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

Entitlement to the payment starts when Social Security Scotland receives the application. It cannot usually be backdated. This reflects the policy used by the Scottish Government for Best Start Grants, Best Start Foods and the Scottish Child Payment.

The Scottish Government¹ Scottish Government response to SCoSS written question, received 4 August 2025 has noted that backdating “before the date of application would be a significant departure from the way existing systems were developed… would add complexity, increase error risk, and would require additional Social Security Scotland resource. All of these factors would result in a significant delay in getting money to families impacted by the two-child limit.” They also note that “Current data-sharing agreements only allow Social Security Scotland to obtain and verify UC entitlement from the date of application. Eligibility cannot be assessed for periods prior to the application date, but all successful awards will be backdated to the date of application.”

We understand the trade-off between added complexity and the need to make payments as quickly as possible, and we acknowledge that allowing backdating of the Two Child Limit Payment at the time of its initial launch is not feasible. However, we remain concerned that the absence of a backdating mechanism could leave some families without the support they need. The Scottish Government should consider this when it considers its obligations under principle (g) (opportunities are to be sought to continuously improve the Scottish social security system).

Some payments that support children do allow backdating. For example, Child Benefit has a 3 month claim window. Universal Credit does not automatically backdate the child element, but a claimant can apply for an extension of the time limit to report the change, up to 13 months if they have reasons why the change was reported late. However, the draft regulations do not allow backdating even where there are special circumstances. This means some families who need support could miss out.

The Scottish Government has noted in response to questions from us that “the Two Child Limit Payment application form makes clear that an individual can and should apply as soon as they have applied for Universal Credit; they don’t need to wait for an award to be made.” However, because a reported change of circumstance can be backdated for Universal Credit, even in this case – families may lose out.

Stakeholders noted that there may be reasons why applications might be slightly delayed. Certain groups, such as single parent families, may be more likely to be affected.

“Dealing with the fallout of various traumas – more likely around the time of childbirth – is also likely to impair [individuals] ability to make timely claims. For vulnerable clients this means missing out on significant sums of money at crucial junctures. Child Benefit can be backdated for up to 3 months. The same approach to the Two Child Limit Payment would be humane, and allow for a small degree of flexibility at a difficult moment. It would also offer some recognition that a new benefit might not be widely known about.”² Professor Charlotte O’Brien response to SCoSS written questions, received 31 July 2025

The following hypothetical example is based on real cases.

Example

“Sarah is a lone parent who becomes ill after the birth of her third child. Two months after the birth, she is well enough to make claims. She applies for Child Benefit, reports the change of circumstances to Universal Credit, and submits an application for a Two Child Limit Payment.

Child Benefit is awarded and backdated to the child’s date of birth. Universal Credit also accepts that, given the circumstances, Sarah could not report the change on time. They extend the time limit to report the change and treat her as responsible for the child from birth. However, because she is subject to the two-child limit, she cannot receive the child element for her third child.

For the Two Child Limit Payment, the outcome is different. Because the draft regulations do not allow backdating, her entitlement only begins from the date she applied – two months after the birth – rather than from the date the two-child limit applied to her UC claim. No matter the circumstances that delayed her application, she cannot have this award backdated.”

Some stakeholders told us they support a more general backdating provision. Additional research into the impact of current policy design on the effectiveness of the Two Child Limit Payment could help to provide evidence for the future development of social security policy in line with ‘Our Charter’³Our Charter, Social Security Scotland: A Learning System, Commitment 4 and principle (f) (a system designed on the basis of evidence).

Recommendation 5: The Scottish Government should research the impact of not allowing backdating of the Two Child Limit Payment to understand who is missing out, and by how much.