The Child Poverty Bill has received Royal Assent, becoming law and introducing significant changes to support families on benefits and those with working parents. Key measures include the scrapping of the two-child limit, which will allow families on Universal Credit to claim the child element for every eligible child, not just the first two.
This change, combined with the April increase to benefit rates, could see some families receiving up to £300 more per month, or £3,650 annually per child. The Government estimates that up to 1.5 million children across Great Britain could benefit, predominantly those in working families. The change will be implemented from April 6, 2026, and families already claiming Universal Credit will see it applied automatically.
Other measures in the Bill include extending childcare support for working parents and expanding the free school meals programme. The Bill is part of the Government's wider plan to lift 450,000 children out of poverty before the final year of this Parliament. This follows figures showing 2.6 million children in the UK lack sufficient food at home and over 172,000 have no permanent home.
Secretary of State for Work and Pensions, Pat McFadden, said: "Today is an historic day, marking a turning point for 450,000 children across Britain. Scrapping the two-child limit is about more than family finances today, it's about the Britain we're building for tomorrow." The two-child limit was originally introduced after the 2015 general election to make welfare savings and ensure households on benefits faced the same financial choices as working households.
It is estimated that in April last year, around 483,000 families were affected by the two-child limit, with 300,000 children living in relative poverty as a result. The changes are expected to have positive ripple effects on health services, schooling, and employment. Abigail Wood, CEO of Gingerbread, said: "Gingerbread has campaigned long and hard for the two-child limit to be scrapped. It pushed children into poverty and unfairly punished single parents."
