THE SNP Government will abolish the two-child benefit cap for families in Scotland, the Finance Secretary has told MSPs.
Shona Robison made the announcement, which will see the Scottish Government mitigate the controversial Labour policy, as she delivered the draft Budget to Holyrood.
The two-child benefit cap, which was introduced under the previous Tory-run UK government and kept in place by Keir Starmer’s administration, prevents people from claiming benefits for their third or subsequent children.
It has been described as “the biggest driver of rising child poverty in the UK today” by the Child Poverty Action Group.
Robison told MSPs that ending the cap in Scotland would lift 15,000 children out of poverty.
The Finance Secretary said: “Our first priority is tackling child poverty.
“The two-child cap is a pernicious part of the UK welfare system, introduced by the Tories it has caused misery for children and families in Scotland.
“Many expected an incoming Labour Government to abolish the cap. We've waited, but Labour haven't delivered. This SNP Government will.”
Robison went on to challenge Labour on the cap, which the Scottish Government said has not yet been costed because the UK Government was too late in delivering the information it needed to do so.
She said: “The detail work of building the system will start with this Budget, but implementation requires the cooperation of the UK Government.
“They control the Department for Work and Pensions, which means they control the data, we don't.
“But we have a year, and we'll work as hard as possible in 2025 so we can start paying families as early as we can in 2026 … But be in no doubt, the cap will be scrapped.
"But either way, let me be crystal clear, this Government is ending the two-child cap and in doing so will lift over 15,000 Scottish children out of poverty.”
Responding to the SNP minister’s announcement, Save The Children Scotland said it was “delighted” to see the action to mitigate the Westminster benefit cap.
Fiona King, the charity’s senior policy public affairs manager, said: “Along with many across the sector and the country, we have long campaigned for an end to this cruel policy, and we hope this can be delivered as soon as possible.
“No government is serious about ending child poverty if they keep the two-child limit and we urge the UK Government to scrap this pernicious policy immediately.”
Fiona Steel, the national director for Scotland at Action for Children, said her charity “warmly welcome today’s announcement for Scottish Government funding by 2026 to mitigate the cruel two-child limit”.
“It’s an unnecessary driver for rising child poverty, and something we’ve continually called on the UK Government to scrap,” she added.
Poverty Alliance chief executive Peter Kelly said he hoped it added “to the pressure to scrap the two-child limit across the UK”.
Kelly said the “two-child limit is a huge injustice that has no place in a compassionate society – because every child matters and every child should get the support they need”.
However, he added: “We can do more. There are around 240,000 children in poverty in Scotland. We need to go further and faster if we are going to eradicate child poverty."
John Dickie, the director of Child Poverty Action Group in Scotland, said: “The Finance Secretary is absolutely right to mitigate the two-child limit in the absence of abolition at UK level.
“It’s a pernicious policy that pushes 15,000 children into poverty in Scotland alone. Investing in social security for families is key to delivering on the First Minister’s number one priority of eradicating child poverty.
“The devil will be in the detail and families really can't wait until 2026 to see their incomes boosted, so an above inflation increase to the Scottish child payment is still needed in the meantime.
“But there is no question this is the right focus for prioritising spend. We need the UK Government to take the same approach to investing in family benefits as a matter of utmost urgency.”
Robison said this additional funding was “welcome”, but went on: “Let's be clear, after inflation, it represents growth in resource spending – that's day-to-day spending to pay for services – of only around one per cent year on year. Substantial financial pressures therefore persist.”
Robison also said that Labour had increased the pressures with an increase to employers’ National Insurance contributions.
She said this would cost the Scottish public sector around £700 million, while the UK Government has said it will cover around £300m in those costs.
The Finance Secretary said that Chancellor Rachel Reeves “should pay the full price for her own decisions”.
