The Telegraph

Jobless families on benefits handed £6k boost as tax bomb hits middle class

UK Parliament

Universal Credit (Removal of Two Child Limit) Act 2026

Youtube

- YouTube

Office for Budget Responsibility

Economic and fiscal outlook  November 2025

Two Child Benefit Cap Ends And State Pensions Rise Starting Today

GOV.UK

Budget 2025 speech

Consultation on reforms to the child elements of welfare support

Conservatives

Cut tax, cut spending and get Britain back to work

The Sun

'SERIOUS MISTAKE' Working families will fund ‘benefits payday’, Tories warn as two-child cap costing £3.5billion is lifted

RTE.ie

Two-child benefit cap comes to an end in the UK

GB News

as Labour starts dishing out billions in handouts

Two-child limit scrapped as historic Bill to lift 450,000 children out of poverty becomes law

MelJStride

RachelReevesMP

The i Paper

Farage and Badenoch in race to be nastiest on welfare, Labour says

Metaculus

Universal Basic Income by 2030

The U.K. government officially lifted the two-child benefit cap on Monday, after Parliament passed the Universal Credit (Removal of Two Child Limit) Act, which received Royal Assent on March 18, 2026.

The U.K. government officially lifted the two-child benefit cap on Monday, after Parliament passed the Universal Credit (Removal of Two Child Limit) Act, which received Royal Assent on March 18, 2026.

The policy, which the Conservative Party first introduced in 2017, restricted child tax credit and universal credit to a claimant's first two children, in an effort to make the welfare system "fairer" and ensure those on benefits face "the same choices as those supporting themselves solely through work."

The policy, which the Conservative Party first introduced in 2017, restricted child tax credit and universal credit to a claimant's first two children, in an effort to make the welfare system "fairer" and ensure those on benefits face "the same choices as those supporting themselves solely through work."

U.K. Chancellor Rachel Reeves first announced that Labour would abolish the cap in November 2025, when delivering the <a target="_blank" rel="noopener noreferrer nofollow" href="https://www.verity.news/story/2025/uk-chancellor-reeves-raises-b-in-taxes-at-budget">2025 Budget</a> to the House of Commons, following <a target="_blank" rel="noopener noreferrer nofollow" href="https://www.verity.news/story/2025/-labour-mps-push-gambling-tax-hike-to-end-benefit-cap">sustained pressure</a> from Labour backbenchers.

U.K. Chancellor Rachel Reeves first announced that Labour would abolish the cap in November 2025, when delivering the 2025 Budget to the House of Commons, following sustained pressure from Labour backbenchers.

The incumbent Labour government believes that lifting the cap will raise approximately 450,000 children out of relative poverty by the end of this Parliament, with annual costs of £3 billion ($3.97 billion) by 2029-30, according to the Office for Budget Responsibility.

The incumbent Labour government believes that lifting the cap will raise approximately 450,000 children out of relative poverty by the end of this Parliament, with annual costs of £3 billion ($3.97 billion) by 2029-30, according to the Office for Budget Responsibility.

Ahead of the cap's removal, the Conservative Party published an analysis on Sunday claiming that repealing the two-child benefit cap would provide 186,590 non-working households in the country with £3,647 per child per year, which it alleged would cost the U.K. Treasury £3.5 billion annually.

Mel Stride

Ahead of the cap's removal, the Conservative Party published an analysis on Sunday claiming that repealing the two-child benefit cap would provide 186,590 non-working households in the country with £3,647 per child per year, which it alleged would cost the U.K. Treasury £3.5 billion annually.

The intervention follows Conservative Party Leader Kemi Badenoch's promise to reinstate the limit if the Conservatives return to power. Reform UK also advocates for reimposing the cap, after U-turning on the policy in February.

Reform UK

The intervention follows Conservative Party Leader Kemi Badenoch's promise to reinstate the limit if the Conservatives return to power. Reform UK also advocates for reimposing the cap, after U-turning on the policy in February.

The Telegraph #

UK Parliament #

Youtube #

Office for Budget Responsibility #

ITV #

GOV.UK #

Conservatives #

The Sun #

RTE.ie #

GB News #

The i Paper #

Metaculus #

The UK government officially lifted the two-child benefit cap on April 6, 2026, after the Universal Credit (Removal of Two Child Limit) Act received Royal Assent on March 18, 2026. The policy, first introduced by the Conservatives in 2017, restricted child tax credit and universal credit to a family's first two children.

The UK government officially lifted the two-child benefit cap on April 6, 2026, after the Universal Credit (Removal of Two Child Limit) Act received Royal Assent on March 18, 2026. The policy, first introduced by the Conservatives in 2017, restricted child tax credit and universal credit to a family's first two children.

The government estimates the cap's removal will lift 450,000 children out of poverty, with eligible families set to receive around £3,647 per additional child per year. The policy is projected to cost approximately £3.5 billion annually.

The government estimates the cap's removal will lift 450,000 children out of poverty, with eligible families set to receive around £3,647 per additional child per year. The policy is projected to cost approximately £3.5 billion annually.

