Contribution
You’re in trouble now, Madam Deputy Speaker!
The Bill will be remembered as one of the proudest moments of this Government’s first term. Before entering this place, I worked on policy around poverty, and it is something that motivates me every day. A constant theme that I have found, when looking at the evidence, is that the simple solutions are often the best. Indeed, it is interesting that Opposition Members often argue for a simplified tax system for the wealthy, but when it comes to benefits, they have done nothing but buttress the system with more and more complex rules.
Poverty ruins lives. We know that growing up in poverty leads to worse life outcomes, including poorer educational outcomes. Being in poverty as children leaves us three times more likely to be in poverty as adults, and the longer the period of deprivation a child goes through, the worse their chances will be as an adult. It is clear that the impacts of child poverty are deep-rooted. Lifting the two-child benefit cap is one of the single most effective ways to change that trajectory and give people a better outcome for the rest of their lives. If someone is constantly hungry, cold or in damp housing without repairs, the effects on their health, self-esteem and chances are long-lasting.
When kids grow up in poverty, the economy loses out too. Even if Members choose not to care about worse outcomes for children—something I think we have a moral imperative to care about—it is a question of cold economic logic. In 2023, my old employer, the Child Poverty Action Group, estimated that the cost of child poverty was £39 billion a year, and that investing to solve the issue
“would bring similarly large gains to the economy”.
The lifting of this cap alone will ultimately save £3.2 billion a year.
This is the first piece of legislation passed on child poverty since the Child Poverty Act 2010. I remember working on the passage of that Act, and how the now Lord Cameron committing to halving and then ending child poverty. Indeed, he accepted the evidence-based view that relative poverty is appropriate for measuring child poverty, because children with less money are less able to take part in the society to which their friends belong, and are less able to achieve in the same way. It was a bold way to face the electorate in 2010, but it was not matched at all by the Conservatives’ record in power of abject failure. The two-child limit pushed hundreds of thousands more children into poverty. This Bill is shot through with the needs created by the last Government’s 14 years of failure. UNICEF found that between 2013 and 2023, the UK saw the largest increase in relative poverty out of the 37 high-income countries that it measured—an increase of a third. That is a larger increase than across the EU.
We have heard a lot from Members across the House about people in work. When I was working at the Child Poverty Action Group, we had a killer stat. We used to say, “One third of children in poverty have a parent in work.” By the time that lot left government, two thirds of children in poverty had a parent in work. Even if a child does not have a parent in work, I do not believe that the sins of the parents are visited on the children. I do not believe that children have control over where they are born. We hear about choices; should children choose to be born to a different family? The two-child benefit cap is social and economic vandalism that we will reverse when this Bill becomes law. The removal of that cap will lift 450,000 children out of poverty, with 2 million children set to benefit overall. Think about what that means—the lives changed and the futures opened up. If nothing else moves Members, think about the savings to the public purse from fewer children growing up facing the barriers that poverty causes, which follow them into adulthood.
There is more to do. My hon. Friends on the Front Bench will know that I am likely to be very annoying about the further things we have to do, but I welcome the Government’s support for free breakfast clubs, expanding childcare, family hubs and getting more young people into work. I look forward to reviewing how those programmes bring children out of deprivation. Today, I could not be prouder that I will walk through the Division Lobby to give millions of children a fairer start.