The Scottish government has announced plans to axe the two-child benefit cap, which limits financial support to just two kids. This means that parents can claim child elements of Universal Credit or tax credits worth up to £3,455 per year for third or subsequent children born after April 2017. Finance Secretary Shona Robinson stated that the cap will be fully scrapped by 2026, with the initiative only available to residents in Scotland. While the cost of lifting the cap for the UK is estimated to be around £3.4 billion, the cost for Scotland could exceed £250 million based on population share.
Alison Garnham, chief executive of the Child Poverty Action Group, supported the Scottish government’s decision but highlighted the need for Westminster to take similar action. She emphasized that there is no justification for continuing to roll out poverty to more children through this policy from the austerity era. The UK government has additional support measures in place for parents, including free childcare for children aged nine months to four years old in England. From September 2025, working parents can claim up to 30 hours per week of free childcare for children aged nine months to two years old, subject to specific income requirements.
Furthermore, it was revealed that from 2022, every pensioner in Scotland will have access to the Winter Fuel Payment of £300, compared to the means-tested approach adopted by the UK government. While only pensioners claiming benefits such as Pension Credit will receive the payment in the UK, all pensioners in Scotland will receive between £100 and £300 cash. Those in receipt of qualifying benefits in Scotland will receive £200 or £300 depending on their age, while all other pensioners will receive £100. The shift towards more universal support for pensioners in Scotland contrasts with the means-testing approach applied in the rest of the UK.
The change in policy in Scotland follows a decision by the UK Chancellor Rachel Reeves to means-test the Winter Fuel Payment, reducing eligibility to those claiming specific benefits. The measures announced by the Scottish government aim to provide more inclusive support for families and pensioners, addressing the financial challenges faced by vulnerable groups. Residents in Scotland will benefit from increased financial assistance, with measures such as axing the two-child benefit cap and ensuring universal access to the Winter Fuel Payment. It remains to be seen how these changes will impact families and pensioners in Scotland and how Westminster will respond to the calls to scrap similar policies in the rest of the UK.
The commitment by the Scottish government to provide additional support to families and pensioners highlights the importance of addressing poverty and financial hardship. By mitigating policies such as the two-child benefit cap and ensuring universal access to the Winter Fuel Payment, the government aims to improve living standards for vulnerable groups in Scotland. The cost implications of lifting such caps can be significant, as evidenced by the estimated cost of £3.4 billion for the UK. However, the importance of prioritizing the well-being of families and pensioners cannot be understated, and it is crucial that similar measures are considered at the national level to support those in need. The announcements made by the Scottish government signal a shift towards more inclusive and supportive policies, setting an example for addressing poverty and financial insecurity in society.
