UK Government Explores Adjustments to Two-Child Benefit Cap to Address Rising Child Poverty

Proposals include exemptions for parents of young children and disabled children, as well as potential increases to benefit payments.

The UK government is considering changes to the two-child benefit cap, including exemptions for parents of children under five and disabled children, as part of a broader child poverty strategy.
The two-child benefit cap, introduced in 2017, restricts child tax credits and Universal Credit to the first two children in most households, and has been criticized as a major driver of rising child poverty.
The Resolution Foundation projects child poverty could reach a record high of 4.6 million children by 2030 without significant policy changes, equating to 33% of all UK children.
Proposals under discussion include increasing the cap to three children, introducing a 'child benefit lock' to ensure annual increases in line with inflation or earnings, and raising Universal Credit payments for families with young children.
Labour MPs and child poverty advocates are urging the government to fully abolish the two-child cap, with estimates suggesting this could lift 500,000 children out of poverty at a cost of £4.5 billion annually.