CPAG challenge to the two child limit succeeds but only in part.

CPAG have issued a statement today which reads as follows:

On 18 August 2017, CPAG issued a claim for judicial review in the High Court against the Secretary of State for Work and Pensions (SSWP) to challenge the two child limit, introduced by the Welfare Reform and Work Act 2016. Permission was granted on 17 October 2017 and the case was heard across two days on 6 and 7 February 2018.

Judgment was given on 20 April 2018 allowing the challenge in part.  The Court accepted CPAG’s arguments that the ordering restriction on the kinship care exception was perverse and therefore unlawful.  The wider challenge to the policy as a whole was dismissed.  CPAG is looking to appeal this aspect of the case. Read the judgment.

The case is brought on behalf of two lone mothers, who each already had more than one child born before 6 April 2017 and gave birth to an ‘additional’ child after that date, as well as a household who would be exempt from the policy but for the fact that the child being looked after under a child arrangement order was taken in as the family’s second child before the couple went on to have a natural child of their own (the family’s third child).

Grounds of challenge are:

(i) Direct breach of Article 8 (right to private and family life) and Article 12 (right to marry and found a family) given that the policy is intended to influence intimate behaviour and bring about smaller families;

(ii) Discrimination of children with multiple siblings in respect of Article 8 and Article 1, Protocol 1 given that a child with no siblings or only one sibling has their subsistence needs met through the social security system, while a child with 2 or more siblings does not; and

(iii) The ordering or sequencing requirement to qualify for an exception is unlawful for the same reasons given in (ii) above, as well as being irrational.

In the two claimant households headed up by lone parents, one is on income support, the other on WTC. Neither of the lone mothers intended to get pregnant with the ‘additional child’, indeed one of them was on the pill at the time, but equally for moral reasons neither of them was prepared to consider terminating the pregnancy.  In the third claimant household, the father works full-time while the mother is currently on maternity leave from her part-time job.

Background

On 6 April 2017, new rules came into force limiting the child element of child tax credit (CTC) and universal credit (UC) awards to two children. In CTC, this limit only applies to a third or subsequent child born on or after 6 April 2017; in UC the limit applies from 6 April 2017 (irrespective of when the child was born) though transitional protection currently applies to third or subsequent children born before 6 April 2017. There are a limited number of exceptions to this 2 child limit meaning that it does not apply to a third or subsequent child in the following circumstances: multiple births, adoption from local authority care, kinship care and children likely to have been conceived as a result of rape or a coercive or controlling relationship.

CPAG considers that the 2 child limit unlawfully discriminates against a number of different groups including, but not limited to, children with multiple siblings, large families and those with a religious or moral objection to the use of birth control. Further, the principal policy justification for the limit is logically flawed. In its impact assessment, DWP referred to the 2 child limit as ‘ensur[ing] that the benefits system is fair to those who pay for it, as well as those who benefit from it, ensuring those on benefits face the same financial choices around the number of children they can afford as those supporting themselves through work.’ However, 70% of those claiming tax credits are already working severely undermining such a fairness objective.

It is estimated that more than 250 000 children will be pushed into poverty as a result of this measure by the end of the decade, representing a 10% increase in child poverty. A similar number of children already living in poverty will fall deeper into poverty. Given such a severe impact on child poverty, the policy is in breach of the UK’s obligation under the UN Convention on the Rights of the Child to give primary consideration to the best interests of the child. In these circumstances, the discriminatory treatment cannot be justified.

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CPAG legal challenge – do you have a client affected by the two child limit to tax credits/ universal credit?

Do you have any clients who will be affected by the recent legislative changes to Child Tax Credit and Universal Credit due to come into effect 6 April 2017?

The Welfare Reform and Work Act 2016 introduced fundamental changes to Child Tax Credit and Universal Credit, limiting child tax credit and universal credit to the first two children in a household. These changes, commonly known as the 2 child rule, will come into force from the 6th of April 2017 together with certain exceptions and transitional arrangements set out in recently published regulations.

The Child Poverty Action Group is looking into the possible routes of legal challenge to the 2 child rule and would like your help in locating potential claimants who would be affected by this rule and who would be willing to be part of a CPAG legal challenge.

CPAG is looking in general for:

  • Any family already claiming benefits with two children and looking to have more in the near future

But also the following particular types of households which may be unfairly affected by the rule (though this is not an exhaustive list of examples):

  • Two lone parent household units already with two children each considering forming a single ‘blended family’ arrangement because the adults have become a couple;
  • An individual or couple caring for one or two ‘kinship’ children but contemplating having children of their own;
  • A family which, when the children were born, did not require state support but now has a need to because of an unexpected change in circumstances (e.g. loss of a job); and
  • A parent who is religiously or philosophically opposed to birth control.

If you can help, please complete the attached test case referral form (save it to your computer first) and email it to testcases@cpag.org.uk

CPAG-Test-case-referral-form