Is the government about to scrap two-child benefit cap?

The government has given its clearest indication yet that it might abolish the two-child benefit cap.

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

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

But there have been reports in the last few weeks that it could be about to happen, and when asked, ministers have refused it out.

So it’s significant that education secretary Bridget Phillipson has now gone much further, telling the BBC that the two-child benefit cap has had a "devastating impact".

What has the education secretary said?

Speaking to the Political Thinking with Nick Robinson podcast, Ms Phillipson said: “This was a Tory policy that's had a devastating impact on children and we'll sort it.

"There's a real urgency about this because every year that passes, as children are born, as they move into that system, the numbers go up, child poverty rates increase. 

“So we have to tackle it."

Ms Phillipson added that children shouldn’t be "punished" for events beyond their control, such as a parent losing their job and having to turn to benefits.

When could an announcement be made?

If the government does decide to change the two-child limit, it’d be likely to be announced in the chancellor’s Budget on 26 November.

What could replace the two-child benefit cap?

The Guardian has reported that three possible options are currently being considered.

• increasing the cap so benefits are limited to three or four children
• a tapered rate, where parents would get the most for their first child and less for subsequent children
• lifting the cap for working parents on universal credit, to encourage more people into the workforce

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.