The UK Government has confirmed that the controversial “two-child benefit cap” will be abolished. From April 2026, families receiving Universal Credit (and related child-benefit payments) will once again be eligible for support for all their children not just the first two.
What was the two-child limit?
The “two-child limit” restricted how many children families could claim the “child element” of benefits for under Universal Credit or tax credits: support was generally limited to the first two children only. For a third or subsequent child born on/after 6 April 2017, families were not eligible for the extra payment -a policy widely criticised for penalising larger families.
The change becomes active in April 2026. From that date, eligible families on Universal Credit will be able to claim the “child element” for every child, regardless of how many children they have.
Families with three or more children, especially those where third or later children were born on or after April 2017 are the main beneficiaries. The government’s own analysis estimates this will lead to around 450,000 fewer children in relative low income (after housing costs) by 2029/30 compared with if the limit had stayed in place.
Across the UK, this could mean a financial boost for many families helping with essential living costs such as food, heating, clothing, school supplies, and other child-related expenses.
The two-child limit was widely criticised by charities and child-poverty campaigners as unfair and harmful effectively denying support to children simply because they were born later.
Removing the cap is a major step towards tackling child poverty and ensuring that all children get support and a fair chance, regardless of how many siblings they have.
For charities like Welcare this change is an opportunity to raise awareness, and support families in claiming what they’re entitled to from April 2026 and help reduce hardship at a critical time of high living costs.
