Two-child benefit cap scrapped

The cap on the number of children you can claim benefits for has officially been scrapped.

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 in last year’s Budget, chancellor Rachel Reeves confirmed the cap will be lifted from April 2026, which she believes will lift 450,000 children out of poverty.

And today, the legislation ending the two-child limit has become law.

450,000 children will be lifted out of poverty

The government has described the two child-limit as “the biggest single driver of child poverty” and a policy that’s pushed 100 children a day into hardship.

Ministers believe that scrapping the cap will lift 450,000 children out of poverty by the end of this parliament.

And they’re also hopeful that the change in the law will have a big impact on working families.

In fact, the Department for Work and Pensions points out that around 60% of households affected by the two-child limit have a parent in work, and nearly half were not on universal credit when any of their children were born.

Breaking the cycle of child poverty

Work and pensions secretary Pat McFadden called the change in the law “historic” and said it marks “a turning point for 450,000 children across Britain”.

“Children growing up in poverty are far more likely to leave school without qualifications and end up not in work or education as young adults,” he commented.

“We’re determined to break that cycle once and for all and give every child the best start in life.”

Employment minister Dame Diana Johnson added that scrapping the cap means hundreds of thousands of children “will grow up with greater security and opportunity”.

“For too long, the two-child limit has held children back through no fault of their own,” she said.

Find out what benefits you can claim

If you’re a parent struggling with your day-to-day expenses, we can check you’re getting all the support you’re entitled to.

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

You might be able to access more help than you realise.