Latest news with #TwoChildLimitPayment
The Herald Scotland
4 hours ago
- Business
- The Herald Scotland
Two-child benefit cap to end in Scotland from March 2026
The mitigation was first announced in 2023, but First Minister John Swinney said ministers needed time to put a system in place. READ MORE The benefit cap was introduced by then Chancellor George Osborne in his 2015 Budget. The policy, which came into effect in 2017, prevents households claiming child tax credit or universal credit from receiving support for a third or subsequent child born after 6 April that year. While popular with voters, campaigners have long blamed the limit for a surge in the relative poverty rate for children. It rose from 27% to 30% between 2010–11 and 2022–23 — an increase of 730,000 — with the rise entirely driven by a surge in relative poverty among families with three or more children. Labour is under pressure to reverse the policy, with Sir Keir Starmer saying he would be 'looking at all options' to tackle child poverty. The UK Government has so far resisted calls to scrap the cap, instead announcing a child poverty taskforce to look at tackling the "root causes" of child poverty., which essentially kicked the issue into the long grass. Shirley-Anne Somerville said the Scottish Government could not wait for the UK Government (Image: Newsquest) Ms Somerville said Scotland could not afford to wait. 'The Scottish Government has consistently called on the UK Government to end the two child cap,' she said. 'Reports suggest they are reviewing the policy's impact, but the evidence is clear. Families — and Scotland — cannot wait any longer for Westminster to make up its mind. 'The Two Child Limit Payment will begin accepting applications in March next year.' She noted the policy would launch just 15 months after it was announced — the fastest rollout for a social security benefit in Scotland to date. 'This builds upon the considerable action we have taken, including delivering unparalleled financial support through our Scottish Child Payment, investing to clear school meal debt, and continuing to support almost 10,000 children by mitigating the UK Government's benefit cap as fully as possible,' she added. 'However, austerity decisions taken by the UK Government are holding back Scotland's progress. Modelling published in March shows that if the UK Government acted decisively on child poverty, they could help lift an estimated 100,000 children out of poverty this year.' According to the Scottish Fiscal Commission, the new policy will cost around £150 million in its first year, rising to nearly £200m by the end of the decade. In March, the Institute for Fiscal Studies warned the policy could unintentionally discourage some low-income families from working more. While they said the Scottish Government mitigation was a cost-effective way to reduce child poverty, it could worsen 'cliff edges' in the benefits system. These occur when small increases in earnings result in large losses in benefits, meaning some families could be financially worse off by working extra hours. Anti-poverty charities have welcomed the Scottish Government decision and repeated calls for Westminster to abolish the cap nationwide. READ MORE John Dickie, Director of the Child Poverty Action Group in Scotland, 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. 'The two child limit is the single biggest driver of child poverty across the UK. The Westminster Government must scrap it at source as a matter of utmost urgency. 'When it does, that will free up resources in Scotland to increase the Scottish Child Payment to the £40 a week that campaigners, including CPAG, have called for — helping make even more progress toward meeting Scotland's child poverty targets.'
The National
5 hours ago
- Politics
- The National
Scottish Government names date for ditching two-child cap
Social Justice Secretary Shirley-Anne Somerville has said the cap – which was introduced by the Tories at Westminster – will be lifted on March 2, according to the Daily Record. The two-child limit denies child allowances in Universal Credit and tax credits to third or subsequent children born after April 2017 and has been kept in place by Keir Starmer's Labour UK Government. An associated so-called 'rape clause' grants exemptions for a child born as a result of 'non-consensual conception', which has remained highly controversial since it was put in place. The Scottish Government pledged to mitigate the policy in its Budget. READ MORE: Swinney: Independence the 'defining choice for this generation' Under the SNP's mitigation plan, payments could work out at nearly £3500 for children affected. Somerville has said the plan will mean there will be 20,000 fewer children in relative poverty next year. She added it would be the fastest a Scottish social security benefit had been delivered. 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. At less than 15 months from when we announced this in the Scottish budget, this will be the fastest that a Scottish social security benefit has been delivered. '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." READ MORE: UK must 'constrain Israel' after attacks on Iran, John Swinney says Somerville added that the UK Government was still "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," she said. In April, analysis showed the cap has dragged 30,000 more children into poverty since Labour took office. The Child Poverty Action Group (CPAG) carried out research which also suggested 350,000 children would be lifted out of poverty instantly at a cost of £2 billion, while the depth of poverty would be reduced for another 800,000. The organisation says 109 more children a day are pulled into poverty by the policy. Due to the fact the two-child limit applies to third or subsequent children born after April 2017, it is effectively still being rolled out, with more and more children affected every day. The number of children affected by the policy will continue to increase until 2035 when the first children born under the two-child limit turn 18.
Daily Record
11 hours ago
- Business
- Daily Record
SNP Government names date for abolition of two child benefit cap in Scotland
EXCLUSIVE: Social Justice Secretary Shirley-Anne Somerville provided more details of a policy that was the centrepiece of the SNP Government's Budget. SNP Ministers will scrap the two child benefit cap weeks before the beginning of the Holyrood election. Social Justice Secretary Shirley-Anne Somerville told the Record the curb on social security payments will be lifted from March 2nd next year. The limit was introduced by the previous Tory Government and restricts access to some means-tested benefits to two kids. After Labour Prime Minister Keir Starmer refused to axe the cap, First Minister John Swinney used his budget to promise his devolved government would step in. Under the SNP Government mitigation scheme, payments could work out at nearly £3,500 for affected children. Somerville, who will visit a nursery in Edinburgh today, said the policy will mean 20,000 fewer children will live in relative poverty next year. 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. At less than 15 months from when we announced this in the Scottish budget, this will be the fastest that a Scottish social security benefit has been delivered. '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.' Recent reports have suggested Starmer could axe the cap across the UK as part of the Government's eagerly-anticipated child poverty strategy.
