The two-child benefit cap restricts Universal Credit and Tax Credits payments for any third or subsequent child born after April 6, 2017
The two-child benefit cap is being axed next month, with over 500,000 families expected to be £5,310 better off a year as a result.
The two-child benefit cap restricts Universal Credit and Tax Credits payments for any third or subsequent child born after April 6, 2017.
The policy was introduced by the Conservatives in April 2017 but in her Budget last autumn, Labour Chancellor Rachel Reeves announced it would be abolished from April 2026. The exact date the cap will be removed is April 6, 2026.
The Chancellor told the Commons during her Budget statement: “We on this side of the House do not believe that the solution to a broken welfare system is to punish the most vulnerable children.”
If your first child was born on or after April 6, 2017, or you have a second child, the extra amount you get from Universal Credit is £292.81 a month per child.
This is rising to £303.94 a month from April 2026. Universal Credit claimants currently receive an extra £339 a month if their first child was born before April 6, 2017, then £292.81 a month for a second child.
These extra payments last until August 31 after the child turns 16, or until the child is aged 19 if they are continuing in full-time education or approved training.
A total of 1,665,540 children were impacted by the two-child benefit cap in April 2025, according to the Department for Work and Pensions (DWP).
The Institute of Fiscal Studies (IFS) estimates affected families could have received an average of £4,400 in benefits a year if the cap had never been introduced.
The two-child benefit cap is separate to the benefit cap, which is a limit on the total amount of benefit you can get.
Chris Sherwood, CEO at the NSPCC, said: “The Chancellor finally scrapping the two‑child limit is a welcome move that will lift hundreds of thousands of children out of poverty.
“Through Childline, we hear about children and young people not being able to afford food or school essentials, worrying about judgement from others and agonising over the wider impact on their family, all of which can have a devastating effect on their physical and mental wellbeing.”
