Draft The Two Child Limit Payment (Scotland) Regulations 2026

DRAFT SCOTTISH STATUTORY INSTRUMENTS

2026 No. SOCIAL SECURITY

The Two Child Limit Payment (Scotland) Regulations 2026

Made - - - - ***

Coming into force - - ***

The Scottish Ministers, in exercise of the powers conferred by sections 79 and 95 of the Social Security (Scotland) Act 2018(^[4]), make the following Regulations.

In accordance with section 96(2) of that Act, a draft of these Regulations has been laid before and approved by resolution of the Scottish Parliament.

In accordance with section 97(2) of that Act, the Scottish Ministers have informed the Scottish Commission on Social Security of their proposals, notified the Scottish Parliament that they have done so and made their proposals publicly available by such means as they consider appropriate.

PART 1 Introduction

Citation, commencement, interpretation and application

1. These Regulations may be cited as the Two Child Limit Payment (Scotland) Regulations 2026.

Commencement

2. These Regulations come into force on …..

Overview

3.—(1) Part 2 makes provision about the interpretation of these Regulations.

(2) Part 3 makes provision about eligibility and the assistance that is to be given to eligible individuals in connection with a dependant (referred to in these Regulations as “two child limit payment”).

(3) The schedule makes provision about matters of procedure for applying for, and determining entitlement to, a two child limit payment.

PART 2 Interpretation

General

Interpretation

4. In these Regulations—

“the 2018 Act” means Social Security (Scotland) Act 2018(^[5])

“two-child limit” means the limit imposed on the amount available under the child element of an award of universal credit under section 10(1A) of the Welfare Reform Act 2012(^[6]).

“child element of a universal credit award” means that element of universal credit which is awarded under section 10 of the Welfare Reform Act 2012.

Expressions about time and timing

When an application is to be treated as made

5. A reference to the day on which an application is made means the day on which an application is received by the Scottish Ministers or, as the context may require, the day on which the application is treated as having been made by virtue of the schedule.

Meaning of “working day”

6. A “working day” means a day other than—

(a) a Saturday

(b) a Sunday, or

(c) a day which is a bank holiday in Scotland under the Banking and Financial Dealings Act 1971(^[7]).

Meaning of “week”

7. A “week” means a period of 7 consecutive days.

Expressions about inter-personal relationships

Meaning of “dependant”

8.—(1) An individual (“person A”) is to be regarded as the dependant of another individual (“person B”) on a day only if—

(a) person B has been awarded universal credit for an assessment period that includes the day in question, and

(b) person A is recognised to be a child or qualifying young person for whom person B has responsibility in terms of that award of assistance.

(2) It is immaterial for the purpose of this regulation that the award of assistance to person B referred to in sub-paragraph (1) does not include any amount in respect of person A due to a rule that restricts the number of dependants in respect of whom person B can be given that type of assistance.

(3) For the purpose of this regulation, person A is not to be regarded as a dependant of person B for an assessment period that includes the day in question where the decision to recognise person A as a child or qualifying young person for whom person B has responsibility in terms of that award of assistance was made in error (whether or not induced by the individual).

(4) For the avoidance of doubt, sub-paragraph (3) includes decisions which are made retrospectively.

Expressions about social security assistance

Meaning of determination of entitlement to two child limit payment

9.—(1) Unless the context otherwise requires, references in these Regulations to a determination of an individual’s entitlement to a two child limit payment are to a determination made—

(a) by the Scottish Ministers—

(i) under paragraph 3 of the schedule (duty to make a determination of entitlement), or

(ii) (following a request for a re-determination) under paragraph 16 of the schedule (duty to re-determine and period allowed),

(b) by the First-tier Tribunal for Scotland—

(i) under paragraph 22 of the schedule (First-tier Tribunal’s power to determine entitlement) in an appeal against a determination made by the Scottish Ministers, or

(ii) (subsequent to such an appeal) under its Tribunals Act powers,

(c) by the Upper Tribunal for Scotland under its Tribunals Act powers (subsequent to an appeal against, or following a review of, a decision of the First-tier Tribunal).

(d) by the Court of Session under its Tribunal Act powers (in an appeal against a decision of the Upper Tribunal), or

(e) by the Supreme Court of the United Kingdom–

(i) in an appeal under section 40 of the Court of Session Act 1988 against a decision of the Court of Session, or

(ii) on a reference made by the Court of Session under schedule 6 of the Scotland Act 1998.

