The Department for Work and Pensions (DWP) has confirmed that 436,780 households in Britain are expected to see an increase in their Universal Credit payments following the removal of the two-child limit. These households contain approximately 1,544,900 children, according to data published by the DWP on Wednesday.
Background of the policy change
The two-child limit, which restricted child tax credit and Universal Credit to the first two children in most households, was officially scrapped on April 6. Chancellor Rachel Reeves announced the policy's removal in her November budget, after months of pressure from Labour backbenchers. The change applies to families across Scotland, England, and Wales.
Impact on working households
The DWP data reveals that almost six in 10 (58%) of the affected households are already in work. Universal Credit is a payment designed to help with living costs for people on low incomes, whether they are employed, out of work, or unable to work. The UK Government estimates that removing the two-child limit will lift 450,000 children out of poverty by the end of 2029/30.
Prime Minister Sir Keir Starmer previously stated that the move demonstrates his government is “on the side of the British people.” However, Conservative leader Kemi Badenoch criticized the decision, arguing that it favors benefits claimants over working people.
Timeline for poverty statistics
Because official poverty statistics are published annually with a 12-month lag, the impact of the rule change will not be evident until the figures for 2026/27 are released, likely in spring 2028.
Universal Credit payment rates for 2026/27
The following are the monthly Universal Credit payment rates for 2026/27, unless stated otherwise:
- Single claimants: Under 25: £338.58; 25 or over: £424.90
- Couples: Joint claimants both under 25: £528.34; Joint claimants, one or both 25 or over: £666.97
- Child amounts: First child (born before 6 April 2017): £351.88; First child (born on or after 6 April 2017) or second/subsequent child (with exceptions): £303.94
- Limited capability for work: £158.76
- Limited capability for work and work-related activity: £217.26 (or £429.80 for pre-2026 claimants, severe conditions, or terminal illness)
- Carer amount: £209.34
- Work allowances: Higher work allowance (no housing amount, with dependent children or limited capability): £710.00; Lower work allowance: £427.00
The full list of additional elements and deductions for Universal Credit payments is available on GOV.UK.
