UK Government Considers Changes to Two-Child Benefit Cap Policy

Proposals aim to mitigate the cap’s impact on child poverty, but full abolition remains unlikely due to cost concerns.

The two-child benefit cap, introduced in 2017, limits financial support for families with more than two children, affecting millions of households across the UK.
Potential reforms under discussion include exempting parents of children under five, parents of disabled children, or working parents from the cap's restrictions.
Campaigners argue that scrapping the cap entirely could lift 250,000 children out of poverty, but the estimated cost ranges from £1.7bn to £3.6bn annually, making it politically challenging.
Other proposals being explored include increasing child benefit payments for young children or introducing a 'child benefit lock' to ensure payments rise annually with inflation or earnings.
Labour MPs and advocacy groups are pressuring the government to take stronger action on child poverty, with some warning that current measures are insufficient to address the growing crisis.