Catholic Union: It's time to end the 'family tax'

1,300,000 children live in poverty in the UK

The Catholic Union of Great Britain has called on the Government to scrap the two-child limit for childcare support for those on low incomes and the unemployed.

The policy, introduced in 2017, limits the childcare element of Universal Credit and Tax Credits to two children per household. The policy was widely criticised by faith groups at the time, on the grounds that it discriminates against larger families.

The Catholic Union has written to the Chancellor to call for the policy to be scrapped in light of the coronavirus outbreak and the huge financial pressures faced by families across the country.

A review of tax and spending plans is expected to be announced next month to address the economic shock of the coronavirus. The Catholic Union has urged the Chancellor to consider all options for supporting children and families at this difficult time, including removal of the two-child limit.

Catholics attempted to get the policy changed ahead of the Budget earlier this year but were unsuccessful. The Catholic Union is urging the Chancellor to reconsider the Treasury's position in light of the coronavirus and the risk of a significant increase in child poverty caused by the economic downturn.

Catholic Union Head of Public Affairs, James Somerville-Meikle, said: "There has never been a better time to get rid of this deeply unfair policy, or a more pressing need to give families the support they need. Coronavirus is having a devastating impact on families across the country. Existing support from the Government is welcome, but it's crucial that help gets to people most in need. The decision not to give support to some of the most vulnerable families in society looks increasingly indefensible. At a time when public spending is increasing, levelling up support for families should be a priority for the Government. Campaigners, including many faith groups, have worked hard over the last three years to highlight the unfairness of this policy. But with more families relying on universal credit and income support, it's now vital that the two-child limit is removed. It's time to end this family tax and give children and families the support they deserve."

A copy of the letter follows:

Rt Hon Rishi Sunak MP Chancellor of the Exchequer HM Treasury
1 Horse Guards Road London, SW1A 2HQ

Sent by email only to: public.enquiries@hmtreasury.gov.uk
St Maximilian Kolbe House 63 Jeddo Road London W12 9EE

17 June 2020

Dear Chancellor,

I'm writing to you in light of the devastating impact that coronavirus is having on families across the UK.

As you may know, the Catholic Union is a membership organisation, which represents the views and interests of the Catholic laity in Britain.

Catholic charities, parishes and volunteers are seeing first-hand how the loss of loved ones is compounded by huge economic uncertainty, leaving many families unable to meet basic living costs.

The measures taken so far to protect jobs and support household incomes are extremely welcome. However, it's clear that many families are struggling, and we are at risk of a significant increase in child poverty, with long-term consequences for both those directly affected and the Common Good of our wider society.

As you consider changes to tax and spending policy, in addressing the economic shock of this pandemic, we urge you to consider all options for supporting children and families, including removal of the two-child limit for Universal Credit and Child Tax Credit.

I wrote to you ahead of the Budget earlier this year, along with Bishop Richard Moth, setting out the reasons why this change is so important. In the months since then, the need to reverse this unjust restriction on help available to families has become even greater.

The pandemic has clearly reinforced the way in which completely unforeseen circumstances can have sudden and catastrophic consequences for any family's income. In these situations, support is needed for each and every child.

There has never been a more crucial moment to change this policy, or a more pressing need to give families the assistance they deserve. Abolishing the two-child cap will be both a tangible means of reducing child poverty in the UK and a clear sign of support for family life.

I look forward to hearing from you. Yours sincerely,

Nigel Parker

Director

The Catholic Union of Great Britain Email: director@catholicunion.org.uk

cc. Rt Hon, Therese Coffey MP, Secretary of State for Work and Pensions

The Catholic Union of Great Britain was founded in 1870 and is the voice of lay Catholics in public life. The CU seeks to present the views and interests of the 4.5 million Catholics in this country.

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Twitter: @CatholicUnionGB