Universal credit: Two-child benefit cap to be relaxed

Universal credit: Two-child benefit cap to be relaxed

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Amber Rudd will make her first main welfare speech on Friday

Round 15,000 households with three or extra youngsters won’t have their common credit score capped, the work and pensions secretary will say on Friday.

A two-child restrict on the profit got here into impact in April 2017 – however didn’t initially apply to claimants whose youngsters have been born earlier than that date.

This exemption was attributable to finish subsequent month, however Amber Rudd will say that it’s going to as an alternative proceed.

The Youngster Poverty Motion Group stated the choice was “fantastically excellent news”.

Nonetheless, the group remains to be calling for the two-child cap to be scrapped for all different households.

The “child element” of universal credit varies, however is value not less than £231.67 a baby per thirty days.

Ms Rudd will say: “Because it stands, from February 2019 the 2 child-limit shall be utilized to households making use of for common credit score who had their youngsters earlier than the cap was even introduced. That isn’t proper.

“These dad and mom made selections in regards to the dimension of the household when the earlier system was the one system in place.

“So I can at present announce that I’m going to scrap the extension of the two-child restrict on common credit score for kids born earlier than April 2017.

“All youngsters born earlier than that date will proceed to be supported by common credit score.”

What’s common credit score?

Common credit score is a profit for working-age individuals, changing six advantages and merging them into one cost:

  • revenue assist
  • income-based jobseeker’s allowance
  • income-related employment and assist allowance
  • housing profit
  • little one tax credit score
  • working tax credit score

It was designed to make claiming advantages easier, and is being launched in levels throughout the UK.

She will even defend the introduction of the profit itself, saying: “Common credit score is working for the overwhelming majority of individuals…

“As a nation, I consider all of us need a first rate security internet: when you’re going through a troublesome second in life, the state ought to be there that can assist you.

“However it’s critical that individuals are supported by this security internet, not trapped beneath it.”

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Media captionCombating common credit score in Hartlepool

Moreover, Ms Rudd will announce a slowdown within the “managed migration” to common credit score of claimants whose circumstances haven’t modified.

However, she’s going to add, there shall be no “total delay” to the common credit score migration, which “shall be accomplished, as deliberate, by 2023”.

Labour MP Frank Discipline, who chairs the Work and Pensions Committee, stated: “I strongly welcome the secretary of state’s resolution to not press forward with what may have been the cruellest profit reduce in historical past.

“On the eleventh hour, she has prevented 1000’s of youngsters from being plunged into poverty by an unjustifiable retrospective coverage.”

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Media captionWhat’s the issue with common credit score?

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