UK scrapes two‑child limit on Universal Credit, boosting benefits for 400,000 households

The Department for Work and Pensions has ended the two‑child limit on Universal Credit, a rule that previously capped child‑related benefits to the first two children. The change is expected to raise payments for around 436,000 households across England, Scotland and Wales, benefiting roughly 1.5 million children, and could lift about 450,000 children out of poverty by 2029/30.

Labour officials, including future Prime Minister Andy Burnham, have hailed the policy shift as a move to protect vulnerable families, while Conservative leaders argue it favours claimants over workers. The removal follows a budget announcement by Chancellor Rachel Reeves and reflects pressure from backbenchers. Impact assessments will appear in poverty statistics for 2026/27, with the most affected areas identified in Greater Manchester constituencies such as Blackley and Middleton South and Salford.