April 2025
We are supportive of the Scottish Government commitment to mitigating the effects of the two-child benefit cap for claimants of Universal Credit and see this as a positive step towards protecting the rights of children and young people in Scotland.
In Scotland, levels of child poverty remain unacceptably high. It is estimated that around 240,000 children (23%) were living in relative poverty after housing costs in 2021-2024.[1] Latest data released has shown that these levels have remained somewhat stable, with a reduction in poverty levels for some groups of children. This is largely credited to the progress made with the Scottish Child payment.[2] This conclusion is supported by the fact that there is a clear difference between poverty levels in Scotland compared to the rest of the UK.[3]
Even with this, child poverty persists at stubbornly high levels and it shows how much more needs to be done to mitigate this. While poverty levels for some groups of children improved slightly, it is noticeable that they are increasing in households where there are 3 or more children.[4]
Many children would benefit from the mitigation of the two-child cap – the Child Poverty Action Group estimates that scrapping the two-child cap in Scotland could lift 15,000 children out of poverty, while the Scottish Fiscal Commission estimates that 42,000 children in Scotland will benefit. This policy has the potential to protect and promote the rights of children in Scotland by keeping thousands of children and young people out of poverty and reducing those already experiencing it[5].
To fully realise the intention of this policy, there will require to be commitment from the Scottish Government to continue resourcing other services supporting children and young people experiencing poverty.
The Scottish Government have outlined in their consultation paper the relevant rights under the UNCRC – we welcome the completion of the full Childs Rights and Wellbeing Assessment.
We would add to this the importance of Article 12 which encompasses the rights of children and young people to be heard and taken seriously. Those experiencing the benefits system are best placed to give direct feedback how the policy implementation is working and should be consulting as the policy is rolled out. Where third sector organisations are relied upon to support direct engagement work with children and young people they should be properly funded to do so.
Recent modelling from the Fraser of Alllander Institute shows that mitigating the two-child cap will not in itself be enough to meet Scotland’s child poverty targets (this will reduce the gap by 10 percentage points). There are other measures that the Scottish Government must also prioritise on their journey to ending child poverty.
[1] Poverty and Income Inequality in Scotland 2021-24
[2] New child poverty data and updates on methodological changes – Scottish Health Equity Research Unit
[3] UK Poverty 2025: The essential guide to understanding poverty in the UK | Joseph Rowntree Foundation
[4] New child poverty data and updates on methodological changes – Scottish Health Equity Research Unit