William Eichler 04 November 2019

Two-child benefit limit ‘crude’ and should be abolished, MPs say

MPs have called on the Government to lift the two-child limit and return to providing support for all children through the benefits system.

Families are not able to claim child benefits for any third or subsequent child born on or after 6 April 2017 under the Government’s two-child limit on benefits.

The Government argues that the policy means families claiming benefits will face the same financial choices about having children as families who are supporting themselves solely through work.

However, a new report from the Commons Work and Pensions Committee has concluded that the limit ‘fails to achieve the Government's own objectives’ and has consequences that ‘no Government should be willing to accept’.

The policy assumes that all pregnancies are planned and in full knowledge of the Government's social security policy, assumptions which ‘do not hold true’, according to the committee.

The committee also said that the distinction between families on benefits and those who are working is ‘crude and unrealistic’. The Government’s own statistics reveal that no such simple distinction exists.

As of April 2019, 72% of families receiving tax credits were working families, while 28% of working age housing benefit claimants are ‘in employment and not on passported benefit’. As of September 2019, 33% of universal credit claimants were recorded as in employment.

The Government also argues that the two-child limit might encourage parents to increase their incomes from work.

However, the committee says that this is not supported by the evidence. Instead the lack of affordable childcare and transport costs means that parents cannot increase their working hours to compensate for losses. ‘Any family in this country, except the super-rich, could fall foul of the two-child limit if their circumstances changed for the worse,’ said Frank Field, chair of the committee.

‘This is exactly why social security must act as a national insurance scheme covering people when they’re most exposed to hardship – not increase it.’

A spokesperson for the Department for Work & Pensions said: ‘This policy ensures fairness by asking families getting benefits to make the same financial choices as people who support themselves solely through work, and there are exemptions and safeguards in place.’

SIGN UP
For your free daily news bulletin
Highways jobs

Programme Team Leader

Royal Borough of Greenwich
PO3 - £45,750 to £49,056
Are you passionate about helping people into work and building strong employer partnerships? Join our GLLaB team as a Programme Team Leader Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Rough Sleeping Resettlement Officer

Royal Borough of Greenwich
SO2 - £40,182 to £42,060
An exciting opportunity has arisen within the Housing Inclusion Service for a passionate and dedicated individual Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Environmental Health Officer

Royal Borough of Greenwich
PO2 - £42,771 to £45,750
We have an exciting permanent opportunity for an Environmental Health Officer Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Catering Assistant

Essex County Council
Up to £25081.00 per annum
Catering AssistantFixed Term, Full Time£25,081 per annumLocation
Recuriter: Essex County Council

Technical Administration Officer - Occupied

Royal Borough of Greenwich
Scale 5 - £32,535 to £33,987
Responsive Repairs are looking for two Technical Administration Officers Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich
Linkedin Banner