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UK Lifts Two-Child Benefit Cap, Restoring Support for Larger Families

The move is projected to lift 450,000 children out of poverty at a cost of about £3.5 billion a year.

Overview

  • The government ended the two-child limit on Universal Credit and child tax credit on Monday, April 6, restoring payments for third and later children.
  • Ministers say families will receive roughly £3,647 per additional child each year, which is about £300 a month, as part of the restored child element.
  • The Treasury puts the yearly cost near £3.5 billion, and Conservatives cite a £6,400 gain for a jobless family of five that Labour says misrepresents disability benefits.
  • Charities and parents report immediate relief, with some saying children can now have proper school uniforms and join trips, and campaigners note most affected children live in working families.
  • The rollout arrived alongside other changes that raised the state pension, increased the Universal Credit standard rate, and updated day-one paternity leave and statutory sick pay rules.