Two-Child Limit Policy Pushes Children into Poverty

Strategic Insights -

As the UK government prepares to unveil its child poverty strategy this autumn, charities and experts are warning that the two-child limit policy is having a devastating impact on families across the country. The policy, which restricts Universal Credit and Child Tax Credit benefits to households with three or more children born on or after 6 April 2017, is pushing an increasing number of children and families into poverty. According to the Department for Work and Pensions, nearly 1.7 million children in Great Britain were living in households affected by the two-child limit in April, an increase from 1.4 million the previous year.

Key Takeaways:

  • The two-child limit policy excludes most households with a third or subsequent child born on or after 6 April 2017 from claiming Universal Credit, affecting 470,000 households across Great Britain.
  • In Doncaster Central, 990 households with 3,420 children were impacted by the policy, with around 20 per 1,000 households affected, above the 18 per 1,000 average rate across England and Wales.
  • Most households affected by the policy have at least one claimant earning, with 59% of households in Great Britain and 57% in Doncaster Central in work in April.
  • The two-child limit is pushing children into poverty, with Child Poverty Action Group chief executive Alison Garnham warning that the policy "cuts them off from opportunity".
  • Julia Pitman, head of policy and research at Action for Children, called on the government to abandon the two-child limit and benefit cap, which she warned is "pushing these families even deeper into poverty".
  • Around 38,200 households in Great Britain were hit by both the two-child limit and the benefit cap in April, with 141,290 children living in these households.

Statistics:

  • Nearly 1.7 million children in Great Britain were living in households affected by the two-child limit policy in April.
  • 470,000 households across Great Britain were impacted by the policy.
  • In Doncaster Central, 990 households with 3,420 children were affected by the policy.
  • Around 20 per 1,000 households in Doncaster Central were impacted by the policy, above the 18 per 1,000 average rate across England and Wales.
  • 59% of households affected by the policy in Great Britain and 57% in Doncaster Central were in work in April.
  • 141,290 children were living in households hit by both the two-child limit and the benefit cap in April.
  • 38,200 households in Great Britain were hit by both the two-child limit and the benefit cap in April.

Sources:

  • "Two-child limit policy: 1.7 million children in poverty, charities warn" by Stephanie Bateman
  • Department for Work and Pensions
  • Child Poverty Action Group
  • Action for Children