In November, the Government announced they would end ‘two-child limit’ policy (sometimes known as the ‘two child benefit cap’).

During February and March, Parliament will be passing the laws needed to make the change. The scrap will come into effect in April, so families will be able to access more support from then onwards.

It means that, from April, nearly half a million families with more than two children will get a boost of financial support through Universal Credit.² By bringing back support for each child, families will be more able to meet their children’s needs and cover essential costs. This will go some way to help these families struggling with cost-of-living rises.

Families with more than two children already receiving Universal Credit should have their claim automatically updated. If parents do not see this change in April or May 2026 (depending on your assessment period) they can use their Universal Credit online journal to raise the issue, or contact the Universal Credit helpline or their work coach.

Families will now be entitled to the full Child Element of Universal Credit for every child, rather than just the first two. This is worth £292.81 per child per month (£3,514 per year), and can help to cover costs like food, clothing, and other essentials.³ However, some families may receive less - read 'Who isn't affected?' for more information.

Most families in the UK with more than two children, who receive Universal Credit. The change will help families where a child has been born since April 2017 (e.g. at least one child is aged under 9).

Benefit capped families. If a family is earning less than £846 per month through paid work and nobody in the family is disabled, then a family might have a separate ‘Benefit Cap’ rule applied to their Universal Credit. This limits the overall support they can get. So, some families with more than two children will not receive the increase of the Child Element once the two-child limit comes to an end, if it would mean their overall benefits went above £22,020 a year (or £25,353 in London).⁴

The government has estimated that around 70,000 families won’t see the full increase, due to being benefit capped.⁵ 

Most benefit capped households are single parent families, and most of these families have a young child.⁶

Families with older children only. Families whose children were all born before April 2017 will not see a change, as they were already able to get the full support for each child. This is because the two-child limit was introduced in 2017.

Families who have ‘no recourse to for public funds’. This restriction is applied to people with most visas, asylum seekers and undocumented migrants. This means they cannot claim Universal Credit for themselves or their children, so the change will not affect them.

Families not receiving Universal Credit. Universal Credit is a means-tested benefit, based on family income and circumstances. Nearly half of families with children, and the majority of single parent families, are entitled to Universal Credit, though not all entitled families claim support.⁷  Families who aren’t sure if they’re entitled can get advice from organisations like Turn2Us and Citizens Advice.

This benefit exists to support people and families during difficult times in their lives.  It helps parents with new babies, who would struggle to survive on statutory maternity pay alone. It helps when a parent is sick or disabled, or is caring for a disabled child. It helps when a parent is working for a low wage that means they cannot cover essential costs like food and heating.

Rather than being too generous, evidence shows that Universal Credit is often not enough to cover essential costs – with many families still needing support from foodbanks, or falling behind on rent or bills.⁸

The two-child limit has harmed many families who needed the support of Universal Credit when their situation unexpectedly changed (such as parents splitting up, a parent becoming ill or dying, or a child being disabled and needing extra care). The two-child limit decided that only the two eldest children deserved support.

Now, every child in an eligible family will be able to get financial support in difficult times, not just the first two.

More than 2 in 3 families affected by the two-child limit have a child under five.⁹ A child’s first months and years are crucial; early experiences (like not being able to afford healthy food, or living in unsafe housing) can cause lasting damage to a child’s health and development.

At the same time, parents of young children can face financial challenges due to low maternity pay, high childcare costs and barriers to employment. Universal Credit plays an important role in supporting families during this time, helping families to cover essential costs.

The two-child limit rule pushed hundreds of thousands of children into poverty. Removing the limit in April will lift around 350,000 children over the poverty line. This was the most cost-effective way for the government to lift so many children out of poverty.¹⁰ 

Most families have at least one parent working. The majority of families who aren’t currently working face barriers that make it difficult for one or both parents to work. Most families where no parent is working are single parent families, who can struggle to find flexible work, or the right childcare, especially while their children are young.

Half of families affected by the policy include a parent whose benefit conditions do not require them to look for work at the moment, due to health reasons, having a baby or toddler to care for, or being a carer for someone else.¹² Many parents not currently in work will have been in work previously and will be able to work again in future. Less than one in ten households have two parents where neither is working.¹³

When a parent is disabled, or cares for a disabled child, it can be challenging to find suitable and flexible employment.

And almost 9 in 10 families have either three or four children. The media sometimes shares ‘shock’ stories of very large families, but only 4% of affected families have more than five children.¹⁵ In some cases, larger families will be the result of ‘blended’ families, where two parents who already have children move in together.

When a family has only one potential earner, they are more likely to need financial support to cover their costs.

Circumstances change, and families who are not claiming Universal Credit when they decide to have a child is born may need at some point later on.

1. 1,613,980 children within Universal Credit households affected by the Two Child Limit policy Data tables: Universal Credit claimants statistics on the two child limit policy, April 2025 Table 01.
2. Government estimates that 480,000 households would benefit from the removal of the two child limit in 2026/27: https://publications.parliament.uk/pa/bills/cbill/59-01/0359/2CLImpactAssessment.pdf Table 7
3. https://www.gov.uk/universal-credit/what-youll-get
4. https://www.turn2us.org.uk/get-support/information-for-your-situation/benefit-cap/how-much-is-the-benefit-cap
5. Government estimates that 70,000 households will not see increase due to Benefit Cap in 2026/27: https://publications.parliament.uk/pa/bills/cbill/59-01/0359/2CLImpactAssessment.pdf Table 7
6. https://www.gov.uk/government/statistics/benefit-cap-number-of-households-capped-to-august-2025/benefit-cap-number-of-households-capped-to-august-2025
7. https://ifs.org.uk/articles/budget-measures-bring-number-families-entitled-universal-credit-7-million
8. https://www.trussell.org.uk/publications/press-release/almost-half-of-people-receiving-universal-credit-ran-out-of-food-within-the-last-month; https://www.jrf.org.uk/cost-of-living/jrfs-pre-election-cost-of-living-tracker; https://www.jrf.org.uk/news/nearly-all-large-families-on-low-incomes-trapped-in-hardship-by-cost-of-living-pressures
9. 68% (306,910 households with a child under five)  Data tables: Universal Credit claimants statistics on the two child limit policy, April 2025. Table 08A.
10. https://cpag.org.uk/news/new-costings-scrapping-two-child-limit-far-most-cost-effective-way-cut-child-poverty
11. 59% (267,010 households with at least one earner) Data tables: Universal Credit claimants statistics on the two child limit policy, April 2025 Table 02A.
12. 53% (241,660 households with at least one claimant in conditionality group ‘No work requirements’) Data tables: Universal Credit claimants statistics on the two child limit policy, April 2025 Table 05A.
13. 9% (42,300 couple households with no earners) Data tables: Universal Credit claimants statistics on the two child limit policy, April 2025 Table 02A.
14. 40% (181,950 households receiving any health or disability benefits). 27% (124,560 households receiving Disabled Child Element of UC). Data tables: Universal Credit claimants statistics on the two child limit policy, April 2025 Table 04A.
15. 62% (283,290 households with three children) 88% (398,920 households with three or four children). 4% (18,090 households with six or more children.) Data tables: Universal Credit claimants statistics on the two child limit policy, April 2025 Table 03A.
16. 53% (241,430 single parent households) Data tables: Universal Credit claimants statistics on the two child limit policy, April 2025 Table 02A.
17. 47% (214,260 households with no children born while claimant on UC) Data tables: Universal Credit claimants statistics on the two child limit policy, April 2025 Table 08A.