Money Wellness

cost of living

Published 30 Oct 2025

2 min read

Government urged to end two-child benefit limit to fight child poverty

The Resolution Foundation has warned that if the government doesn't remove the two-child benefit cap, its efforts to reduce child poverty will have little or no impact.

Gabrielle Pickard-Whitehead - Money Wellness

Written by: Gabrielle Pickard Whitehead

Lead financial content writer

Published: 30 October 2025

The thinktank says that without action, child poverty could reach record levels by the end of this decade.

They believe small changes won’t make much of a difference, but if the government removes the two-child cap in full, 330,000 children could escape poverty today. Another 150,000 children could be lifted out of poverty by 2029-30.

Pressure to scrap the two-child benefit limit

The two-child benefit cap was introduced in 2017. It stops families on low incomes from receiving the full £3,500 per child for any third or subsequent children. This rule affects around 1.7 million children in the UK, according to recent Department for Work and Pensions (DWP) figures.

The government has resisted calls to remove the cap because it costs around £3.5bn a year. But with a new child poverty plan due in November, many are pushing for the cap to be removed as part of that strategy.

Campaigners, including charities like Citizens Advice, Barnardo’s and Save the Children UK, argue that the cap is a key factor driving child poverty. They believe that ending the cap would be the most cost-effective way to help families and reduce poverty.

Support for families struggling to make ends meet

If you’re struggling financially, there are ways to get help:

  • Food banks: if you can’t afford food, your local food bank can offer assistance. They can also point you to other resources in your area.
  • Local councils: every council in England has extra funding to help those struggling due to the cost of living. Reach out to your local council for details on what support is available.
  • Energy suppliers: if you’re behind on energy bills, most providers have financial support schemes to help those who are really struggling.

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.

 

Gabrielle Pickard-Whitehead - Money Wellness

Written by: Gabrielle Pickard Whitehead

Lead financial content writer

Gabrielle is an experienced journalist, who has been writing about personal finance and the economy for over 17 years. She specialises in social and economic equality, welfare and government policy, with a strong focus on helping readers stay informed about the most important issues affecting financial security.

Published: 30 October 2025

The information in this post was correct at the time of publishing. Please check when it was written, as information can go out of date over time.

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Gabrielle Pickard-Whitehead - Money Wellness

Written by: Gabrielle Pickard Whitehead

Lead financial content writer

Published: 30 October 2025

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