Scots campaigners have united to demand Labour chancellor Rachel Reeves axe the “terrible” two child benefit cap in her Budget. They say ending the “sibling tax” would pull 15,000 Scottish kids out of poverty.
Reeves will deliver the first Labour Budget in fourteen years after Keir Starmer’s general election win in July. Tax rises are expected as she tries to find around £40bn to avoid another round of austerity.
With child poverty levels on the rise, charities believe now is the time to end the Tory two child cap for universal credit and tax credits.
Children’s charities, equalities groups and anti-poverty campaigners in Scotland have joined a UK-wide call for Reeves to announce on Wednesday that the curb is going.
The UK statement reads: “12,500 children have been pulled into poverty as a direct result of the two-child limit to benefit payments since the new government came to power on 4th July. These children join 1.6 million others who are already living in households whose income is limited by the two-child limit.
“We call on the government to scrap the two-child limit in its first Budget next week to prevent more harm. We know that immediately scrapping the two-child limit is a necessary first step to begin to reduce the number of children in poverty across the UK today. Now is the time to act: children can’t wait. We are joined by over 120 national, regional and local anti-poverty organisations – all members of the End Child Poverty Coalition – in calling for this unfair ‘sibling tax’ to be scrapped.”
Members of the Coalition in Scotland include the Child Poverty Action Group, Aberlour, One Parent Families Scotland, and Barnardo’s. Children 1st, Engender, Close the Gap, Save the Children, the Coalition for Racial Equality and the Poverty Alliance have also signed up. Speaking on behalf of members of the Scottish signatories, John Dickie of the CPAG said:
“The two-child limit must be scrapped as a matter of utmost urgency. End Child Poverty members across Scotland and the rest of the UK see the terrible damage the policy is doing to families.
“Children being pulled into poverty really can’t wait any longer. We welcome the new UK government’s commitment to develop a child poverty strategy, but the bottom line is that no strategy can be credible if the two-child limit continues to pull over 100 more children into poverty each and every day.”
Recent CPAG data has shown that 109 kids are pulled into poverty in the UK for every day the policy remains in place. DWP statistics show 1.6m children are currently affected by the two-child limit – one in nine children.
Starmer refused to back abolition during the election on the grounds of cost, but Labour sources are hopeful the policy will be scrapped within two years. Labour MPs are not expecting the two child cap to be scrapped in the Budget, but they believe it could go as part of the multi-year spending review.
Reeves’ Budget is believed to include rises in national insurance contributions for employers, a move that could raise up to £20bn. Tax on inheritance and capital gains is also expected to rise and the fuel duty freeze may be binned.
A change in how debt is calculated, which could free up tens of billions for investment, has also been widely trailed. Key to the tax changes is raising resources for a big increase in NHS spending. Reports have suggested health spending could rise by £10bn a year, which would hand Holyrood around £1bn extra.
SNP MSP Collette Stevenson said: “We welcome this significant intervention by Scotland’s children’s charities, equalities groups and anti-poverty campaigners who are all in agreement that the two-child cap should be scrapped immediately. It is notable that the Labour party in Scotland has not joined calls for the cruel policy to be ditched with Anas Sarwar’s silence suggesting that he is once again prioritising his relationship with his London bosses over protecting the people of Scotland.
“If Labour is serious about tackling child poverty it must use this week’s Budget to finally get rid of the cap. Over 100 more children have been pulled into poverty each day since Keir Starmer came to power due to his refusal to ditch the cruel policy. I urge the Chancellor to finally see sense by using this week’s Budget to turn her back on the damaging austerity agenda and ditch this callous policy once and for all.”
A UK Government spokesperson: “No child should be in poverty – that’s why our Ministerial Taskforce is looking at all available levers across government as it develops an ambitious strategy to tackle child poverty. Tackling child poverty is a core part of our mission to give everyone opportunity and grow the economy. Alongside extending the Household Support Fund to help struggling families this winter, we are also taking bold action to support people into work to spread opportunity and prosperity to all.”
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