THE Labour Government’s two-child benefit cap is limiting the number of children couples choose to have – despite Scotland’s demographic challenges suggesting the need for more births, a new report has found.
The document, published on Sunday by the housing association the Wheatley Group and drawn up by Unity Consulting Scotland, found that parents felt the UK Government was trying to “influence their personal and private decision to have children”.
The report, titled Every penny counts: the struggle to survive on the two-child limit, concluded that the cap “disproportionately and negatively” impacts on larger families, many of whom are migrants, and that people were being left with the “choice between heating and eating”.
“[The two-child cap] is a punitive system that entrenches poverty even when evidence shows it affects the quality of life, educational attainment and future prospects of our youngest and most vulnerable citizens,” the report said.
For the research, Unity Consulting reached out to more than 1000 families in Wheatley Group housing who were likely to be impacted by the cap. They said that 160 families engaged with it, and 110 fully completed a survey.
One parent, called only A, said that the benefit cap had been a focus of discussion after she learned she was pregnant for the third time.
“Our finances were a big question on whether to continue with pregnancy or not, if I'm honest,” she told researchers.
The report concluded: “A consequence (and arguably an intention) of the two-child limit policy is to limit the number of children families have. Yet, here in Scotland due to demographic challenges, there is a strong argument that we need to actually encourage families to have more children.”
In July, official figures from the National Records of Scotland (NRS) showed that Scotland's birth rate was at the lowest total since records began in 1855.
Labour have insisted that they will not scrap the two-child cap, which came into effect in 2017 and prevents people claiming benefits for their third or subsequent children unless specific exemption requirements are met (such as proving that the child is a product of rape).
Keir Starmer’s party have instead said that growing the economy is their number one priority.
Steven Henderson, the chief executive of the Wheatley Group, said: “The two-child cap, introduced in 2017, has had a profound impact on families across the UK. By limiting the amount of child tax credit or universal credit that parents can claim, it has pushed many families deeper into poverty. Data shows that removing the cap could lift 500,000 children out of poverty, highlighting the urgent need for change.
“At Wheatley, we see firsthand the struggles our tenants face due to this cap, and we are calling for a more compassionate and supportive welfare system."
And Dr Tommy Kane, a director at Unity Consulting, said: “This research represents a damning assessment of the two-child limit.
“What we heard from the people we spoke to showed clearly how child poverty is being entrenched and exacerbated by this policy and as a result the life chances of hundreds of thousands of children are being hindered and held back.
“This policy was rightly described as ‘morally odious’ and it should be scrapped. It makes no sense socially or economically. It is designed to punish families and sadly that is exactly what is happening.
“If Labour does not scrap it, their government will preside over an increase in child poverty, which will have a catastrophic impact on the families and children affected. The Labour Government must listen to the moral and economic arguments and end the two-child limit when they unveil their first budget on October 30.”
In August, Scottish Labour MP and UK Energy Minister Michael Shanks admitted that scrapping the cap “would lift a lot of children out of poverty,” but continued to defend not doing so.
Labour have said there is a “black hole” in the public finances which means they will also look to cut back on other benefits. The Winter Fuel Payment was cut soon after the General Election, and reports say the upcoming Budget could also see sickness benefits cut by up to £3 billion.
A UK Government spokesperson said: “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.”
