Latest news with #twoChildCap
The Independent
3 days ago
- Business
- The Independent
Scottish Government sets date for end of two-child cap in Scotland
The Scottish Government has announced when the two-child cap will effectively end in Scotland. The Social Justice Secretary said the Westminster policy will be mitigated from March 2 next year – just weeks before the Holyrood election. Shirley-Anne Somerville said the move will lift 20,000 children out of relative poverty, according to Scottish Government estimates. The decision was first announced last year but First Minister John Swinney said his Government needed time to set up a system to mitigate the cap. Introduced by the last Conservative UK government, the two-child cap limits benefits in most cases to the first two children born after April 2017. Labour has been reluctant to end the cap, citing economic reasons, but in May the Prime Minister said he will be 'looking at all options' to tackle child poverty, when asked about his intentions on the policy. Ms Somerville said Scotland cannot wait for a decision at Westminster. She said: 'The Scottish Government has consistently called on the UK Government to end the two-child cap. 'Reports suggest that they are looking at the impact it is having. 'But the evidence is clear and families and Scotland can't wait any longer for the UK Government to make up its mind to do the right thing and scrap the cap once and for all. 'The two child limit payment will begin accepting applications in March next year.' She said the policy will begin 15 months after the initial announcement, which she said is the fastest a social security benefit in Scotland has ever been delivered. She added: 'This builds upon the considerable action we have taken in Scotland, including delivering unparalleled financial support through our Scottish child payment, investing to clear school meal debts, and continuing to support almost 10,000 children by mitigating the UK Government's benefit cap as fully as possible. 'However, austerity decisions taken by the UK Government are holding back Scotland's progress. 'Modelling published in March makes clear that if the UK Government act decisively on child poverty, they could help to take an estimated 100,000 children out of poverty this year.' The Scottish Fiscal Commission said the mitigation will cost around £150 million next year, before rising to nearly £200 million by the end of the decade. In March, the Institute for Fiscal Studies warned the policy could harm incentives to work because some of the lowest-paid workers could earn more on welfare than in employment. The move has been welcomed by anti-poverty charities, who have urged the UK Government to scrap the cap, with the Child Poverty Action Group saying the move would lift 350,000 children across the UK out of poverty.
BBC News
3 days ago
- Business
- BBC News
Scottish government to end two-child benefit cap from March
The Scottish government will effectively scrap the two-child benefits cap north of the border from 3 March next year, ministers have announced. The UK-wide policy prevents parents from claiming universal credit or child tax credit for more than two children, with a few Scottish government will mitigate the cap by offering payments to affected families. Social Justice Secretary Shirley Anne Somerville said the move would help keep 20,000 children out of relative poverty. The payments are due to start two months before next year's Scottish Parliament election. What is the two-child benefits cap? The two-child cap prevents most families from claiming means-tested benefits for any third or additional children born after April was introduced by Conservative ministers as part of cost-cutting measures. It has been kept in place by Sir Keir Starmer's Labour administration. However, Labour ministers have indicated in recent months that they could scrap the said the Scottish government could not wait for a decision at minister said payments would be delivered 15 months after the government announced it would mitigate the cap, which she said was the fastest a social security benefit in Scotland had ever been added: "This builds upon the considerable action we have taken in Scotland, including delivering unparalleled financial support through our Scottish Child Payment, investing to clear school meal debts, and continuing to support almost 10,000 children by mitigating the UK government's benefit cap as fully as possible." In its Budget announcement last year, the Scottish government vowed to provide payments to families affected by the policy by April 2026, or earlier if said it needed data and assistance from the UK government before it could introduce the Scottish Fiscal Commission has estimated that 43,000 children in Scotland will benefit from mitigation of the cap in 2026-27. It predicts this will cost £155m in that year, rising to almost £200m by Institute for Fiscal Studies has estimated that mitigating the policy would reduce relative child poverty in Scotland by 2.3 percentage points, equivalent to 23,000 think tank described removing the cap as a "highly cost-effective policy", with an estimated annual cost of £4,500 per child lifted out of poverty. 'Real hardship' However, it has also warned mitigation could weaken incentives to work because some of the lowest-paid workers could earn more on welfare than in government's announcement was welcomed the Child Poverty Action Group in John Dickie said: "It is absolutely right that the Scottish government acts to effectively scrap the UK government's two-child benefit limit in Scotland. "Families affected, most of whom are working, are facing real hardship and the sooner these payments can be made the better."He also called on the UK government to scrap the policy "as a matter of utmost urgency". Prime Minister Sir Keir Starmer has previously said he would consider "all options" to tackle child poverty.
