Overview

This bill aims to abolish the two-child limit for Universal Credit, a benefit for low-income families. Currently, families receiving Universal Credit only receive support for their first two children. This bill seeks to remove that restriction, meaning all children in a family will be considered when calculating the benefit amount.

Description

The bill amends the Welfare Reform Act 2012 and related regulations to remove the two-child limit on Universal Credit. Specifically:

• It removes subsection (1A) of section 10 of the Welfare Reform Act 2012, which imposed the two-child limit.
• It modifies other relevant sections of the Act and the Universal Credit Regulations 2013 to ensure consistent application of the changes.
• It repeals section 14 of the Welfare Reform and Work Act 2016, which previously introduced the two-child limit.
• It allows for transitional regulations to manage the implementation of the changes.

The bill specifies that the amendment does not impact the ability to adjust the monetary amounts for child elements via future regulations.

Government Spending

Removing the two-child limit will likely lead to increased government spending on Universal Credit. The exact figure is difficult to predict without detailed analysis of the number of families affected and their circumstances, but it is expected to be substantial.

Groups Affected

• Low-income families with more than two children: These families will directly benefit from the removal of the limit, receiving increased Universal Credit payments.
• The UK Government: Will experience a significant increase in expenditure on Universal Credit.
• Taxpayers: May see an indirect impact through increased taxes to fund the higher Universal Credit payments.

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