Overview
- Government insiders and multiple outlets report the chancellor is set to announce the end of the two‑child limit at Wednesday’s Budget, though the decision is not yet legislated.
- Ending the cap would restore Universal Credit and tax credit support for third and subsequent children born after April 6, 2017, reversing a flagship Conservative policy.
- Analysts estimate scrapping the policy could lift roughly 350,000 children out of poverty, with cost projections ranging from about £2 billion (CPAG) to £3.5 billion (Resolution Foundation) by 2029/30.
- The cap has affected around 1.6 million children nationally, with pronounced impacts in areas such as Merseyside—where about 40,000 children in UC households are affected—and in parts of London, northwest England and the West Midlands.
- Debate continues over work incentives, with The Times highlighting scenarios where additional payments for larger families could exceed full‑time minimum‑wage take‑home pay.