The Sun
30-05-2025
- Business
- The Sun
Full list of benefits not affected by two-child rule – as government mulls axing cap
PARENTS could still claim thousands of pounds in support despite the two-child benefit cap — as ministers come under pressure to scrap it. Here is everything you need to know. 1 WHAT IS THE TWO CHILD CAP? The rule, which limits child-related payments in Universal Credit and tax credits to just two children per household, doesn't apply to all benefits. It means families with three or more kids may still be missing out on cash they're eligible for. Prime Minister Sir Keir Starmer yesterday refused to rule out scrapping the rule, which currently limits benefit payments to two children per household for Universal Credit and tax credits. It means that families can miss out on up to £3,455 a year for a third or later child born after April 2017. The policy, introduced in a bid to keep welfare spending in check, has faced criticism from some MPs and campaigners. But scrapping the cap could cost the Treasury around £3billion annually, and would likely require new tax rises or spending cuts elsewhere to fund. Visiting a factory in Warrington, the PM said he was 'determined to drive down child poverty' but stopped short of making a firm commitment. Asked repeatedly whether the rule would go, Sir Keir said ministers were "looking at all options". While the cap still applies to some benefits, others remain unaffected – and families may still be eligible for support depending on their circumstances. Here's the full breakdown. Three key benefits that YOU could be missing out on, and one even gives you a free TV Licence CHILD BENEFIT This universal benefit is paid for every child, regardless of how many you have. £25.60 a week for the first child £16.95 a week for each additional child If you are claiming child benefit for a child under 12, you also receive National Insurance (NI) credits. Child Benefit also comes with National Insurance credits, which count towards your State Pension. Note: If you or your partner earn over £60,000, you may be liable for the High Income Child Benefit Charge, which can reduce or eliminate the payment. How do I claim child benefits? APPLYING is straightforward and can be done in minutes at or through the HMRC app. Parents with a newborn baby should make a claim online as soon as possible and could then receive their first payment in as little as three days. You can also backdate claims for up to three months. Parents can make a claim and then choose to opt out of receiving Child Benefit payments can still receive National Insurance credits if one parent is not working. National Insurance credits build up your entitlement to the state pension. DISABILITY LIVING ALLOWANCE (DLA) DLA is available for children under 16 who have disabilities and require extra care or mobility support. It's not affected by the two-child cap, and is worth £28.70 to £184.30 a week, depending on the level of need. Once a child turns 16, they must apply for Personal Independence Payment (PIP) instead. PERSONAL INDEPENDENCE PAYMENT (PIP) PIP is for people aged 16 to 64 with a long-term health condition or disability. It is not subject to the cap, and multiple eligible individuals can claim within the same household. The benefit is worth up to £184.30 a week for those entitled to both the daily living and mobility components. GUARDIAN'S ALLOWANCE This benefit is for individuals raising a child whose parents have died. Paid at £21.75 a week per child Paid in addition to Child Benefit Unaffected by the two-child limit You must be claiming Child Benefit and meet the qualifying criteria around guardianship. ADOPTION ALLOWANCE Paid by local authorities, this benefit supports adoptive families who may face extra costs related to a child's care needs. There's no cap on how many adopted children can qualify, and payments vary depending on your financial circumstances and the child's needs. LOCAL WELFARE SCHEMES These include support such as: Discretionary Housing Payments The Household Support Fund Free school meals These schemes are not restricted by the two-child cap, but eligibility and availability vary by council. UNIVERSAL CREDIT EXEMPTIONS While the child element of UC is capped, exceptions do exist, including: You have adopted them or other children in your household You receive guardian's allowance for them or other children in your household They are the second (or more) child born in a multiple-birth They or other children in your household are the offspring of one of your children who is under 16 years old They or other children in your household are not your child or stepchild, and you look after them under a