Government under pressure to scrap two-child benefit cap

Ministers are facing renewed calls to scrap the cap on the number of children you can claim benefits for.

Since April 2017, parents have only been able to claim child tax credit or universal credit for a maximum of two children per household.

But the government has faced strong pressure to lift the cap, with the Child Poverty Action Group (CPAG) this week urging it to scrap the policy in its upcoming child poverty strategy.

Otherwise, the charity believes there will be more children in poverty at the end of this parliament than when the government took office.

CPAG also thinks abolishing the two-child limit would be “the most cost-effective way” of reducing child poverty and “instantly” lift 350,000 children over the poverty line.

1m children in working families affected by two-child limit

Figures from CPAG show that the number of children in working families affected by the two-child limit will reach one million next month.

Meanwhile, government data shows that 59% of families affected by the policy are in work, and that most of those who aren’t working have young children or are ill or disabled.

"The two-child limit has parents dancing on a pin - trying to work as much as they can, raise their children, and pay the bills - but the sums don’t add up,” said Alison Garnham, chief executive of CPAG.

“These are the families that work in our schools, our hospitals, our job centres and services and the strain of the two-child limit on them is intolerable.”

What’s the impact of the two-child limit?

CPAG surveyed working parents affected by the two-child limit and found that in the last year, 93% had struggled to pay for food because of the policy.

This was followed by:

• clothing - 84%
• gas or electricity - 72%
• childcare - 49%
• travel - 44%
• rent or mortgage payments - 43% 

Government hints at changing course

Although the government has said it does want to lift the two-child benefit cap, it’s also stated it’ll only do so when economic conditions allow.

But recently, ministers have gone further, with education secretary Bridget Phillipson telling Sky News in May that “it’s not off the table”.

“It’s certainly something that we’re considering,” she said.

And earlier this month, early years education minister Stephen Morgan refused to rule out scrapping the cap in an effort to tackle child poverty.

Speaking to The i Paper, he said: “We’re ambitious for every child, and we will set out more details in terms of tackling child poverty in our child poverty strategy, which will be published later this year, using all levers available to us to bring down child poverty.”

Find out what benefits you can claim

If you’re struggling to cover your day-to-day expenses because of the two-child benefit cap, we can check you’re getting everything you’re entitled to.

So get in touch or try our benefits calculator to see what support you could be eligible for.