Rowntree Foundation report published last week highlights how tackling poverty has flatlined since 2005, so the Liberal Democrats welcome this step forward in ending the two-child limit.

This measure is not just about children; it is about the future of our country and investing in people and believing in them. The Secretary of State alluded to the fact that youngsters have worse education outcomes, higher levels of mental health challenges later in life, and are unable to contribute to society as strongly as they could. The taxman takes less from them later in life, because their jobs are not so profitable.

[Tom Tugendhat (Tonbridge) (Con)]

I am slightly surprised that the hon. Gentleman is claiming that less is taken off them. Student loans, which could have received this £3 billion that this change will cost, are effectively taxing young people at 70% or 71%. Does he not think that that tax rate is high enough?

[Steve Darling]

I thank the right hon. Gentleman for his thoughts on that. I remind my colleague that shortly after the coalition Government, the Conservatives stripped away an awful lot of the safeguards around student loans, and that continues. It is not a happy situation for many students up and down the country that the Tories robbed them of those safeguards.

On a visit to Torbay hospital, I spoke to one of its senior directors. She sees her role as extremely important, because it is not just about treating people but tackling deprivation in Torbay. She comes across some patients who believe that a lifespan of up to around 60-something is adequate. That reflects the levels of deprivation in my community, which this measure will help to tackle. It will lift 2,000 children out of poverty in Torbay. We should have high ambitions for our country. As Liberal Democrats, we believe the best days of our country are ahead of us. By lifting the two-child limit, we include more people in a brighter future.

--- Later in debate ---

[Tom Tugendhat (Tonbridge) (Con)]

I have heard so many well motivated and moving stories about human misery, and the truth is those are the stories of our country. Those are the stories of a country that has tried for over 100 years to introduce a social welfare service to look after the poorest in our community and to do the best for them, and, in various different ways, all of us—and I do mean all of us—seek to do that. We may have different expressions and different understandings of quite how that works, but we do all try to look after those who are most vulnerable in our society.

But I think the division here comes in a very fundamental way, and it comes in the questions that one has to ask oneself when one looks at the way in which this economy, this society and this community grow. When I say economy, I mean not just the bald rows of figures that accountants and bankers add up, but the way in which the Greeks meant it: the way a home works together, the way people interact to bring about a community and to bring about a whole. How does that work? How do we get growth? How do we get investment and reward at the right point so that we actually see the progress that society can bring?

We have seen societies, time and time again, doing the well-meaning thing, and ending up costing everyone. We can read the constitutions and the promises of Governments and nations over the last century and see the human misery they led to—not because they were evil, but because those intentions were not aligned with the reality of a human economy. We have seen it time and time again.

Sadly, although we are now having a debate about the two-child benefit cap and about £3 billion, we are really having a debate about what it means to grow an economy. Although the Liberal Democrat spokesperson, the hon. Member for Torbay (Steve Darling), made a joke out of it, the reality is that we are seeing young people paying something like 70% tax—and some are therefore making the choice to go to Dubai, to Portugal, to the United States or to Australia. That connection between young and old people is being broken, with families left in need of not only the economic connection but of the human connection between them.

[Dr Scott Arthur (Edinburgh South West) (Lab)]

Will the right hon. Member give way?

[Tom Tugendhat]

I will not.

This debate is not just about cash; it is fundamentally about people. There has been an attempt again to pretend that the only interaction between people is that which is metricked, divined and organised by the state, and that simply is not true. It simply is not true to say that, unless the state provides it, it does not count. Yet, again and again, we hear the same thing.

Yes, I know that the Conservative Government left taxes high, but many people seem to have forgotten that covid seemed to increase the debt enormously, and that when some of us tried to vote against various lockdowns, we were accused of murdering various groups, depending on whoever the then Leader of the Opposition seemed to be siding with.

[Several hon. Members rose—]

[Tom Tugendhat]

I have said I will not give way. It is true that what we are seeing in the UK today is a legacy: of poor decisions on covid that some of us condemned at the time; of promises made in the last year or two; and of debts to those who challenged leadership in the last six to 12 months. We are now seeing, falling on those who are working, a level of burden that is growing and growing, and people are voting with their feet, either by not working or by leaving.

I am afraid that what we are seeing here is a false choice. We are seeing a Government making promises that will never be able to be cashed. We are seeing a Government adding to a debt, not of £2 trillion—the one that they state—but of £12 trillion or £13 trillion, depending on how we count pension liabilities, private finance initiatives and many of the state’s other debts.

The reality is that this country is broke, and to a degree that nobody in this House seems to appreciate—certainly nobody on the Government Benches. We simply do not have the understanding here, among the noble and well-meaning socialists, that the reality is that they are racking up debts for their children that will mean that this state will be impoverished, we will be left weaker and the whole country will be poorer.