court order They or other children in your household are not your child or stepchild and you look after them under an arrangement with Social Services (except for formal foster care) They were conceived as a result of rape, and you do not live with the perpetrator As the government continues to review the policy, no final decision has been made — but for now, these benefits remain available outside the cap. To check if you're eligible, visit or speak to an independent benefits advisor. Who's exempt from the two-child benefit cap? The two-child benefit cap means that you can only get more child tax credit or Universal Credit for your third (or more) child if: They were born before April 6, 2017 They are disabled (disabled child element only) You qualify for an exception in child tax credit or special circumstances apply in Universal Credit You qualify for an exception or special circumstances for each third (or subsequent) child if: You have adopted them or other children in your household You receive guardian's allowance for them or other children in your household They are the second (or more) child born in a multiple-birth They or other children in your household are the offspring of one of your children who is under 16 years old They or other children in your household are not your child or stepchild, and you look after them under a court order They or other children in your household are not your child or stepchild and you look after them under an arrangement with Social Services (except for formal foster care) They were conceived as a result of rape, and you do not live with the perpetrator .
Daily Mail
28-05-2025
- Business
- Daily Mail
EXCLUSIVE Nigel Farage is 'sticking two fingers up to hardworking British families' by calling for the two-child benefit cap to be scrapped - and he sounds like Jeremy Corbyn, say Tories
Nigel Farage has been accused of 'sticking two fingers up to hardworking British families' by calling for the two-child benefit cap to be scrapped. The Reform UK leader used a speech on Tuesday to commit his party to axing the welfare restriction, claiming it was 'the right thing to do'. Mr Farage also vowed to fully reverse the winter fuel payment cuts made by Labour, repeated Reform's pledge to raise the tax-free income allowance to £20,000, and outlined plans for a transferable marriage tax allowance. But he is being criticised for 'fantasy economics' after he stuggled to defend his plans for a spending splurge of up to £85billion. In an article for MailOnline, which can be read below, senior Tory MP Helen Whately claimed Mr Farage's agenda 'sounded like it was handwritten by Jeremy Corbyn '. 'He exposed himself as a populist, to the Left of Labour, cosy with the unions and economically illiterate,' the shadow work and pensions secretary writes. 'It's not just on the numbers, which by his own admission even he doesn't think add up, but on his values too. 'He thinks taxpayers should pick up the bill for people on benefits to have an unlimited number of children. That simply isn't fair or economically credible.' The two-child benefit cap was first announced in 2015 by the Conservatives and came into effect in 2017. It restricts child tax credit and universal credit to the first two children in most households. Prime Minister Sir Keir Starmer has not ruled out lifting the cap after coming under increasing pressure by Labour MPs to do so. But Tory leader Kemi Badenoch, speaking at the weekend, said the limit is 'fair' and said Britons 'shouldn't have to rely on benefits to have your children'. She added that taxpayers would think 'if you can't afford to have lots of children, then you shouldn't do so'. Ms Whately claimed, by vowing to scrap the two-child benefit cap, Mr Farage had 'stuck two fingers up to hardworking British families who live within their means'. She added: 'People who work hard, get on with their job and provide for themselves should be supported by effective public services from a smaller state. 'But not according to Farage, who would ensure more and more of working peoples' pay packets are taken away from them to pay for those on benefits. That is not right.' The Tory frontbencher said Mr Farage was 'telling people what he thinks they want to hear with no regard for reality' as he attempts to woo Labour voters to win power. In his speech on Tuesday, Mr Farage said Reform was built around three key principles of 'family, community and country'. 'That is why we believe lifting the two-child cap is the right thing to do,' he said. 'Not because we support a benefits culture, but because we believe for lower-paid workers this actually makes having children just a little bit easier for them. 