The Child Poverty Action Group (CPAG) has raised urgent concerns about the devastating effects of the Department for Work and Pensions (DWP) two-child limit policy. But crucially, the group has also shown that by not cancelling the policy, the Labour Party government has already thrown a further 30,000 children into poverty since it took power in July 2024
The two-child limit: a ruinous policy
The two-child limit, which came into effect on April 6, 2017, restricts households from claiming child tax credits or Universal Credit for more than two children, including those born after the policy’s introduction.
CPAG’s recent research outlines a disconcerting trend, indicating that 350,000 children could be lifted out of poverty immediately if the limit were to be abolished, at a projected cost of £2 billion. Furthermore, the study highlights that the policy is fostering an increase in family hardship, with an estimated 109 additional children being pulled into poverty daily as a direct consequence.
Another study put the figure nearer 600,000.
This policy does not operate in a vacuum; a so-called “rape clause” creates exemptions for children born as a result of non-consensual conception, a feature that has drawn considerable criticism and controversy since it was rolled into the policy. Critics argue that such provisions do little to alleviate the suffering caused by the overarching restrictions of the two-child limit.
The implications of the two-child limit are far-reaching, affecting families across all regions of the UK. The policy will continue to impact an increasing number of families until 2035 when the first children born under its restrictions will reach adulthood. Yet Labour has maintained it – even expelling MPs who voted against keeping it.
Meanwhile, the Scottish government has vowed to bring an end to the two-child limit by April 2026, aiming to mitigate its adverse effects on families in Scotland.
Labour: digging its heels in
Despite the overwhelming evidence presented by CPAG, the Labour government has opted to retain the controversial policy It was initially introduced by former Tory chancellor George Osborne.
In 2020, Starmer had previously called for its abolition, labelling it a critical gesture towards combatting child poverty. However, more recently, he has described the scrapping of the two-child cap as insufficient alone to resolve the broader issue of child poverty, suggesting a lack of urgency in addressing the immediate needs of families affected by this policy.
CPAG’s chief executive Alison Garnham said:
The government’s child poverty strategy will fall flat on its face unless it scraps the two-child limit. Every day, the policy forces families to go hungry and damages the life chances of children up and down the country.
She asserts that while reducing child poverty requires multi-faceted strategies, abolishing the two-child limit is a necessary first step.
As the Labour government gears up to release its long-awaited child poverty strategy this June, pressure from charity groups and families continues to mount.
It could be scrapped
The End Child Poverty Coalition has expressed doubts about the effectiveness of the forthcoming plan unless it actively dismantles the two-child limit. Reports indicate potential shifts in the policy, with discussions about a change to a three-child limit appearing on the table, but notably, this has yet to be substantiated with firm commitments or timelines.
Research conducted by CPAG has revealed the stark financial reality behind potential alternatives to altering the two-child limit, indicating that addressing the same number of children at risk would be considerably more expensive.
To completely offset the impacts of the policy, the child element of Universal Credit would need to be increased by £17 per week, costing £3 billion. Alternatively, raising the standard allowance by £25 a week would escalate costs to £8 billion.
The issue remains pressing, as campaigners insist that the two-child limit must be abolished outright. They caution that allowing exemptions to some families could result in a fragmented approach that would keep vulnerable families trapped in poverty, struggling to find a way out.
Labour: everything it says rings hollow
In the government’s response, a spokesperson claimed:
No-one should be living in poverty, and we know that the best route out of poverty for struggling families is well-paid, secure work.
This statement, however, rings hollow for many families affected by stringent welfare policies. It underscores the disconnect between Labour rhetoric and the harsh realities faced by the nation’s most vulnerable children.
As the crisis persists, the two-child limit continues to be a source of pain, hardship, and increasing deprivation.
Featured image via the Canary
