Two-child cap is ‘cancelling Christmas for vulnerable children’, says SNP

The two-child benefit cap is effectively “cancelling Christmas for Scotland’s most vulnerable children”, the SNP has said.

The party highlighted the impact of the cap in the run-up to Christmas, accusing the UK Government of a “dereliction of duty”.

SNP ministers in Edinburgh have pledged to mitigate the policy through the devolved welfare system, saying payments could begin in 2026.

Under the DWP’s two-child cap for Universal Credit claimants, households do not receive additional payments for third or subsequent children born after April 5 2017.

The SNP pointed to analysis from the Institute for Fiscal Studies from earlier this year, which said that when the two-child cap is fully rolled out, average affected households will lose £4,300 a year – representing 10% of their average income.

SNP MSP Collette Stevenson said: “The two-child cap is an abhorrent policy and that’s exactly why this SNP Government will scrap it.

“As outlined in this year’s budget, we will deliver for the most vulnerable Scottish families where the Tories and Labour have repeatedly failed them, removing this cap on benefits and directly lifting 15,000 children out of poverty.

“As Christmas approaches and costs are on the rise for families, this decision is all the more meaningful and needed, and it is a dereliction of duty that Westminster has failed to do so before now.

“Nevertheless, this SNP Government has stepped in and will work as quickly as possible to ensure vital support gets to those who need it most.”

The SNP is also calling on UK ministers to reintroduce cost-of-living payments to help households with energy bills.

SNP MP Dave Doogan said: “Sir Keir Starmer promised voters he would reduce energy bills by £300, but instead bills have gone up, with a typical household now paying £149 more a year.

“Instead of tackling the soaring cost of energy, the Labour government has made it even worse by increasing household energy bills by 10% while taking £600 in winter fuel payments from pensioners.”

The Labour Government has said it will work with the Scottish Government on the mitigation policy in Scotland, but it does not believe money has been set aside by the Scottish Government.

Earlier this month, the Chancellor of the Duchy of Lancaster, Pat McFadden, said the UK Government’s child poverty taskforce would report next year.

McFadden said: “We don’t believe it’s just about benefits, we think there are other things that contribute to child poverty.”

The UK Government said the state of the public finances means the two-child cap cannot be removed, noting “significant social security powers” have been devolved to Holyrood since 2016.

A spokeswoman added: “We will engage constructively with the Scottish Government where necessary.

“No child should be in poverty – that’s why our ministerial taskforce is exploring all levers available across government to give children across the United Kingdom the best start in life.

“As we fix the foundations of the economy, we’re increasing the living wage, uprating benefits and supporting 700,000 of the poorest families with children by introducing a fair repayment rate on universal credit deductions to help low-income families and make everyone better off.”