Chancellor Rachel Reeves has announced the abolition of the controversial two-child benefit limit, a move hailed by charities as providing 'real hope for families across the country.' This landmark decision is projected to lift an estimated 350,000 children out of poverty nationwide.
What is the Two-Child Limit and Who Did It Affect?
The two-child benefit limit, introduced by the Conservative government in 2017, restricted parents from claiming Child Tax Credit or Universal Credit for any third or subsequent child. Official figures from the Department for Work and Pensions reveal that a record high of 469,780 households across Great Britain were affected by the policy in the year to April 2025.
Contrary to some perceptions, the majority of these households, 59%, were in work. In total, these families were home to 1.7 million children, highlighting the policy's wide-reaching impact on working and non-working families alike.
London's Children: The Capital's Heavy Burden
The lifting of the cap will have a profound effect in London, where more than 260,000 children in Universal Credit households are currently impacted. The distribution of this impact is not even, with some parliamentary constituencies bearing a significantly heavier burden.
The constituency of Hackney North and Stoke Newington, represented by Diane Abbott, has the highest proportion of affected children in the entire country. Here, 10,900 children live under the two-child limit, which equates to a staggering 42% of all children in the area.
Other London constituencies with high rates include:
- Tottenham (David Lammy's constituency): 7,890 children affected (29% of all children).
- Bethnal Green and Stepney: 6,790 children affected (29% of all children).
- Brent East: 7,250 children affected (27% of all children).
A New Chapter for Families
Announcing the policy, which is estimated to cost £3 billion a year by 2029-30, Chancellor Rachel Reeves stated that her party did "not believe that the solution to a broken welfare system is to punish the most vulnerable children."
Joseph Howes, CEO of Buttle UK and Chair of the End Child Poverty Coalition, commended the decision. "We commend The Chancellor on her decision to scrap the two-child limit, which will lift hundreds of thousands of children out of poverty," he said. "This provides real hope for families across the country. More children will grow up with the security, opportunity, and support they deserve."
This significant shift in policy marks a pivotal moment for family welfare in the UK, promising to alter the futures of hundreds of thousands of children by providing them with greater financial security and opportunity.
