MPs Vote to Scrap Two-Child Benefit Limit in Major Welfare Reform
MPs Vote to Scrap Two-Child Benefit Limit

Major Parliamentary Vote Moves Two-Child Limit Closer to Abolition

The controversial two-child limit on welfare benefits has taken a significant step toward being abolished after legislation cleared its first parliamentary stage with overwhelming support from MPs. The policy, which currently restricts child tax credit and Universal Credit payments to the first two children in most households, has been a contentious element of the UK's welfare system since its introduction in 2017.

Landmark Vote in the House of Commons

In a decisive vote on Tuesday, MPs supported the Universal Credit (Removal of Two Child Limit) Bill by 458 votes to 104, representing a substantial majority of 354. This crucial second reading approval means the legislation will now undergo further detailed scrutiny by both MPs and peers before potentially becoming law. The government has indicated its intention to implement the change from April, marking a significant shift in social policy.

Political Divisions and Historical Context

During the parliamentary debate preceding the vote, Work and Pensions Secretary Pat McFadden delivered a powerful critique of the policy's origins, describing it as "a political exercise in division between the deserving and undeserving poor." He told the Commons that the measure had seen "children used as pawns for almost a decade" and argued it was never genuinely about welfare reform or financial savings, but rather represented "the politics of dividing lines."

The policy was originally introduced under Conservative leadership and has remained a source of political tension. Labour, despite coming to power in summer 2024, initially cited spending constraints as preventing immediate abolition, indicating changes would require economic growth. This hesitation led to seven Labour MPs being suspended after supporting an SNP motion to scrap the measure earlier in the parliamentary session.

Impact on Child Poverty and Government Strategy

Campaigners have consistently argued that the two-child limit has profound consequences for family welfare, with estimates suggesting approximately 109 children across the UK are pulled into poverty daily due to the policy. The proposed change would mean families could receive the child element of Universal Credit for all children regardless of family size.

According to analysis by the Joseph Rowntree Foundation, around 400,000 fewer children will be living in poverty this April compared with twelve months earlier as a result of the planned abolition. The Office for Budget Responsibility estimates the move will cost approximately £3 billion annually by 2029/30.

Cross-Party Positions and Future Implications

The Conservative opposition has maintained that they would reinstate the policy if returned to power, with shadow work and pensions secretary Helen Whately arguing that "people on benefits" should not avoid the difficult financial decisions faced by working families. Conservative former deputy prime minister Sir Oliver Dowden defended the policy's principle of personal responsibility, suggesting its removal would transfer financial burdens to taxpayers.

Liberal Democrat work and pensions spokesperson Steve Darling supported the government's bill, describing the two-child limit as a "Dickensian policy of judging families" and stating opposition to it was in his party's "DNA." Reform UK's position has shifted, with leader Nigel Farage initially supporting abolition but later clarifying this would only apply to families with both British parents working full-time, before ultimately stating his MPs would vote against removing the limit.

Funding and Broader Anti-Poverty Strategy

The government has outlined how scrapping the two-child limit will be funded through a combination of measures including savings from benefit system fraud and error reduction, changes to the Motability scheme, and reforms to online gambling taxation. Chancellor Rachel Reeves announced the planned abolition in last year's autumn budget following sustained pressure from charities, campaigners, and parliamentary colleagues.

This policy change forms part of a wider government strategy to tackle child poverty, with ministers claiming that combined measures will lift 550,000 children out of poverty by 2030. The government has hailed this as potentially the biggest reduction in child poverty achieved within a single parliamentary term since records began.