'It's not a silver bullet, it doesn't solve all of those problems. But it helps them.' Nigel Farage's mask has slipped: His agenda could have been written by Jeremy Corbyn By Helen Whately, Tory MP and shadow work and pensions secretary Nigel Farage's mask has slipped. He exposed himself as a populist, to the Left of Labour, cosy with the unions and economically illiterate. His agenda sounded like it was handwritten by Jeremy Corbyn. It's not just on the numbers, which by his own admission even he doesn't think add up, but on his values too. He thinks taxpayers should pick up the bill for people on benefits to have an unlimited number of children. That simply isn't fair or economically credible. In doing so, he stuck two fingers up to hardworking British families who live within their means. People who work hard, get on with their job and provide for themselves should be supported by effective public services from a smaller state. But not according to Farage, who would ensure more and more of working peoples' pay packets are taken away from them to pay for those on benefits. That is not right. It was like Left-wing extremists, many of whom have been banished even from the Labour Party, were using Farage as a sock puppet. It was big government, high tax and high spend with no regard for the consequences. In other words: fantasy economics. One of the biggest challenges facing our country is the spiralling welfare budget. Labour are waking up to this but don't have a plan. Reform don't even get it. Their only suggestion so far is to increase the benefits bill by lifting the two child cap. What we need is a principled approach properly thought through. More people in work. Fewer people claiming who don't need to. That requires hard thinking and tough choices and the only party capable and committed to doing that at the moment is the Conservatives. We need our leaders to tell it how it is, not just tell people what they want to hear so they can get in – Keir Starmer's already tried that one. Using our values and principles to guide us through the complex challenges facing the country - not the kind of client state populism that has drained the vitality from some European economies. In Parliament, we have had our shoulders to the wheel, forcing the Prime Minister to see sense. But Farage isn't interested in that. Last week for example, rather than hold Labour to account during the Brexit surrender summit, the Chagos Islands surrender, the Winter Fuel u-turn, Farage was nowhere to be seen –preferring the sun loungers to the green benches. It says it all. Conservatives have strong values of sound money and a clear vision of supporting people into work. That is the opposite of what Nigel Farage is promising, who is just telling people what he thinks they want to hear with no regard for reality. Voters heard the same thing from Labour last year and have been paying for it ever since with higher taxes, higher inflation and reams of red tape choking private enterprise. We will continue to do the hard yards, and expose these mad plans for what they are.
The Sun
27-05-2025
- Business
- The Sun
Sir Keir Starmer has ‘no mandate' to scrap two-child benefit cap, warns Shadow Chancellor Mel Stride
SIR Keir Starmer has 'no mandate' for scrapping the two-child benefit cap, Shadow Chancellor Mel Stride warned yesterday. The top Tory blasted the PM for preparing to splurge billions on ditching another of his election pledges in sop to Labour lefties. 3 3 In the build up to July's ballot, Sir Keir declared he wouldn't abandon the cap, and didn't include any policy around abolition in his party manifesto. Furious Mr Stride said: 'He promised he wouldn't do it, but now it looks as though he's going to break that promise and spend billions more. 'Reversing the cap isn't just irresponsible, it's unfair. " Labour's desperate U-turns show they can't be trusted with your money." It came as Education Secretary Bridget Philipson yesterday said scrapping the cap, which would cost £3.6bn a year, is an option 'on the table' for the Treasury. Asked whether ministers are planning to abolish the cap, she told Times Radio: "It's on the table. "No measures are off the table." The Education Secretary added: "We've always been clear about that and of course social security is an important element of how we tackle child poverty. "It's not the only area. Childcare plays an important role, skills, how we ensure that more people are able to get back into work. "But of course we can't ignore the impact of social security changes, social security changes that were introduced by the Conservatives that a Labour government would not have introduced in the first place.' 3
