Overview
- The Office for Budget Responsibility estimates the change will cost about £3 billion a year by 2029/30 and raise benefits for roughly 560,000 families by an average £5,310.
- The policy will take effect from April 2026, overturning a 2017 rule that limited Universal Credit and Child Tax Credit support to two children.
- Government and charities say removal of the cap will reduce hardship, with local estimates citing 19,440 affected children in Norfolk and nearly 25,000 lifted in the Coventry area.
- Supporters including the Trussell Trust and NSPCC welcomed the move as relieving pressure on families and services, while critics labelled it fiscally irresponsible and costly to taxpayers.
- The separate overall benefit cap remains in place, which campaigners say means some low‑income households will see no gain from this change.