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Government Scraps Two-Child Benefit Cap After Budget Decision

The change is projected to reduce child poverty by about 450,000 by 2029/30, the fiscal watchdog says.

Overview

  • Chancellor Rachel Reeves confirmed the policy will be lifted from April, ending the 2017 limit on Universal Credit and Child Tax Credit support beyond a second child.
  • About 470,000 families have been affected by the cap to date, covering roughly 1.7 million children, with official data showing most of those households were in work.
  • New DWP breakdowns highlight local impact, including 3,050 families in Stoke-on-Trent and 12,070 children in northern Lincolnshire living in affected households.
  • Charities and campaigners welcomed the move, while Conservatives branded it a "Budget for Benefits Street" and signalled they would restore the cap.
  • Media analysis reports larger shares of beneficiaries in some high‑migration areas, the government says eligibility rules tied to immigration status are unchanged, and the annual cost is estimated at about £3 billion by 2029/30 with typical gains of around £3,455 per extra child.