EXPERT HUB – REPORT: IS IT FAIR TO REMOVE THE TWO-CHILD LIMIT ON BENEFITS?

by: Inclusive Growth Contributor | on: 26.03.24 | in: Uncategorised

By the Fairness Foundation

Do the fairness arguments for the two-child limit outweigh the arguments for abolishing it?

This report weighs up the moral and philosophical cases on both sides, with reference to the empirical evidence, the political debate and what we know about public attitudes.

EXECUTIVE SUMMARY
The two-child policy is unfair in multiple dimensions. It has also failed to achieve its stated objectives, and it has a wide range of negative consequences for society and for the economy.

Background
The two-child limit for Universal Credit and Child Tax Credit was announced by the government in the 2015 summer budget.

Under this policy, enacted in the Welfare Reform and Work Act 2016, families are no longer eligible for means-tested benefits for their third or subsequent children, for all those born after 6 April 2017.

The loss of income for those families affected by the policy is substantial, amounting to up to £3,235 per child in 2023/4. Approximately 1.5 million UK children live in those 10% of families whose income is affected by the two-child limit.

More details on the Fairness Foundation website.

Read the full report here.