New data reveals strong link between child poverty and two-child cap on benefits

With 4.5 million UK children now living in poverty, campaigners are calling for the cap to be scrapped.

A powerful new analysis has uncovered an “extremely high” correlation between child poverty rates and the government’s two-child limit on means-tested benefits.

The finding is part of a major annual study by Loughborough University, which paints a stark picture of growing hardship for children across the UK - and highlights the need for urgent policy change.

Across the country, 31% of children (or 4.5 million) are now living in relative poverty after housing costs. But the data also reveals that poverty isn’t spread evenly. Certain areas - particularly in the North of England, West Midlands and Wales - are facing alarmingly high rates.

Child poverty across hundreds of constituencies

The research, released today by the Centre for Research in Social Policy at Loughborough University, shows that in two-thirds of UK constituencies, at least one in four children live in poverty after housing costs are accounted for.

Overall, 42% of constituencies have child poverty rates higher than the UK average.

Some of the worst-affected areas include:

• Birmingham Ladywood
• Dewsbury and Batley
• Bradford West

In parts of the North East, West Midlands and Wales, nine in ten constituencies have child poverty rates above 25%.

The role of the two-child cap

Experts say there is an urgent need to address the two-child limit on claiming means-tested benefits. This restricts child-related support to the first two children in a family.

The study found an “extremely high correlation” between child poverty rates and the number of families affected by the policy. Campaigners say that if the government is serious about tackling poverty, scrapping the two-child limit should be a top priority.

“Each year this data presents a bleak picture of life for the UK’s children,” said Dan Paskins, executive director at Save the Children and vice-chair of the End Child Poverty Coalition. “Due to the analysis finding a strong correlation between child poverty and the two-child limit, it is essential this policy is scrapped as soon as possible.”

Poverty on the doorstep of government

This isn’t just an issue for certain regions—many senior Cabinet ministers represent constituencies with above-average child poverty.

• prime minister Keir Starmer’s constituency, Holborn and St Pancras, has a rate of 47%
• chancellor Rachel Reeves represents a constituency with 32% of children in poverty
• deputy prime minister Angela Rayner’s Ashton-under-Lyne seat has a rate of 39%
• foreign secretary David Lammy’s Tottenham constituency exceeds 40%

Despite promising a Child Poverty Strategy earlier this year, the government has now delayed it until autumn. Many are calling for bold action to be included when it finally arrives.

The voice of experience

Liv, 21, an ambassador for the End Child Poverty Coalition, grew up in poverty in Liverpool. She says the impact is about more than just finances:

“Growing up in poverty is relentless, and it’s never just about money, it is about isolation, shame and missed opportunities. A proper government strategy could give us hope.”