Money Wellness
Illustrated image of a child looking sad. Could reform do away with the two-child cap? What's the two child benefit cap
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calendar icon14 Jun 2024

Farage appears to back an end to the two-child benefit cap

Nigel Farage seemed to confirm that he supports getting rid of the two-child benefit cap during last night’s ITV election debate.

Farage, who is the leader of the Reform party, said he believed ‘we should encourage people to have children’. He went on to say he also backs greater tax relief for married couples.

His comments come ahead of the launch of Reform’s manifesto, which is expected to be revealed on Monday 17 June. They also pile pressure on both Labour and the Conservatives who have committed to keeping the two-child cap in place despite fierce criticism from poverty and children’s charities.  

Laurence Guinness, the chief executive of London’s child poverty charity the Childhood Trust, said: “The two-child benefit limit is an inhumane and ineffective policy that is pushing thousands of children across the UK deeper into poverty.”

We also support the end of the two-child cap. The policy disproportionally affects the families who come to us for debt support.

What is the two-child benefit cap?

The two-child cap means parents can only claim child tax credit or universal credit for a maximum of two kids per household.

The cap was introduced by the Conservative Government in 2017 in a drive to cut welfare spending.

It currently impacts about 1.5 million children. If it were to be scrapped 250,000 youngsters would be lifted straight out of poverty. And a further 850,000 kids would live in less deep poverty, according to the End Child Poverty Coalition.  

Avatar of Caroline Chell

Caroline Chell

Caroline has worked in financial communications for more than 10 years, writing content on subjects such as pensions, mortgages, loans and credit cards, as well as stockbroking and investment advice.

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