The UK government has announced that the controversial two-child benefit cap will be abolished — a move expected to take effect from April 2026.
Under the old rule (introduced in 2017), families receiving Universal Credit or Child Tax Credit could claim child-related benefits for only their first two children. Any third or subsequent child would no longer qualify.
The decision to end the cap comes after sustained pressure from campaigners, charities, and backbench politicians, who argued the policy unfairly penalised larger families and contributed to child poverty.
What It Means for Families
An estimated 560,000 families are set to benefit, with the typical increase in support projecting at around £5,310 per year by 2029–30.
Officials forecast the repeal of the cap could lift up to 450,000 children out of poverty by 2029–30.
The change will come at a cost — with government estimates putting the extra welfare spending at roughly £3 billion per year within the next several years.
Why It Matters
Supporters say lifting the cap addresses a long-standing injustice against larger families and helps reduce child poverty, giving children equal access to benefits regardless of birth order. Critics, however, express concern about the cost burden on public finances and question whether the reform may reduce incentives for parents to work.
Some fear the rollback will strain the welfare system amid high public spending.
The policy shift marks a major turning point in UK welfare reform — and signals a significant change in the government’s approach to supporting families.
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