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Social security background briefing

Why does our social security system need to be renewed?

Benefit levels have fallen as a proportion of the average wage for the past 35 years and now stand at record lows. This means that around 5 in 6 households on the main benefit supporting low-income families, Universal Credit, are currently going without essentials such as food, power, clothing, toiletries etc.
The link between basic needs and help offered has been broken. The two-child rule, introduced in 2017, deliberately broke that link for families with three or more children, driving many families into poverty.

What is the two-child limit?

The two-child limit means children born after April 2017 are normally denied support from Universal Credit or Child Tax Credit, if their family already has two or more children.

When was it introduced and why is it controversial?

The limit was introduced in 2017. No such restrictions on siblings had previously existed within the UK social security system, and very early on it was opposed by church leaders and anti-poverty charities, who argued it was simply wrong for the Government to provide differing levels of support to children. Dozens of bishops and other faith leaders wrote to the Government on the policy’s first anniversary, calling for it to be scrapped. Save The Children refer to the policy as a sibling tax.

How many children are affected?

The Government’s own figures show that 1.6 million children in 450,000 households live in families affected. The number of third (or higher) siblings denied support as a result of the policy has increased every year. Affected families miss out on £3,514 a year.

What difference would ending the policy make?

Ending the two-child limit would immediately lift 400,000 children out of poverty and improve the circumstances of a further 950,000 children affected by poverty.

Why are we campaigning now?

Churches and other faith groups have always been among the most vocal critics of the policy. The effort is being stepped up now because the new Government is developing a Child Poverty Strategy, and there are hopes that Ministers might be receptive to growing calls to abandon the policy. Some Labour MPs and party figures have publicly called for its removal, and there is hope that either the Child Poverty Strategy or the autumn budget will see the policy being overturned and support being offered to every child.