‘Welcome’ end to two-child benefit cap that ‘pushed many families into poverty’

 “This policy has directly pushed many families into poverty and created anxiety for working families who often have no choice but to claim Universal Credit as a result of common, but unpredictable, life events, such as job loss or the onset of disability,” said Bishop Richard Moth, chair of the department for social justice for the Catholic Bishops’ Conference of England and Wales.

The Chancellor of the Exchequer Rachel Reeves today announced that the two-child cap on benefits, whereby families can only claim universal credit or tax credits for their first two children, will be removed in the new budget from April 2026. This decision has been welcomed by Catholic charities, which have campaigned for an end to the policy since it was first instated by Conservative Chancellor George Osborne in 2017.

Raymond Friel, chief executive officer of Caritas Social Action Network, said, “We are delighted that our advocacy efforts, as well as the voices of other Christian groups and charities, has had an impact on the Government’s priorities. This decision will lift hundreds of thousands of children out of poverty and allow then to lead more dignified lives.”

Bishop Richard Moth, chair of the department for social justice for the Catholic Bishops’ Conference of England and Wales, also welcomed the government’s decision to scrap the two-child cap on Universal Credit payments. 

“Large families are a blessing rather than a burden,” he said. “Since 2017, this policy has directly pushed many families into poverty and created anxiety for working families who often have no choice but to claim Universal Credit as a result of common, but unpredictable, life events, such as job loss or the onset of disability.”

Kate Nightingale, chief executive officer of the St Vincent de Paul Society, which supports people facing poverty and hardship, said, “The SVP warmly welcomes today’s announcement that the Government will scrap the two-child benefit cap from next April. This long-overdue change will lift countless children out of poverty and prevent many more being pushed into hardship in future. Ending the cap will bring dignity, security and hope to families across the country. Every child should have the chance to grow up free from poverty.”

A survey carried out by the SVP earlier this year found that families with children are most at risk of experiencing poverty, even when one or both parents work, with many having to choose between food, childcare, and heating their homes, relying on food banks and sometimes facing risks of eviction and homelessness. The report singled out the two-child benefit cap as a significant driver of child poverty.

Caritas Westminster also bore witness to the suffering caused by the cap: “Every day we see the hardship this unjust policy causes through the 300 parish and school food projects in our diocese, which supported more than 11,000 people last year. Ending the two-child limit, a long overdue step that will lift 350,000 children out of poverty, will bring real relief to families living in the most deprived parts of North London and Hertfordshire.”

Richard Harries, director of Caritas Westminster, added, “It should never have taken this long to recognise the injustice of a policy that punishes parents for growing their families and children for decisions not their own. It is regrettable that the change will not take effect until next April, leaving so many to face yet another hard winter unsupported.”

Caritas Salford also said that the decision would make “a significant difference” to the families they work with across Greater Manchester and Lancashire, where more than one in three children live in poverty. They said, “In recent months, we have met with a number of local MPs to discuss this issue, and we are grateful that many took action to advocate for change on our behalf, including writing to Ministers and tabling Parliamentary Questions. This has meant that the experiences of people we support have been represented to the Government as they considered the way forward.” 

Mark Russell, chief executive officer of The Children’s Society, an Anglican charity that strives to improve the lives of children, said, “Children cannot thrive if they are hungry or living in cold damp homes. Scrapping the two-child limit is a watershed moment for children. It will pull thousands of families back from the brink. It shows that even in tough economic times government can choose to back children with bold, life changing action. I warmly welcome this decisive leadership from the Chancellor and Prime Minister.”

Chief executive of Child Poverty Action Group Alison Garnham agreed, “Scrapping the two-child limit will be transformational for children. This is a much-needed fresh start in our country’s efforts to eradicate child poverty and while there is more to do it gives us strong foundations to build on. Every child deserves the best start in life and with today’s decision government has done the right thing.”

However, the charities also warned that the decision will not in itself be enough to end child poverty in the UK and urged the Government to take further action.

Stewart McCulloch, chief executive officer at Christians Against Poverty, said, “Ending the two-child limit is a move towards helping break the cycle of disadvantage for the poorest families, but is only one step towards the systemic changes required to truly tackle poverty. Without the removal of the overall cap on the payment of benefits for families, children may still face poverty.

“Poverty steals potential and almost half of our clients simply don’t have enough income to even pay for their food, heating and other basic needs. We know from our own work that children growing up in debt-burdened households face anxiety, exclusion, and reduced life chances. CAP waits to see what more will come in the following months and years to support people who are struggling on low incomes.” 

Mark Choonara, chief executive officer of Daughters of Charity Services, which works with those experiencing poverty and exclusion, agreed, “We believe that much more can still be done to alleviate the suffering of vulnerable families up and down the country. We continue to call on the Government to extend Free School Meals to all primary-age children across the country. Whilst we welcome the increase in the Minimum Wage, we are concerned about the freezes on income tax thresholds and that the tax burden is due to be at an all-time high from April next year. This means more families with children will be paying even more tax, and increase cost-of-living pressures.

“We urge the Chancellor to extend Universal Free School Meals and prioritise the most vulnerable in society. We will continue to call on the Government to address the suffering of people in the asylum system, as well as more funding to tackle homelessness and to ensure that the adult social care system has the resource it needs to care for the people that need it.”

Bishop Moth also said, “We must consider how, in a variety of ways, we can support the flourishing of families which are necessary to secure the future of our society. There is still much work to be done to address the scourge of child poverty.

“Over 90 per cent of our schools have reported encountering families that are struggling with the cost of living, and 70 per cent have noted worsening conditions. Our ongoing response to child poverty should be urgent and multifaceted, considering a range of solutions.”

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