Summary
The two-child benefit cap is a rule that limits welfare benefits to families with more than two children. The policy was introduced in 2017 and affects families receiving universal credit or tax credits, not child benefits. Chancellor Rachel Reeves has suggested possible changes in this system during the upcoming Budget.
Key Facts
- The two-child benefit cap limits financial support for families who have more than two children.
- This policy applies to children born after April 6, 2017.
- About 1.6 million children live in families affected by this cap.
- The cap saves the UK Treasury approximately £3.6 billion a year.
- Universal credit and tax credits are the affected benefits, not child benefit.
- There are exceptions, like twins, or children born from rape or coercive relationships, who can still receive benefits.
- More than 100 charities and some Labour MPs have called for the cap to be removed to help reduce child poverty.
- The chancellor hinted at possible Budget changes to the cap, including partial payments or adjustments to reflect family size.
