Two‑child limit officially scrapped as policy change becomes law from April 2026

The Government has officially scrapped the two‑child limit on Universal Credit and child tax credit. The Universal Credit (Removal of Two Child Limit) Act received Royal Assent on 18 March 2026, making the change law. It will take effect from 6 April 2026.

Secretary of State for Work and Pensions, Pat McFadden, said: “Today is an historic day, marking a turning point for 450,000 children across Britain.

“Scrapping the two-child limit is about more than family finances today, it’s about the Britain we’re building for tomorrow.

“Children growing up in poverty are far more likely to leave school without qualifications and end up not in work or education as young adults, and we’re determined to break that cycle once and for all and give every child the best start in life.”

The Government says this change will help lift 450,000 children out of poverty in the final year of this Parliament, the biggest drop in child poverty since records began in the 1990s. There are currently 4.5 million children living in relative poverty after housing costs in the UK, which accounts for about a third of all children.

What has changed?

Since 2017, the two‑child limit meant families could only get Universal Credit or child tax credit for their first two children. Any child born after that did not receive support, even if the family was already struggling. This policy was seen by many as one of the biggest drivers of child poverty in the UK.

Now, from April 2026, families will receive the child element of Universal Credit for every child, not just the first two.

The change will mainly help working families: around 60% of families affected had at least one parent in work. Nearly half were not on Universal Credit when their children were born, their family situation simply changed later.

Will the two‑child limit be backdated?

At this stage, the Government has not announced any plans to backdate payments. Current information only confirms that payments for third and later children will start from April 2026 onwards. Guidance on backdating will be updated if the Government announces more.

Who will benefit?

Families claiming Universal Credit or child tax credit with three or more children, including children born after April 2017 will benefit from this policy change.

Does this affect Child Benefit?

No, scrapping the two child limit will not affect Child Benefit. Child Benefit is separate and was never restricted by the two‑child limit.

How much support will families get?

Each additional child will now be entitled to the full Child Element of Universal Credit. From April 2025, the “child element” of Universal Credit will be worth around p

For families with three or more children who use childcare, the Government is also increasing the maximum childcare costs they can claim.

What else is the government doing to help families?

The Department for Education and other parts of the government are rolling out several measures alongside the end of the two‑child limit, including:

• Free school meals for all children in households on Universal Credit from September 2026 saving families about £500 per child per year.

• Free breakfast clubs for hundreds of thousands more primary school pupils from September 2026.

• Best Start Family Hubs in every local authority in England by 2028, where families can access free classes, events and activities.

• A cap on the cost of school uniforms, limiting schools to three branded items and requiring schools to give parents the option to buy second hand uniforms including ahead of the new school year.