(2) In this regulation, “Tribunals Act powers” means powers under Part 6 (review or appeal of decisions) of the Tribunals (Scotland) Act 2014(^[8]).

(3) A determination of an individual’s entitlement to a two child limit payment consists of—

(a) a decision about whether or not the eligibility rules specified in regulation 15 (eligibility for two child limit payment) are satisfied in the individual’s case,

(b) if those rules are satisfied, a decision (taken in accordance with these Regulations) about what assistance the individual is entitled to be given, and

(c) if the determination is to be made on the basis that the individual has ongoing entitlement to a two child limit payment, a decision about what assistance the determination is to entitle the individual to be given in the future.

Meaning of reference to Universal Credit

10. For the purposes of these Regulations, references to universal credit are to universal credit under Part 1 of the Welfare Reform Act 2012(^[9])

Meaning of references to universal credit being awarded

11.—(1) An individual is not to be regarded as having been awarded universal credit for a period if—

(a) the award was made in error (whether or not induced by the individual), or

(b) the sum awarded to the individual for the period is £0.

(2) In sub paragraph (1)(b), the reference to “the sum awarded” means, in a case where a deduction has been made—

(a) in respect of any liability the individual has to another person, or

(b) by way of a sanction,

the sum that would have been awarded had the deduction not been made.

Meaning of “assessment period” in relation to universal credit

12. “Assessment period” means a period in respect of which universal credit may be payable to the individual in question in accordance with section 7 of the Welfare Reform Act 2012.

Meaning of application of two-child limit

13. The two-child limit is not to be regarded as having been applied in respect of a dependant for any period for which the individual was awarded the child element of universal credit for the dependant.

PART 3 Eligibility and assistance to be given

Duty to give assistance

14. The Scottish Ministers must give an individual whatever assistance the individual is entitled to be given under a determination of the individual’s entitlement to a two child limit payment.

Eligibility for a two child limit payment

15. An individual is eligible for a two child limit payment in respect of a dependant if—

(a) the individual has made an application for the payment (or an application is treated as having been made by the individual by virtue of a provision in the schedule requiring the Scottish Ministers to make a determination without application in the individual’s case),

(b) no other individual has received, or is due to receive, a two child limit payment in respect of the dependant and the period that the payment will cover (other than in circumstances where paragraph 10(1)(b)(determination following change of circumstances etc.) of the schedule applies),

(c) the individual is ordinarily resident in Scotland on the day the application is made,

(d) the individual has been awarded universal credit for an assessment period which includes the day that the application is made, and

(e) the individual does not currently receive an award of the child element of universal credit for the dependant due to the application of the two child limit for that assessment period.

Beginning of entitlement to assistance

16. Where a determination is made that an individual is entitled to a two child limit payment, the date on which entitlement begins is the date on which the application is made or treated as made in accordance with regulation 5 (when an application is to be treated as made).

Ongoing entitlement

17.—(1) A determination of an individual’s entitlement to a two child limit payment in respect of a dependant and assessment period may be made on the basis that the individual has an ongoing entitlement to a two child limit payment.

(2) A determination of on-going entitlement is made on the basis that the individual will continue to be entitled to a two child limit payment in respect of that dependant in each subsequent assessment period until—

(a) the end of the assessment period before the assessment period where—

(i) the individual is no longer regarded as having been awarded universal credit in accordance with regulation 11(1) (meaning of references to universal credit being awarded),

(ii) the child or qualifying young person is no longer regarded as a dependant of the individual in accordance with regulation 8 (meaning of dependant ),

(iii) the individual receives an award of the child element of universal credit for the dependant, or

(iv) the individual dies.

(b) the end of the assessment period in which the individual ceases to be ordinarily resident in Scotland and no circumstance in sub-paragraph (a) applies.

Circumstances in which assistance may be suspended

18.—(1) The Scottish Ministers may decide that an individual who has an ongoing entitlement to a two child limit payment in respect of a period by virtue of regulation 17 (ongoing entitlement) is not to become entitled to be given some or all of that assistance at the time at which the individual otherwise would in accordance with that regulation, as read with regulation 29 (time of payment) (referred to in these Regulations as a decision to suspend the individual’s two child limit payment).

(2) Where such a decision is made in respect of an individual, payments of a two child limit payment to that individual are to be suspended until such time as the Scottish Ministers decide to end the suspension in accordance with regulation 22 (ending a suspension).

