Response to consultation on mitigating the two-child limit in Scotland

Read our response to the Scottish government's consultation on its proposals to mitigate the two-child limit. 

In summary:

The Scottish Government’s own analysis shows the single most cost-effective way to reduce child poverty would be to end the two-child limit. CPAG, alongside many other organisations is advocating for the UK government to scrap the policy entirely.  Given the Scottish Government’s commitment and legal duties to eradicating child poverty, it is vital the two-child limit is mitigated in the meantime. Internal analysis by CPAG estimates that this measure could lift approximately 15,000 children out of poverty.

• 41% of children in poverty live in households with three or more children
• Economic growth and higher employment won’t bring child poverty down in isolation
• Many families become subject to the two-child limit following a change in circumstances rather than the birth of a child
• We agree that the Scottish Government should use the powers at s79 to top up UC as this offers the quickest route to putting money in families' pockets.
• Payments made to mitigate the two-child limit should be disregarded as income by the UK government as is the case with Scottish child payment and with bedroom tax and benefit cap mitigation through discretionary housing payments.
• As the mitigation approach proposed relies on topping up universal credit (UC) there are some families who will miss out on support because they are not in receipt of UC but would be if they were not subject to the two-child limit.
• It is important that families continue to be made aware they can apply to DWP for an exemption from the two-child limit. Families who are close to losing UC because they have earnings may be better applying for an exemption (if eligible) than mitigation, as the exemption will raise the threshold for earnings before their UC stops, whereas the mitigation will not.