Commentary on provisions of Act Section 14: Changes to child element of universal credit
This section amends section 10 of the Welfare Reform Act 2012 in relation to the calculation of an award of Universal Credit. Subsection (2) inserts a new subsection into that section 10 which provides that an award of universal credit will only include amounts (the "child element") in respect of a maximum of two children or qualifying young persons for whom a claimant is responsible.
	The limit of two will not apply to the additional amount that is paid in respect of a child or qualifying young person who is disabled. Subsection (3) amends the section 10(2) of the Welfare Reform Act 2012 to allow the Secretary of State to make regulations providing for the inclusion of this amount for each disabled child or qualifying young person for whom the claimant is responsible.
	Subsection (4) amends section 10(4) of the Welfare Reform Act 2012 to provide that the Secretary of State may make regulations to allow for an amount to be included in the child element for a child or qualifying young person in certain circumstances where the number of children or qualifying young persons exceeds two, for example in the case of a multiple birth prior to which the claimant was responsible for fewer than two children or qualifying young persons.
	Subsection (5) amends the Universal Credit Regulations 2013 to remove the distinction between the first and subsequent children or qualifying young persons in the rate of the child element. This means there will be a single rate for the child element instead of the current situation where there is a higher rate payable for the first child or qualifying young person which corresponds with the family element in child tax credit.
	Subsection (6) provides that the Secretary of State may make regulations for transitional or transitory or savings provision. For example, it is intended that savings will be made so that existing claimants who are already receiving the child element in respect of more than two children or qualifying young persons at the point the section comes into force will continue to receive an amount in the child element in respect of each of them, and a higher rate of child element for their first child or qualifying young person, such that they will not see a reduction in the child element of their award where there is no change in circumstances. However, such claimants will not be entitled to any further amounts for new children or qualifying young persons for whom the claimant becomes responsible after the implementation date where this would cause the limit of two to be exceeded, and the higher rate will cease to be payable once the claimant ceases to be responsible for the first child or qualifying young person.