Update on plans for the Two Child Limit Payment in Scotland

Social Justice Secretary Shirley-Anne Somerville has confirmed to Parliament that the funding the Scottish Government had allocated for the Two Child Limit Payment will be reinvested in other measures to drive progress on ending child poverty.

The UK Government announced in last week's Budget that it will end the policy from April next year, meaning that plans to introduce a new benefit to mitigate the policy in Scotland will not be required to progress.

Social Justice Secretary Shirley-Anne Somerville said:  

“The UK Government's decision to scrap the punitive two-child limit comes after sustained, concerted pressure from the Scottish Government and charities across the UK. While their decision was a delayed one, it is one that I welcome. 

“I am, however, frustrated that the benefit cap will still be enforced, which is a conscious choice to continue to shackle families and their children to hardship. 

“As the First Minister has made clear, we will reinvest the funding we had allocated to the Two Child Limit Payment to other measures that advance our work to eradicate child poverty.  

“We will take the time to consider how best to use that funding to have the greatest impact, and we will set that out in the Scottish Budget on 13^th January.”

Background 

A Government Initiated Question was answered by the Social Justice Secretary today (Wednesday 3 December). 

The benefit cap, which was introduced by the UK Government in 2013, limits the total amount of benefits someone over 16 years old but below state pension age can receive. The benefit cap is frozen at April 2023 levels. 

Policy in Practice estimates that without the removal or mitigation of the benefit cap, one in ten children impacted by the two-child limit won't benefit from its removal, and a further one in ten will only benefit partially. 

Since 2017, Scottish Ministers have invested over £716 million in Discretionary Housing Payments to deliver a Scottish Government commitment to, at first, fully mitigate the UK Government's bedroom tax and, since 2023, the benefit cap as far as possible within devolved powers.