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Wheatley calls for ‘urgent change’ over two-child benefit cap
Scotland’s largest housing association has added its voice to opposition over the controversial two-child benefit cap, warning that it has pushed families “deeper into poverty”.
Steven Henderson, chief executive of 96,000-home Wheatley Group, said the rule has had a “profound impact on families across the UK”.
Mr Henderson, who has taken a 60% pay cut, has spoken out after the group commissioned a report recommending that the cap is scrapped.
He added: “By limiting the amount of Child Tax Credit or Universal Credit that parents can claim, it has pushed many families deeper into poverty.
“At Wheatley, we see first-hand the struggles our tenants face due to this cap, and we are calling for a more compassionate and supportive welfare system.”
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The two-child cap, which was introduced in 2017 under the Conservative government, prevents parents from claiming Universal Credit or Child Tax Credit for a third child, with a few exemptions. Around 1.6 million children are affected by the policy, according to official figures.
Labour has kept the cap in place so far, but has faced strong opposition from some of its own MPs, with one calling the policy “heinous”.
Scottish Labour has also called for the policy to be dropped along with a string of charities.
Dr Tommy Kane, director at PR firm Unity Consulting, which wrote the Wheatley-commissioned report, said: “The Labour government must scrap this ‘morally odious’ policy. It makes no sense socially or economically. It is designed to punish families and sadly that is exactly what is happening.”
The 41-page report, which includes testimony from Wheatley tenants, said that the case for abolition of the policy has “never been stronger”.
It said abolishing the cap would be “massively beneficial” for families by making sure their basic needs could be paid for and their quality of life “enhanced”.
The policy is limiting the number of children that families have at a time when there is a “strong argument” to encourage families to have more children due to “demographic challenges” in Scotland, the report said.
It comes a week before chancellor Rachel Reeves is due to unveil her maiden Budget in Westminster.
Satwat Rehman, chief executive of charity One Parent Families Scotland, said: “Immediate action in the UK Budget to abolish the two-child limit is essential to prevent further harm and ensure that all families have the support they need.”
A government spokesperson: “No child should be in poverty – that’s why our Ministerial Taskforce is looking at all available levers and working closely with devolved governments as it develops an ambitious strategy to tackle child poverty.
“Alongside this urgent work, we are taking bold action to grow the economy and make work pay to spread opportunity and prosperity to all.”
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