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The Two Child Limit Payment (Scotland) Regulations 2026: scrutiny report

The Scottish Commission on Social Security's scrutiny report on the draft Two Child Limit Payment (Scotland) Regulations 2026

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Contents

1. Introduction

1.1 About the Scottish Commission on Social Security

The Scottish Commission on Social Security plays an essential role in the development and delivery of a Scottish Social Security system based on fairness, dignity and respect by providing independent scrutiny of the Scottish social security system. Our full functions are set out in the Social Security (Scotland) Act 2018.¹

We are separate from the Scottish Government, and carry out our work independently of both Scottish Ministers and the Scottish Parliament.

For more information about the Scottish Commission on Social Security visit: https://socialsecuritycommission.scot/

1.2 Overview

We are pleased to present our report on the draft Two Child Limit Payment (Scotland) Regulations 2026 (referred to in this report as the ‘draft regulations’).

The draft regulations outline the rules for a new Two Child Limit Payment. This payment will top up the income of individuals who are in receipt of Universal Credit and who are not receiving the child element of Universal Credit for one or more children due to the two-child limit rules. The Scottish Government are using their powers under Section 79 of the 2018 Act allowing them to top up reserved benefits in certain circumstances. The Scottish Government note that the introduction of Two Child Limit Payment is to “mitigate the UK Government’s two-child limit policy for Universal Credit”. Payments are expected to begin in March 2026, and are projected to ensure that 20,000 fewer children live in relative poverty in 2026-27.²

Our scrutiny considered both the social security principles (Annex A) and relevant human rights provisions. Among these, we saw that two social security principles were particularly relevant:

Principle (b) which recognises social security as a human right and as a means of enabling other rights; and
Principle (e): which recognises social security’s role in reducing poverty. The UN Convention on the Rights of the Child was also relevant. In particular it requires that:
children’s best interests are prioritised (Article 3);
governments ensure children’s rights to social security (Article 26) and to an adequate standard of living (Article 27); and
children have the right to express their views and participate in decisions that directly affect them (Article 12).

Throughout the scrutiny process, we worked closely with officials and are grateful for their detailed and prompt responses to our questions, and the draft impact assessments, which helped us better understand the policy behind the draft regulations and their anticipated impact. We engaged with stakeholders on the detail of the draft regulations. They welcomed the move to address the two-child limit and recognised the balance to be struck between introducing a mitigation payment quickly and ensuring that everyone who is eligible receives it. Their comments are incorporated into this report.

In this report we examine the Scottish Government’s legislative approach and its limitations, explore how mitigation of the two-child limit interacts with the exceptions³ available to some claimants, and we raise issues related to backdating. We also address several technical issues in the draft regulations.