Scrapping the two-child cap on benefits is a “no-brainer” say Oldham Liberal Democrats ahead of council vote

The Liberal Democrats will present a motion to Oldham Council next week calling for the two-child cap on universal credit to be scrapped by the new government.  The cap, which prevents families from claiming Child Tax Credit or Universal Credit for more than two children in a household, was introduced by the Conservatives in 2017.

Liberal Democrat Group Leader councillor Howard Sykes MBE said, “In Oldham, more than 11,000 children are living in poverty.  The single most effective step the government could take to tackle child poverty is to scrap the two-child cap.  It is a cruel policy and one that is pushing more and more families into hardship during the ongoing cost-of-living crisis.”

“Some people will argue that we can’t afford to do things like this.  But the Liberal Democrats say we cannot afford not to.  It is estimated that child poverty costs the UK economy £39 billion each year, whereas scrapping the two-child cap will cost £1.3 billion.  This is a no-brainer.” 

The Liberal Democrats campaigned against the cap in the last three General Elections and have criticised the Labour Party for u-turning on plans to scrap the cap as it became clear they would likely win power earlier this year. 

Saddleworth West and Lees representative and Liberal Democrat Deputy Leader councillor Sam Al-Hamdani said, “It was Labour Party policy to scrap the cap until late last year.  In government, so far there has been little difference between Labour and the Conservatives.”

“As Oldham councillors it is our job to stand up to the government in the interest of all of Oldham.  The fact is this cap on universal credit is harming the families we all represent.  That’s why every councillor, regardless of political party, should vote for our motion and send a message to Keir Starmer’s government that it is time to think again.”  

Oldham Council will vote on the Liberal Democrat motion at the Full Council meeting on Wednesday September 11^th.

Liberal Democrat Motion in full:

Full council 11 Sept 2024 – Notice of Opposition Motion

Scrap the two-child benefit cap

Proposed by: Councillor Howard Sykes
Seconded by: Councillor Sam Al-Hamdani

The Two Child limit to benefit payments was introduced by the Conservative Government in 2017 and is supported by the current Labour Government.  It prevents families from claiming Child Tax Credit or Universal Credit for more than two children in the household.

Council notes the recent research conducted by the End Child Poverty Coalition which has found that:

• 1.5 million children in the UK live in households subject to the two-child limit on benefit payments. That is roughly one-in-ten children in the UK.
• In 2023/24 the two-child limit cost families up to £3,235 per child each year.
• There is a strong correlation between families affected by the two-child limit and those who are living in poverty.
• Scrapping the two-child limit would lift 250,000 children out of poverty overnight, and significantly reduce the level of poverty that a further 850,000 children live in.
• Scrapping the two-child limit would cost £1.3 billion, however it is estimated that child poverty costs the economy £39 billion each year.
  

In Oldham 11,340 children in 3,160 households are currently affected by the two-child limit to benefit payments.  That is 18% of all children in the authority area.  At the same time 27,760 local children are living in poverty.

Council strongly believes that the two-child limit to benefit payments is a cruel and harmful policy that should be scrapped.  Research from the University of York has shown its introduction has had no positive impacts on employment and earnings. Instead, it has dragged thousands of local families into poverty.

Council notes the Liberal Democrats have consistently opposed the two-child limit to benefit payments since it was introduced – calling for it to be axed in their 2017, 2019 and 2024 manifestos.  Council notes with concern the stance of the Labour Government who are committed to keeping the cap – going as far as suspending the whip from MPs who rebel against this position.

Council resolves to:

1. Instruct the Chief Executive to write to the Chancellor of the Exchequer and the Prime Minister outlining Oldham Council’s strong belief that the two-child limit to benefit payments should be scrapped – which would help more than 11,000 children across Oldham.
2. Further instruct the Chief Executive to write to all of Oldham’s MPs, asking them to commit their public support to the campaign to end the cruel two child limit to benefit payments.
3. Ensure the number of children a family has is considered when a hardship grant is given out by the council.
4. Explore ways to support families impacted by the two-child limit across Oldham Borough, including through free school meals.