Our reaction to lifting the two-child limit
26 November 2025
The UK Government has announced that the two-child benefit limit will be abolished in full from April 2026, marking one of the most significant changes to social security policy in nearly a decade. Introduced in 2017, the limit prevented families from claiming Universal Credit or tax credits for a third or subsequent child, affecting an estimated 1 in 9 children across the country.
Research also shows that 59% of affected families have at least one working parent, highlighting the policy’s disproportionate impact on low-income working households, a group we know is particularly affected by the rising cost of living. An open letter from Trussell argues how growing up in poverty scars children’s lives. It leads to shorter life expectancies, poorer educational outcomes, and worse physical and mental health. It also often means stress and isolation, hunger, and cramped and damp housing. It’s a situation that no child deserves.
The Chancellor’s announcement to scrap the two-child benefit limit is widely regarded by anti-poverty organisations as the single most cost-effective step the Government could have taken to reduce child poverty. The Child Poverty Action Group estimates that the change will lift 350,000 children out of poverty and reduce the depth of poverty for an additional 700,000 children across the UK. Families with three or more children will see their incomes rise by more than £3,000 per child each year - a transformational difference for households struggling to meet the costs of essentials like food and energy bills.
This is a significant step in the right direction to tackling child poverty in the UK. We know at Walton Charity that there has been an increasing demand for our foodbank and our community hub, The Bridge, which is specifically open to working families with children. Through our individual and community grants programme, we’ve also observed the growing pressure on our partner organisations that are working with local people to tackle the cumulative effects of high living costs and inadequate benefits. In the summer, we joined over 700 campaigners in Westminster to urge our MP to back a stronger social security system that ensures everyone can afford the basics. We also published our research on our foodbank clients and the reasons that they need to turn to us, and the results revealed that many of our clients had a long-term health condition, were single parents, or were working full-time or part-time to try and make ends meet.
We welcome this policy change and believe that it will help relieve the pressure on over-stretched households. Our CEO, Rob Mills, writes that “we are really pleased that the Government has ended the two-child benefit limit. We know from those families using our foodbank and The Bridge that the existing limit has a real impact on them. The scrapping of the limit will have a positive impact for many and will help lift many local children out of poverty”.
We are glad that national action aligns with our mission of creating a thriving community free from poverty and inequality and as we look towards 2026, we will ensure that our work continues to meet the changing needs of those living in Elmbridge.
Article by Amy Dixon, Walton Charity’s Policy and Communications Officer