Commission calls for end to two-child benefit cap – what to do if you’re struggling

The government is under growing pressure to scrap the two-child benefit cap, a move that could lift millions of families out of poverty.

A new report from the cross-party Poverty Strategy Commission says removing the cap would be one of the most effective ways to reduce poverty across the UK.

The commission’s proposals could help 4.2 million people, including 2.2 million in ‘deep poverty’, that’s households earning less than half the official poverty line. That means a single parent with two children living on £11,013 a year or less, after housing costs.

What is the two-child benefit cap?

If you’ve had more than two children since April 2017 and are receiving universal credit or child tax credit, you probably already know that you can’t claim extra support for your third or any additional children. There are some exemptions, such as children conceived as a result of rape and babies born through multiple births.

The policy was designed to make the system ‘fairer’ for taxpayers and to align financial decisions about having children for families both on and off benefits.

How many families are affected?

The latest figures from the Department for Work and Pensions show 1 in 9 children in the UK are now affected by the policy.

Charities says it’s time for change

Major charities, including Citizens Advice, Barnardo’s and Save the Children UK, have written to the government, calling for the cap to be scrapped.

They argue that it’s the most cost-effective way to reduce child poverty. Their estimates show:

• 350,000 children could be lifted out of poverty overnight
• another 700,000 would experience less severe poverty

Where does Labour stand?

Labour has long been divided on the issue. The party has ruled out scrapping the cap immediately due to its estimated £3bn annual cost.

However, it has said it hopes to remove the cap when economic conditions allow.

What can you do right now?

If you’re struggling to make ends meet, or you're unsure what benefits you’re entitled to, we’re here to help.

You can:

• get in touch for personalised advice
• try our benefits calculator to check what financial support you might be missing out on

Don’t leave money on the table. See what you could be eligible for.