UK Abolishes Two-Child Benefit Cap

The UK government has abolished the two-child benefit cap, effective April 6, allowing families claiming Universal Credit to receive support for all children regardless of family size. The policy change, announced by Chancellor Rachel Reeves in her November budget, is expected to benefit around 480,000 households with three or more children, providing an average annual increase of £4,100 in child elements of Universal Credit.

Introduced by the Conservative government in 2017 under then-Chancellor George Osborne, the cap limited payments for third and subsequent children born after April 6, 2017, aiming to encourage family planning among benefit recipients. It affected an estimated 1.7 million children in poverty, according to the Child Poverty Action Group. The Labour administration reversed the measure following internal party pressure and advocacy from charities, citing its role in perpetuating child poverty amid rising living costs.

Prime Minister Keir Starmer described the move as a key step in supporting families during global economic pressures, including the ongoing conflict in the Middle East that has driven up energy prices. "No matter the global uncertainty, my...