The two-child limit is abolished at last. Watch out for the narrative that will follow | Frances Ryan

"I don't intend to preside over a status quo that punishes children for the circumstances of their birth, the chancellor, Rachel Reeves, told the Commons, as she used the budget to scrap, from April 2026, one of Britain's most controversial policies. Four hundred and fifty thousand children will be lifted out of poverty as a result. That means 450,000 children who won't go to bed hungry any more or walk to school with holes in the soles of their shoes."

"Introduced by the Conservatives in 2017 to curb public spending and teach low-income parents that children cost money, the policy means parent can claim universal credit or tax credits only for their first two offspring. As of this summer, a staggering 1.7 million children lived in households affected by the policy. That's one in nine kids who miss out on help worth 3,514 a year."

Rachel Reeves used the budget to scrap the two-child benefit limit from April 2026, removing a policy that capped benefits to the first two children. The repeal will lift 450,000 children out of poverty and relieve families affected by households that previously missed out on £3,514 a year for subsequent children. The limit, introduced by the Conservatives in 2017 to curb spending, affected 1.7 million children and was linked to rising child poverty and a controversial "rape clause" requiring proof for exemptions. The government delayed action for 16 months, during which an average of 109 children were pushed into poverty each day.

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