Rudd confirms scrapping of unpopular two-child limit on universal credit

Amber Rudd has announced a set of reforms to the universal credit scheme, including the scrapping of the controversial two-child limit.

Speaking at Kennington Jobcentre on Friday, the work and pensions secretary explained changes to the system in the next phase of universal credit, known as managed migration. These changes include doing more to support women.

In particular, the plan to retrospectively apply a two-child cap to universal credit claimants who have had children since 2017 will not go ahead, helping about 15,000 families across the country. The announcement follows the High Court’s decision to rule against the government and in favour of four working single mothers, who said they were struggling financially because of the way the new benefit system works.

VIDEO: What is Universal Credit?

Following consultations with Refuge, Women’s Aid and other women’s charities, Rudd said she plans to implement changes so that a couple’s universal credit payment goes directly to their child’s primary caregiver, which is usually the woman.

She explained: “Women can never truly be free until they have economic independence. Under the old system, millions of women could be written off as ‘dependants’ and left without any encouragement or support from the system. Under universal credit that won’t happen.”

Rudd said the next phase of the roll-out will be more flexible, allowing for more regular payments or for rent money to be paid directly to a claimant’s landlord, depending on the needs of the individual.

VIDEO: Universal credit agents encouraged to get applicants off the phone

Earlier she had said she will delay asking parliament for permission to move three million benefits claimants onto universal credit until after the pilot trial of the transfer, and that she will not be rushed into “mass migration”.

Recently, Rudd suggested the long-standing benefit freeze introduced by former chancellor George Osbourne in 2016 will not be renewed next year. This could end the unpopular policy that has affected benefits including tax credits, child benefit, jobseeker’s allowance, and part of employment and support allowance since 2015.