Child Tax Credit has been replaced by Universal Credit, except in certain narrow circumstances. The introduction of Universal Credit was a vital reform to deliver a welfare system that helps people into work, ensures work pays, and supports people in their time of need without trapping them in welfare.
A benefits system that automatically increases payments with each new child is not sustainable. In 2022, 85 per cent of families had two or fewer children. As a result, my ministerial colleagues feel it is proportionate to provide support via Child Tax Credits for a maximum of two children.
Additionally, I believe that families on benefits should face the same financial choices when deciding to grow their family as those supporting themselves solely through work. I do, however, recognise that some claimants are not able to make the same choices about the number of children in their family, which is why exceptions have been put in place to ensure compassion, provide flexibility and protect certain groups.