End to two-child benefit cap offers £300-a-month lifeline to cash-strapped families
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The UK Labour government has scrapped the two-child benefit cap, a policy introduced in 2017 that limited Universal Credit and tax credits to the first two children in a family. Effective April 6th, low-income families will be entitled to approximately £300 per month for each additional child. The Child Poverty Action Group (CPAG) attributes rising child poverty rates to the cap, estimating it has pushed 109 children into poverty daily. The government acknowledges that removing the cap, costing £2.3 billion in the coming year, is the most cost-effective way to reduce poverty. It is estimated that nearly half a million families were affected by the limit in 2025. The government states that the change will primarily benefit working families, with about 60% of affected households having a parent in employment.
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AI-ExtractedRemoving the policy will cost £2.3bn in the coming year.
Removing the two-child limit is the ‘single most cost-effective measure available’ to drive down poverty rates.
Low-income families could be entitled to a payment equal to about £300 a month for each additional child from 6 April.
The two-child benefit policy was scrapped by the Labour government at the last budget.
CPAG estimates 109 children have been pushed into poverty every day by the two-child policy.
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