60,000 Families Face Impact as Second Benefit Limit Follows Two-Child Cap Removal

Jordan Hartwell

Published: February 2, 2026 8:45 PM ET

60,000 Families Face Impact as Second Benefit Limit Follows Two-Child Cap Removal

Recent assessments have indicated that around 60,000 families will not fully benefit from the removal of the two-child cap on benefits. While the government expects that lifting this restriction will positively impact over 570,000 low-income households by 2031, an annual household benefit cap will affect many eligible families. This cap limits annual benefit claims to £22,000, or a bit higher in London.

Impact on Families Following Two-Child Cap Removal

The government’s analysis suggests that lifting the two-child limit will help over two million children, as it aims to relieve financial pressures on larger families. However, 60,000 families will see some or all of their benefits reduced due to hitting an overall household benefit cap. Specifically, 50,000 of these households will see no financial gain, while another 10,000 will have partial benefits affected.

Objectives and Future Prospects

In December, government officials announced no immediate plans to modify or eliminate the household benefit cap. Nevertheless, the objective remains clear: alleviate child poverty. Ministers project that this policy change will lift approximately 450,000 children out of relative poverty by 2039.

Legislative Changes and Political Context

The legislation to abolish the two-child cap is gaining traction in Parliament. A second reading is scheduled, which brings the bill closer to enactment. The decision to repeal this limit was a key commitment of Labour leader Sir Keir Starmer and Chancellor Rachel Reeves. It aims to address increasing child poverty levels, particularly in larger families since 2017.

Expert Opinions on Child Poverty

Child poverty experts have identified the two-child limit as a major contributor to rising figures.
Many advocate for comprehensive measures to ensure all families benefit from policy changes.

Dan Paskins from Save the Children highlighted the importance of the proposed legislation in alleviating child poverty in the UK. He emphasized that while the bill is a step forward, it is critical for all families to experience the financial improvements intended by these changes.

Political Opposition

The Conservative Party and Reform UK are expected to oppose the bill during its second reading. However, its passage to subsequent stages appears likely despite political resistance. The government has articulated an ambitious Child Poverty Strategy, intending to lift 550,000 children out of poverty by 2030, marking an unprecedented reduction in a single parliamentary term.