UK Two Child Benefit Cap: Latest Updates & Calls to Scrap the Policy

The UK’s Two-Child Benefit Cap is a means-tested government policy that limits the amount of financial help families receive via the Universal Credit (UC) or Child Tax Credit (CTC) for more than two children.

This policy was introduced in April 2017 but has attracted increasing criticism over its effects on families with low incomes, with persistent calls for its abolition.

Here, we discuss the latest updates, reforms and efforts at total repeal.

UK Two Child Benefit Cap Overview

As of 6th April 2017, families are not permitted to claim additional benefits for any other child born after that date.

Although this measure purports to reduce costs associated with welfare payments, opponents claim it primarily impacts poor families, thus causing many kids to be thrown into poverty and reliance on social services.

Key Features of the Policy:

• Applies to UC and CTC: Limits benefits to the first two children in the family.
• Exceptions: There exist a few exemptions granted, such as multiple births or kids born out of molestation.
• Age Limit: Benefits continue until the kid reaches age sixteen, or up to twenty years old if he/she is receiving accepted learning or training.

After its initiation, the policy has faced serious enmity from organizations that deal with children’s issues, like orphanages, and other lobby groups arguing that it worsens child poverty.

Also Read: How to Get £600 Per Month for Pensioners from DWP

Latest Call to Scrap the Two Child Benefit Cap

In another turn of events, the Scottish National Party (SNP) wants the removal of the two-child limit on benefits as it was contained in modifications made to King’s Speech.

The role of said policy in pushing thousands of families into poverty was highlighted by SNP leader Stephen Flynn, who called upon the UK government to reconsider its position. 

Impact of the Policy:

• This policy directly affects around 1.6 million children.
• The cap has contributed to 4 million parents living in poverty today—an increase of 700,000 since 2010, according to reports.

The SNP is likely to find support in removing the cap from other parties like Plaid Cymru as child poverty gains attention across UK . 

Government Response and Child Poverty Task Force

However, despite increasing pressure, the UK government continues not to take off the policy yet but under new leadership, they announced a Task Force for Child Poverty, which aims at tackling hitherto existing root causes of poverty amongst children.

Key Figures:

• Keir Starmer, the Prime Minister, has acknowledged that youth in the UK are trailing behind, as many find it very difficult to deal with abject poverty. 
• As joint leaders of this task force, Work and Pensions Secretary Liz Kendall and Education Secretary Bridget Phillipson are on board. 

The task force will work with specialists inside and outside government on all issues affecting children’s well-being, namely: home income, job creation, housing problems related to children’s health problems and education matters. 

Long-Term Goals:

• This will raise 500,000 children out of poverty through tackling inequalities made worse by the two-child limit policy. 
• Similarly, Liz Kendall reiterated that time is of essence in addressing economic deprivation, which currently afflicts millions of youngsters living in Britain, hampering their potential from getting excessively wealthy while future generations have not had these expenses placed upon them or realizing their aspirations even after toiling without resting throughout their lives.

Financial Impact of Scrapping the Two Child Cap

Scrapping the two-child benefit cap could significantly benefit affected families:

• Annual Benefit Loss: Families with three or more children born after April 2017 lose out on up to £3,500 per year.
• Poverty Reduction: Removing the cap could lift hundreds of thousands of children out of poverty, providing more financial stability to struggling families.

The Department for Work and Pensions (DWP) is currently evaluating the broader impact of the policy on families and children, though no concrete steps have yet been announced.

Latest News and Updates on the Two Child Benefit Cap

Recent statements by Prime Minister Starmer and the new Child Poverty Task Force signal that the government is taking a closer look at the issue of child poverty.

Key Updates:

• The SNP has increased its pressure on the government to terminate this policy, claiming that it is not only unjust but also detrimental to children.
• This measure of controlling poverty has been defended by the government as a necessary cost-cutting strategy; however, opposition parties, charities, and child protection organizations are now scrutinizing it more closely than before.

Currently, under the policy, children from families with more than two are likely to experience financial struggles, leading to increased disparity.

Also Read: How to Claim £780 DWP Benefits Extra Payment in September 2024

Potential Effects of Scrapping the Two Child Benefit Cap

Removal of the two-child benefit limit would bring about various benefits:

1. Reduced Child Poverty:

• This action would provide direct financial assistance for 1.6 million kids, thereby helping their parents meet essential needs such as food, housing and education.

2. Improved Child Welfare:

• The wellbeing of children may be greatly enhanced by more financial assistance, since this would allow them to access more health care, better nutrition and so on.

3. Increased Economic Stability for Families:

• This would lead to increased financial stability for families and less dependence on food banks and other forms of emergency aid.

4. Positive Impact on Society:

• Lifting the cap can help in curbing growing societal inequalities, hence providing chances for low-income children to thrive and succeed in the future.

A huge debate has arisen concerning the UK Two-Child Benefit Cap regarding how it affects poor families and what its effect is on increasing child poverty.

There are those critics who say that the policy is unfairly punishing families because it affects about 1.6 million children.

The SNP and others in political positions are urging the elimination of the cap, while the UK government has not yet taken any concrete steps; however, the Child Poverty Task Force, which has just been set up, appears to suggest that change might soon come.

At present, it is still in the hope of families suffering from the two-child limit that effective changes will address their hardships and give their offspring an improved tomorrow.

FAQs