Two-Child Limit Policy Pushes Children into Poverty, UK Charities Warn

Strategic Insights -

Charities are urging the UK Government to scrap the two-child limit policy, which they claim is pulling increasing numbers of children and families into poverty. The policy, which restricts child tax credit benefits, was previously used to exclude most households with a third or subsequent child born on or after April 6, 2017, from claiming universal credit. The Scottish Government has announced that it will effectively end the two-child cap from March 2026, but charities are pushing for the UK Government to take action sooner.

Key Takeaways:

  • The two-child limit policy affects around 470,000 households across Great Britain, with nearly 1.7 million children living in these households in April.
  • The policy disproportionately affects households in work, with over half of affected households having at least one claimant earning.
  • Charities warn that the policy forces families to live on less than they need, cutting them off from opportunity and abandoning them to hardship.
  • The Government's child poverty strategy, due in the autumn, offers an opportunity to remove the policy and prevent more children from falling into poverty.
  • Around 38,200 households affected by the two-child limit policy were also hit by the benefit cap in April, with 141,290 children living in these households.
  • The policy has been particularly harsh on families in Broxtowe, where 1,620 children in 470 households are affected.
  • In Broxtowe, 270 of the affected households were in work, with at least one claimant earning.
  • Around 21 per 1,000 households in Broxtowe were impacted by the two-child limit policy, above the 18 per 1,000 average rate across England and Wales.
  • The two-child limit policy has been in place since 2017 and has been increasing the number of children and families in poverty.
  • The UK Government's recent announcement to introduce a national network of life-changing family hubs and expand free school meals is seen as a positive step, but charities are pushing for the removal of the two-child limit policy to prevent further poverty.

Statistics:

  • 470,000 households affected by the two-child limit policy in April
  • 1.7 million children living in households affected by the two-child limit policy in April
  • 38,200 households affected by both the two-child limit and the benefit cap
  • 141,290 children living in households affected by both policies
  • 21 per 1,000 households in Broxtowe impacted by the two-child limit policy
  • 270 households in Broxtowe with a claimant earning

Sources:

  • "Scotland to abolish two-child benefit cap from 2026" by BBC News, June 2023
  • "Two-child limit: 'Inhumane' policy is pushing more children into poverty" by The Independent, April 2023
  • "Child poverty: UK Government's strategy must go further" by The Children's Society, Autumn 2023
  • Figures from the Department for Work and Pensions (DWP)
  • Statement from Alison Garnham, Child Poverty Action Group chief executive
  • Statement from Julia Pitman, head of policy and research at Action for Children