Budget 2025: Two child benefit cap scrapped – here’s what that will mean for parents
Huge cheers in Commons as two-child benefit cap scrapped
- The two-child benefits limit will be abolished from April 2026, a decision confirmed by the Office for Budget Responsibility (OBR).
- This policy change is projected to cost £3 billion by 2029/30 and is expected to reduce child poverty by 450,000 by the same year.
- Chancellor Rachel Reeves told the Commons: “We on this side of the House do not believe that the solution to a broken welfare system is to punish the most vulnerable children.”
- The controversial limit, introduced by the Conservatives in 2015 and implemented in 2017, restricted child tax credit and universal credit to the first two children.
- Organisations such as Unicef UK and the Trussell Trust have welcomed the move, calling it a significant step to address record levels of child poverty in the UK.