Starting from 6 April, the Department for Work and Pensions (DWP) will remove the controversial two-child benefit cap, enabling low-income families to claim universal credit for all their children. This change is expected to provide a £300 monthly uplift to families previously restricted by the cap, bringing significant financial relief to cash-strapped households.
The Child Poverty Action Group (CPAG) estimates that the two-child policy pushed 109 children into poverty each day, as affected families struggled to cover basic living costs. Alison Garnham, CPAG’s chief executive, highlighted the serious consequences of child poverty, including poorer health and education outcomes, reduced life expectancy, and lower earning potential in adulthood. She described the removal of the cap as a crucial step toward improving opportunities for children.
One mother of three shared her struggles with CPAG, revealing how quickly school-related expenses pushed her into debt just weeks after the new term began. She expressed concern that any child excluded from school activities due to financial constraints would suffer emotionally and socially. “Every month I do our budget to the last penny,” she stated.
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Citizens Advice echoed these concerns, emphasizing the far-reaching impact the policy had on families. David Mendes da Costa, head of policy at Citizens Advice, said lifting the limit means families can better afford essentials like food and school uniforms, helping them avoid falling into debt.
Dan Paskins, executive director of UK impact at Save the Children UK, underscored the broader significance of this policy change. He noted that for nearly a decade, the two-child limit effectively put a cap on childhood experiences for larger families, restricting access to opportunities and resources. “Now, incomes have a better chance of reflecting the real cost of raising a family,” Paskins said, adding that the change could improve children’s health, educational attainment, and future job prospects.
This policy reversal signals a meaningful shift aimed at reducing child poverty and supporting vulnerable families across the UK.