I thank noble Lords again for another interesting debate, to which I have listened very attentively. Without wanting to get into the evidence, I read this report when it came out, although I may have forgotten all the page numbers.
As I have already said, the current benefits structure adjusts automatically to family size and removes the need for families supported by benefits to consider whether they can afford to support additional children. The mean number of dependent children per family is 1.7, and 86% of families have only one or two children. The amendments that we are looking at now relate to exemptions from the policy.
Amendments 2, 4, 5, 6, 12, 13 and 14 isolate five different groups: victims of rape; kinship carers; those who have previously claimed tax credits as a single parent but are now part of a step-family or cohabiting multiple family; those who have fled domestic violence; those who have suffered a bereavement of their husband, wife, civil partner or cohabitating partner. Amendment 15 would allow an exemption where the child is a member of the household through being part of a multiple birth. Amendment 18 would allow for an exemption in exceptional circumstances, as defined by the Social Security Advisory Committee. Amendment 20 would allow couples to claim the child element for three or four children plus any children to which an exemption would apply.
I make clear to noble Lords that most of these amendments are not actually necessary for inclusion in the Bill because we have already identified the need for exemptions to apply in certain circumstances. Clause 11(4) and Clause 12(4) provide the necessary powers to specify exemptions to the limit of two children or young persons for the purposes of calculating the child element in the two different benefits.
We already have special provisions in the benefits system for people fleeing domestic abuse and suffering bereavement, and we have already talked about kinship carers. On bereavement, to pick up the point made by the noble Baroness, Lady Manzoor, and the right reverend Prelate the Bishop of Portsmouth, we are introducing a system of paying a lump sum of £5,000, with 12 payments of £400. Those payments will be disregarded from other benefits such as universal credit.
On the point made by the noble Earl about care leavers, we recognise, as I said before, the additional barriers that care leavers experience and we have a series of policies to support them already.
As I have mentioned, we will exempt a third or subsequent child or young person who is one of a multiple birth where the multiple birth takes the number of children above two—clearly, if it is more than twins, that is covered in that category. I cannot at this stage go further on exemptions, but, as I said earlier, I will provide more information on them on Report.
I turn now to the exigency offer—that is how I read it—from the noble Baroness, Lady Sherlock, to bring in SSAC to define exemptions. The committee clearly has an important role to play in scrutinising draft social security legislation, but it is not right or proper, in our view, for the committee to have a role in policy development and delivery. Accepting this amendment would mean the Government handing policy, and
therefore expenditure decisions, to the committee. I should point out, however, that the committee has an independent research capability and so is fully able to look at particular things that it thinks are of interest. The committee can then discuss those with us in some detail. I know that because I have had several of those discussions and found them rather valuable.
Amendment 20 would apply additional support for families that are larger than the average family and have a significant additional cost. Clearly, this amendment goes straight to the heart of the Government’s aim to get welfare expenditure under control and reduce its costs by the significant amounts for which we are aiming.
Amendments 15, 18 and 20 propose to establish an appeals process similar to that which we discussed under Amendments 16 and 17. We already have those arrangements in place.
Amendment 7 has three primary objectives. It would allow claimants to receive additional individual elements of child tax credit where they believe that an exemption applies to them, and where there is no evidence to the contrary. It would require HMRC to have regard to the claimant’s right to respect for privacy and family life under Article 8.1 of the European Convention on Human Rights. It would also mean that HMRC could not ask for information about the claimant’s private, medical or sexual history in seeking to determine whether the exemption applies.
We are looking at exactly how this exemption will be applied. In response to the question from the noble Baroness, Lady Sherlock, we talked to a number of stakeholders to ensure that these exemptions are delivered in the best possible way. Clearly, to the extent that JCP is involved in doing it, we will be providing that training. We are already required by the Human Rights Act 1998 to respect claimants’ right to a private and family life, so the specific provision introduced by the noble Baroness, Lady Manzoor, is not necessary, as it is already in place through that mechanism.
As I said, we are working on the best way to deliver this exemption; there is clearly a difficult line between voluntary and non-voluntary, which we discussed under the last group of amendments. It is interesting—I remind noble Lords—that we recognise domestic violence in universal credit, and we have got that process organised. Some of the other areas are extraordinarily difficult to introduce in practice, as noble Lords will appreciate, because of the complexity that they would bring to the operation of universal credit, but some of them are more straightforward than others.
Turning to the amendment on making a claim without evidence, if the Government were to allow a presumption in favour of the claimant for all exemptions, it would regrettably leave the policy open to very significant levels of fraud and error. However, we are now working on a way to do it without undermining claimants’ rights to privacy and family life.
The noble Baroness, Lady Sherlock, asked about applying the two-children policy to all means-tested benefits. Clearly, universal credit will combine all of the means-tested support for families once it is introduced. There will be a need to adjust the calculation of housing benefit to ensure that it remains at current levels, and it will not affect the room allowances in that particular measure.
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