Conservative analysis found that 186,590 workless households with more than two children stand to receive benefits for an additional 249,140 children, costing over £908 million. A household of two unemployed adults and three children could receive a £6,400 annual increase.

Conservative analysis found that 186,590 workless households with more than two children stand to receive benefits for an additional 249,140 children, costing over £908 million. A household of two unemployed adults and three children could receive a £6,400 annual increase.

Chancellor Rachel Reeves confirmed the cap's abolition in her November 2025 Budget following sustained pressure from Labour backbenchers. Prime Minister Sir Keir Starmer described the move as "one of the proudest moments of this Labour Government" in a piece written for The Guardian.

Chancellor Rachel Reeves confirmed the cap's abolition in her November 2025 Budget following sustained pressure from Labour backbenchers. Prime Minister Sir Keir Starmer described the move as "one of the proudest moments of this Labour Government" in a piece written for The Guardian.

Conservative leader Kemi Badenoch said the decision amounted to "another handout to those on benefits" while working people faced rising costs. Shadow Chancellor Sir Mel Stride called it "Rachel Reeves's benefits payday – paid for by working families."

Conservative leader Kemi Badenoch said the decision amounted to "another handout to those on benefits" while working people faced rising costs. Shadow Chancellor Sir Mel Stride called it "Rachel Reeves's benefits payday – paid for by working families."

Education Secretary Bridget Phillipson said the cap had been "the biggest single driver of child poverty" over the past decade, while Amnesty International said the move "fails to go far enough" and called for further reforms including removing the benefit cap and scrapping the sanctions system.

Education Secretary Bridget Phillipson said the cap had been "the biggest single driver of child poverty" over the past decade, while Amnesty International said the move "fails to go far enough" and called for further reforms including removing the benefit cap and scrapping the sanctions system.

Scrapping the two-child cap hands workless households a £6,400 annual windfall while working families face "Awful April" tax hikes on everything from council tax to water bills. The welfare bill is already ballooning toward £407bn, and piling on £3.5bn more in benefits spending is fiscally reckless. A fair system demands that families on benefits make the same financial choices as those footing the bill.

Scrapping the two-child cap hands workless households a £6,400 annual windfall while working families face "Awful April" tax hikes on everything from council tax to water bills. The welfare bill is already ballooning toward £407bn, and piling on £3.5bn more in benefits spending is fiscally reckless. A fair system demands that families on benefits make the same financial choices as those footing the bill.

The two-child cap was the single biggest driver of rising child poverty over the last decade, condemning 300,000 kids to hunger and hardship through no fault of their own. Lifting it delivers the biggest reduction in child poverty over a Parliament since records began, pulling 450,000 children out of poverty. Reinstating it, as Conservatives and Reform promise, is morally repugnant and a deliberate choice to plunge kids back into poverty.

The two-child cap was the single biggest driver of rising child poverty over the last decade, condemning 300,000 kids to hunger and hardship through no fault of their own. Lifting it delivers the biggest reduction in child poverty over a Parliament since records began, pulling 450,000 children out of poverty. Reinstating it, as Conservatives and Reform promise, is morally repugnant and a deliberate choice to plunge kids back into poverty.

Rachel Reeves

UK Scraps Two-Child Benefit Cap, Aiding 450K Kids

United Kingdom

Welfare

Taxation

Politics

The two-child cap was the single largest driver of rising child poverty over the last decade, condemning 300,000 kids to hunger and hardship through no fault of their own. Lifting it delivers the biggest reduction in child poverty over a single Parliament since records began, pulling 450,000 children out of destitution and giving them a real chance at life.

The two-child cap was the single largest driver of rising child poverty over the last decade, condemning 300,000 kids to hunger and hardship through no fault of their own. Lifting it delivers the biggest reduction in child poverty over a single Parliament since records began, pulling 450,000 children out of destitution and giving them a real chance at life.

Scrapping the two-child cap hands workless households a £3,647 annual windfall for every child they have, while working families face "Awful April" tax hikes on everything from council tax to water bills. With the welfare bill already ballooning toward £407 billion, it is beyond fiscally reckless of the government to pile on a further £3.5 billion in additional benefits spending.

Scrapping the two-child cap hands workless households a&nbsp;£3,647 annual windfall for every child they have, while working families face "Awful April" tax hikes on everything from council tax to water bills. With the welfare bill already ballooning toward £407 billion, it is beyond fiscally reckless of the government to pile on a further £3.5 billion in additional benefits spending.

UK Scraps Two-Child Benefit Cap

UK Scraps Two-Child Benefit Cap, Aiding 450K Kids

The Spin

Articles on this story

Sign Up for Our Free Newsletters
Sign Up for Our Free Newsletters

UK Scraps Two-Child Benefit Cap

UK Scraps Two-Child Benefit Cap, Aiding 450K Kids

The Spin

Articles on this story

Sign Up for Our Free NewslettersSign Up for Our Free Newsletters

Sign Up for Our Free Newsletters
Sign Up for Our Free Newsletters