Minister says ‘budgetary decisions’ required to lift two-child benefit cap

Budgetary decisions will need to be made to pay for the Scottish Government’s scrapping of the two-child benefit cap, a minister has said.

However Social Justice Secretary Shirley-Anne Somerville declined to be drawn further on where exactly money for the policy will come from.

The SNP minister faced questions from MSPs on plans to mitigate the benefit cap as she appeared at a Scottish Parliament committee on Thursday.

The Government announced its intention to effectively scrap the cap when its Budget was published in early December, saying it is intended to begin in 2026.

Data sharing from the UK Department for Work and Pensions (DWP) will be required for this to go ahead and officials in Edinburgh and London are in talks on how this will work.

Opponents of the SNP have pointed out that no money has been set aside for the policy in the 2025/26 Scottish Budget.

At the Social Justice Committee, Conservative MSP Liz Smith quizzed Ms Somerville on the mitigation policy, asking: “Where is the money coming from?”

She pointed to estimates from the independent Scottish Fiscal Commission that the policy will cost £155 million in 2026/27 before rising to £198 million in 2029/30.

The total budget for the social security portfolio in the upcoming financial year is £8.2 billion.

Ms Somerville said: “Every single year the Government must produce that balanced budget.

“There will need to be budgetary decisions taken every year to ensure that commitment is met.”

She said it is an important investment for “families in deep poverty” and campaigners have said it is the “single biggest” policy change to tackle child poverty.

Ms Smith pressed the minister again, asking once more: “Where is the money coming from, Cabinet Secretary?”

The minister said: “I’m talking about the priorities this Government is setting – the fact that anti-poverty campaigners have said that is the reason behind the Government stating we will invest in that.

“We will need to make those changes to the budget to ensure that is delivered.

“We know that this is an additional cost to the Government but it’s an investment in people.”

Ms Somerville also told MSPs the mitigation policy will require legislation at Westminster as well as new regulations in the Scottish Parliament.