A report commissioned by the Child Poverty Action Group (CPAG) in Scotland from the Centre for Research in Social Policy at Loughborough University has found a widening gap between the cost of raising a child in Scotland and actual family incomes, despite the significant impact of Scottish government policies and lower childcare costs.
New research shows affected families can’t afford what they need for their kids. 59% (210,000) families caught by the limit are working. Today’s first instalment of cost-of-living emergency payment won’t do enough.
The Universal Credit (Removal of the Two Child Limit) Bill is a Private Members’ Bill brought forward by the Lord Bishop of Durham to remove the limit in universal credit (UC) that restricts support to just the first two children in a family. The second reading will take place on Friday 8 July.
This briefing summaries the findings of two papers from the Benefit Changes and Larger Families research study which explore whether the two-child limit has affected families’ decisions about how many children to have.
Last month, chancellor Rishi Sunak stood before the dispatch box and delivered his third and most significant budgetary response to the current cost of living crisis. As he announced the measures, he pledged: 'We need to make sure that for those whom the struggle is too hard…and for whom the risks are too great…they are supported… We will make sure the most vulnerable and the least well off get the support they need at this time of difficulty.'
Under the two-child limit, parents are not entitled to any extra support through universal credit or child tax credit to help with raising a third or subsequent child born after 6 April 2017. This means they lose out on up to £2,935 a year, and puts families’ budgets under enormous strain. Five years after the introduction of the two-child limit, an estimated 1.4 million children in 400,000 families are now affected by the policy. Unless it is abolished, the number of children affected will reach 3 million, as more children are born under the policy.
This report focuses on some of the problems UC claimants are experiencing both making a claim for UC and receiving accurate payments, which appear to be caused by the digitalisation and automation of the UC system. Claimants who have specific life circumstances are experiencing similar problems because the UC computer system seems unable to calculate their UC payment correctly and in accordance with the law.
This joint report from CPAG, the Church of England and the Welfare Reform and Larger Families research project presents the latest estimates of the number of families affected by the two-child limit, and provides an insight into the impact of the policy using survey data from families directly affected by it. It is a continuation of a series of annual reports tracking the impact of this policy over time.
In August, Child Poverty Action Group and the Church of England published a report, Poverty in the Pandemic, which offered a glimpse into the lives of low-income families trying to survive the impact of the coronavirus pandemic. This report provides an update on how families with children are managing financially, based on an additional 393 online survey responses received in the period since the last report was published, up to the end of November 2020.