(3) The Scottish Ministers may decide to suspend an individual’s two child limit payment only in the circumstances where—

(a) paragraph 25(2) of the schedule (obtaining information to make determination) applies, or

(b) the Scottish Ministers have made arrangements (whether under section 85A of the 2018 Act, section 85B of the 2018 Act or otherwise) for a person to receive the two child limit payment on the individual’s behalf, and the Scottish Ministers consider that it is necessary to suspend the two child limit payment—

(i) in order to protect the individual from the risk of financial abuse, or

(ii) because the person with whom the Scottish Ministers have made arrangements is unable to continue to receive the two child limit payment.

Having regard to financial circumstances

19. The Scottish Ministers must have regard to an individual’s financial circumstances prior to making a decision to suspend payment to the individual of some or all of a two child limit payment.

Information to be given following suspension

20.—(1) Having made a decision to suspend an individual’s two child limit payment, the Scottish Ministers must inform the individual of—

(a) their decision to suspend the individual’s two child limit payment,

(b) the reasons for their decision,

(c) any steps which might be taken by the individual in order for the Scottish Ministers to consider ending the suspension, and

(d) the individual’s right under regulation 21 (right to review suspension) to require the Scottish Ministers to review their decision.

(2) The Scottish Ministers must fulfil their duty under sub-paragraph (1) in a way that leaves the individual with a record of the information which the individual can show to, or otherwise share with, others.

Right to review suspension

21.—(1) An individual may require the Scottish Ministers to review a decision to suspend that individual’s two child limit payment.

(2) The Scottish Ministers must—

(a) complete a review mentioned in sub-paragraph (1) within 31 days beginning with the day on which they received notice from the individual requiring them to review their decision,

(b) inform the individual of the outcome of the review including the reasons for it.

(3) The Scottish Ministers must fulfil their duty under sub-paragraph (2)(b) in a way that leaves the individual with a record of the information which the individual can show to, or otherwise share with, others.

Ending a suspension

22. The Scottish Ministers are to make a decision to end a suspension where—

(a) the individual provides the information mentioned in paragraph 25(1) of the schedule (obtaining information to make determination) and the Scottish Ministers consider that they do not require to make a determination without application,

(b) regulation 18(3)(a) (circumstances in which assistance may be suspended) applies and the Scottish Ministers make a determination without application under paragraph 6 (determination following official error resulting in underpayment), 7 (determination following error resulting in overpayment), 8 (determination following backdated award of assistance), 10 (determination following change of circumstances, etc.), 11 (determination following award of a two child limit payment in respect of another dependant), 12 (determination following cessation of award of two child limit payment) or 13 (determination to effect a deduction decision) of the schedule,

(c) the Scottish Ministers make a determination under paragraph 25(4) of the schedule (obtaining information to make determination),

(d) the circumstances mentioned in regulation 18(3)(b) no longer apply, or

(e) the Scottish Ministers consider it appropriate in the circumstances, including having regard to the financial circumstances of the individual.

Effect of suspension ending

23. When—

(a) the suspension of an individual’s two child limit payment ends, and

(b) under the latest determination of the individual’s entitlement to a two child limit payment relating to the period of the suspension the individual would have become entitled to be given a two child limit payment during that period,

the individual is immediately to be given the two child limit payment that the individual would have become entitled to be given under the determination during the period of suspension.

Interpretation: regulations 18 to 23

24.—(1) In regulations 18 to 23—

(a) references to an individual’s two child limit payment being suspended are to an individual not becoming entitled to be given some or all of the two child limit payment in respect of a period that the individual otherwise would at the time, or times, prescribed by regulation 17 (ongoing entitlement), and

(b) “financial abuse” includes—

(i) having money or other property stolen,

(ii) being defrauded,

(iii) being put under pressure in relation to money or other property,

(iv) having money or other property misused.

Individual’s right to stop receiving assistance

25.—(1) An individual may request that the Scottish Ministers cancel a determination of the individual’s entitlement to assistance.

(2) On being requested to do so under sub-paragraph (1), the Scottish Ministers must cancel a determination—

(a) with immediate effect, or

(b) with effect from a later date specified in the request.

(3) An individual is not entitled, and is not to become entitled, to be given assistance by a determination after it has been cancelled.

(4) A request under sub-paragraph (1) must be made in such form as the Scottish Ministers require.

(5) The Scottish Ministers must publicise any requirements for the time being set under sub-paragraph (4).

Later determination supersedes earlier

26.—(1) The latest determination of an individual’s entitlement to a two child limit payment in respect of a given period supersedes any earlier determination insofar as it deals with the individual’s entitlement to a two child limit payment in respect of the same period .

