Two-child benefit cap axed – what it means for you

As part of the recent Budget, the government announced that the two-child benefit cap will be scrapped. From April 2026, families will be able to claim the child element of Universal Credit for all their children, no matter how many they have.

It's estimated that around 4.5 million children, nearly 1 in 3, live in poverty in the UK. This change is designed to tackle child poverty and give every child the best start in life.

What does this mean for you?

Right now, if you have more than two children, you can only get extra Universal Credit payments or tax credits for your first two. That rule will go away in April 2026. So, if you have three or more children, you’ll get extra support for each child. This could mean more money in your pocket every month.

How many children will benefit?

The government says that 450,000 fewer children will be in poverty by 2030 because of this change. Around 2 million children will live in households that’ll see an income boost as a result. That’s a big step towards helping families who are struggling.

Why was there a cap in the first place?

The two-child limit was brought in back in April 2017. It was meant to cut costs and encourage parents to think about family size.

But many charities and campaigners said it pushed families deeper into poverty. Now, the government is reversing that decision.

What happens next?

The full details will be in the government’s new Child Poverty Strategy, which is coming soon. For now, the key thing to remember is that from April 2026, you’ll be able to claim for all your children under Universal Credit. You can check if you're eligible for Universal Credit through the government website.