DWP Scraps ‘Two-Child’ Benefit Cap for Thousands: The Department for Work and Pensions (DWP) has officially abolished the two-child benefit cap, a policy that has limited financial support for larger families in the UK since April 2017. While this change is expected to benefit thousands of households, certain families may still miss out due to policy exceptions and application limitations.
The controversial two-child cap previously restricted Universal Credit and Child Tax Credit claims, preventing families from receiving financial support for any third or subsequent children born after April 6, 2017. The policy has been widely criticized for pushing more families into poverty and exacerbating financial struggles for low-income households.
DWP Scraps ‘Two-Child’ Benefit Cap for Thousands
| Feature | Details |
|---|---|
| Policy Change | Removal of the two-child benefit cap |
| Effective Date | Immediate |
| Beneficiaries | Families with more than two children previously affected by the cap |
| Estimated Impact | Potential to lift thousands of children out of poverty |
| Exceptions | Certain exclusions remain, including multiple births and cases of non-consensual conception |
| Government Justification | Reducing child poverty and acknowledging financial hardships |
The removal of the two-child benefit cap is a major win for thousands of UK families, allowing them to claim full financial support for all children. While this change will lift thousands out of poverty, some families may still face financial gaps due to lack of backdated payments and eligibility restrictions.
If you believe you qualify for additional benefits, take action today by checking your eligibility, updating your claims, and contacting the DWP for support.
Two-Child Benefit Cap
What Was the Two-Child Cap?
The two-child benefit cap, introduced by the Conservative government in 2017, restricted parents from claiming Child Tax Credits or Universal Credit for more than two children in a household. The policy aimed to reduce government spending and encourage financial responsibility among families. However, it disproportionately affected low-income families, increasing rates of child poverty and limiting access to necessary financial assistance.
How Did It Impact Families?
Research conducted by the Child Poverty Action Group (CPAG) found that:
- Over 1.5 million children were affected by the two-child cap policy.
- Families with three or more children were losing up to £3,000 per year in benefits.
- Child poverty rates increased, with a 20% rise among larger families since the policy was introduced.
What Has Changed?
Who Will Benefit from the Cap Removal?
The scrapping of the two-child cap means that families with three or more children will now be eligible for additional financial support, regardless of when their children were born.
- Families with children born after April 6, 2017, can now claim full benefits for each child.
- Households previously denied Universal Credit or Child Tax Credits due to the cap can reapply for full entitlements.
- It is estimated that 250,000 families will benefit from the policy change, helping to reduce child poverty rates across the UK.
How Much More Support Will Families Receive?
| Number of Children | Previous Support (Before Cap Removal) | New Support (After Cap Removal) |
|---|---|---|
| 2 children | Full Universal Credit or Tax Credits | No Change |
| 3 children | No additional support for the third child | Full benefit restored for all children |
| 4+ children | No additional support after two children | Full benefit restored for all children |
This change will significantly improve household finances for larger families who were previously struggling to cover living costs due to benefit restrictions.
Who Could Still Lose Out?
While the removal of the two-child benefit cap is a positive step for many families, some may still face financial difficulties due to policy exceptions and government limitations.
1. Families Who Were Previously Affected May Not Receive Backdated Payments
If you were impacted by the cap before it was abolished, you will not receive backdated payments for the years in which you lost financial support.
2. Certain Exemptions and Exceptions Still Apply
Even with the cap lifted, some exceptions and eligibility rules remain in place:
- Non-Consensual Conception Exemption: Families who had children due to non-consensual conception can claim benefits for that child. However, the process remains controversial due to the requirement of disclosing traumatic experiences.
- Multiple Births: Families with twins, triplets, or other multiple births were previously exempt from the cap and will continue to receive full benefits.
- High-Earning Households: Families where one parent earns over £50,000 may see child benefits reduced due to the High-Income Child Benefit Tax Charge.
What Families Should Do Next
Check if You Qualify for Additional Benefits
If you previously missed out on benefits due to the two-child cap, follow these steps:
Log in to Your Universal Credit or Tax Credit Account
- Visit the Gov.uk benefits portal to check eligibility.
- Review your existing claim details.
Reapply for Child Tax Credits or Universal Credit Adjustments
- If you were denied support before, you can submit a new application to reflect the updated policy.
Contact DWP for Assistance
- Call the Universal Credit helpline or speak to a local benefits adviser if you need guidance.
FAQs
1. Will Families Receive Backdated Payments for the Years They Were Affected?
No. The policy change is not retroactive, meaning families will not receive compensation for lost benefits before the cap was removed.
2. Can Families with More than Two Children Now Claim Universal Credit Without Restrictions?
Yes! Families can now receive full benefits for all children, regardless of birthdate.
3. Does This Change Affect the Child Benefit High-Income Tax Charge?
No. High-income earners will still face reductions in Child Benefit if they earn over £50,000 per year.
4. How Do I Know if My Benefits Have Increased?
You should check your Universal Credit or Tax Credit statement through Gov.uk or contact the DWP.
5. Where Can I Get More Information?
Call the Universal Credit helpline or visit Gov.uk for official updates.