(2) Accordingly the individual is not entitled, and is not to become entitled, to be given a two child limit payment in respect of that period by the earlier determination insofar as it has been superseded.

Value and form of a two child limit payment

27.—(1) The value of a two child limit payment in respect of a dependant is £292.81 per assessment period.

(2) A two child limit payment may only be given as money, except as provided for by sub-paragraph (3).

(3) Where an individual has a liability to the Scottish Ministers under section 63 of the 2018 Act (liability for assistance given in error), under paragraph 29 of the schedule of these Regulations, or under paragraph 29 of the schedule of the Scottish Child Payment Regulations 2020(^[10]) the individual’s two child limit payment may be given (in whole or in part) by way of deduction, at a reasonable level, from that liability either—

(a) with the agreement of the individual, or

(b) without the individual’s agreement, where the individual has unreasonably refused to agree to the assistance being given in that form.

(4) For the purpose of sub-paragraph (3), “reasonable level” means a level that is reasonable having regard to the financial circumstances of the individual.

(5) Where the value referred to in sub-paragraph (1) is amended, that amended value is to take effect in respect of the two child limit payment from the first full complete assessment period which begins on or after the date the amended value comes into force.

Death of a dependant

28.—(1) Sub-paragraphs (2) to (4) apply where—

(a) in respect of a dependant, a determination of an individual’s ongoing entitlement to the two child limit payment has previously been made, and

(b) that dependant is deceased.

(2) These Regulations continue to apply in respect of the assessment period in which the death occurred and the following two assessment periods provided the child or qualifying young person was, in the assessment period in which they died, regarded as a dependant of the individual in accordance with regulation 8 ( meaning of dependant).

(3) The child or qualifying young person is to be treated as remaining the dependant of that individual for those periods.

(4) References in these Regulations to a dependant are to be construed as if that dependant were not deceased.

Time of payment

29.—(1) Following a determination that an individual is entitled to a two child limit payment, the payment is to be given in accordance with sub-paragraph (2) except—

(a) where sub-paragraph (3) applies, the payment is to be given in accordance with sub-paragraph (4) or,

(b) where the payment is given as part of ongoing entitlement and sub-paragraph (5) applies, sub-paragraph (6) applies.

(2) Except where sub-paragraphs (3) or (5) apply, where a determination is made that an individual is entitled to a two child limit payment, the Scottish Ministers are to make—

(a) the first payment of a two child limit payment on a date specified in the determination, and

(b) subsequent payments in the last week of each successive period of one month as long as the individual continues to be entitled to a two child limit payment in the most recent completed assessment period by virtue of regulation 17 (ongoing entitlement).

(3) This paragraph applies where the payment is to be made pursuant to a determination made in accordance with paragraph 11 of the schedule (determination following award of a two child limit payment in respect of another dependant).

(4) Where sub-paragraph (3) applies, payments are to be made so that—

(a) the first payment is made on the same day as the next two child limit payment that is due to be made to the individual in respect of their ongoing entitlement to that payment in respect of another dependant (see paragraph 11(1)(a) of the schedule),

(b) that first payment is made, in arrears, in respect of the period beginning with the day on which the application is made and ending with the day referred to in sub-paragraph (a), and

(c) subsequent payments are made in respect of each completed assessment period in the last week of each successive period of one month as long as the individual continues to be entitled to a two child limit payment in the most recent completed assessment period by virtue of regulation 17 (ongoing entitlement).

(5) This paragraph applies where there is an ongoing entitlement and the payment is to be made following a change in the individual’s assessment period.

(6) Where sub-paragraph (5) applies, payments are to be made so that—

(a) the first payment following the change is made on the day set by Scottish Ministers, and

(b) subsequent payments are made in the last week of each successive period of one month in which the individual continues to be entitled to a two child limit payment in the most recent completed assessment period by virtue of regulation 17 (ongoing entitlement).

Amendment to the Scottish Child Payment Regulations 2020

30. In regulation 20(3) (value and form of a Scottish child payment) of the Scottish Child Payment Regulations(^[11])—.

(a) after “(liability for assistance given in error),” omit “or”, and

(b) after “these Regulations” insert “or under paragraph 29 of the schedule of the Two Child Limit Payment (Scotland) Regulations 2026(^[12])”

Signatory text

Name

St Andrew’s House

Edinburgh A member of the Scottish Government

Date