Global Edition
Global Edition
UK Edition
EU Edition
US Edition

Understand the story, not the spin.

Markets

UK Parliament Advances Two-Child Benefit Cap Removal

Published 4 February 2026

British lawmakers voted overwhelmingly on Tuesday to advance legislation scrapping the two-child benefit cap, a policy that has restricted child payments under Universal Credit since 2017. The Universal Credit Removal of Two Child Limit Bill passed its second reading in the House of Commons by 458 votes to 104, a majority of 354, clearing the first major hurdle toward abolition.

The measure, introduced by the Labour government, would allow families to claim the child element of Universal Credit for all children, regardless of family size. Currently, payments are limited to the first two children for most households, affecting an estimated 469,780 families across Great Britain as of April 2025, according to Department for Work and Pensions figures. These households include 1.7 million children, with 59 percent having at least one working adult.

No Labour members voted against the bill, marking a unified front for the government. All Conservative MPs either opposed it or abstained, while Liberal Democrats backed the change. Among Reform UK lawmakers, four voted against removal of the cap, and leader Nigel Farage did not record a vote. However, recent Reform recruits Robert Jenrick...

Now playing
0:00 / 0:00