A major change could be coming for benefit claimants with children. MPs are set to vote for the first time on the Government’s legislation which will see the lifting of the two-child benefit cap.
The move was announced by Chancellor Rachel Reeves in the autumn budget last year. Around 400,000 fewer children will be living in poverty this April compared with 12 months earlier as a result of the change, according to analysis by the Joseph Rowntree Foundation (JRF).
However, it warned progress on tackling poverty is likely to stall if the axe is not followed up with more action. “Without further changes, relative poverty levels remain stuck at a high level after April 2026,” the JRF said. ChronicleLive recently reported how HMRC will increase Child Benefit payments from April 2026.
Regarding the benefit cap, the Conservatives have said they will be voting against the Universal Credit (Removal of Two Child Limit) Bill at second reading on Tuesday. Children’s doctors, teachers, health visitors and anti-poverty charities have called on MPs to vote in support of ending the policy.
A statement issued on behalf of 63 organisations, including the Child Poverty Action Group, Citizens Advice, the Royal College of Paediatrics and Child Health, and teaching union NASUWT described the cap as “an awful experiment that hurt children”. It added: “More than any other policy, the two-child limit is responsible for driving child poverty to its current record high.
“Poverty has a devastating impact on young lives. Children going without things they need to learn and grow, living in damp homes, struggling at school, facing isolation and stress.
“Today marks the moment when we start to turn things around for the next generation. We commend the Government for making the choice to scrap the two-child limit and ask all MPs to stand with children and support this Bill.”
Labour backbenchers were among those who called for the policy, which restricts child tax credit and Universal Credit to the first two children in most households, to be scrapped. Seven were suspended from the Labour Party for voting against the Government in backing motions to lift it.
Ahead of the debate, shadow work and pensions secretary Helen Whately said: “Labour are unleashing a £14 billion benefits spending spree. Worse, this shovels nearly half the cash to jobless households with average payouts of £25,000.
“Work is being punished while worklessness is rewarded. Keir Starmer was happy to take money away from pensioners, but he doesn’t have the backbone to say no to his own MPs when they demand runaway welfare spending.
“Labour and Reform both want to blow the cap. Only the Conservatives are willing to say no, restore discipline to welfare, support work, and protect taxpayers.”
The Office for Budget Responsibility (OBR) said the move will cost £3 billion a year by 2029/30. Work and Pensions Secretary Pat McFadden has previously said lifting the two-child benefit cap is an “investment” in the future.
It was first introduced by the then-Conservative government in 2017. The Bill’s first debate will take place in the Commons on Tuesday. It will be further scrutinised by MPs and peers before it is close to becoming law.
