By Colette Cairney

The two-child benefit cap was introduced in the UK in April 2017. This prevented many families from claiming Universal Credit for a third child or any subsequent children born after this date.

Before April 2017, parents who were eligible for the child benefit payment received £282.50 per child, and this decreased to £237.08 for each additional child.

After the two-child benefit cap was introduced, parents/guardians received £104.02 for one child and for an additional child, this was further dropped to £69.

The two-child limit disproportionally affected poorer households and families with more than two children.

Families in the poorest 30% of working-age households were seen to be most affected by the introduction of the cap.

The decision was made to introduce the two-child benefit cap by the Conservatives in hopes of encouraging parents of poorer families to make the same financial choices as people who support themselves and their families by working.

Since 2017, approximately 100 children a day have ultimately been forced into poverty in Scotland because of the cap. The government estimates this new measure will hopefully lead to fewer children in poverty.

The government estimated 450,000 fewer children are in poverty by 2029-30.

Announcing the removal of the cap has been welcomed by child poverty campaigners, such as Child Poverty Action Group (CPAG). It was also met with cheers from Labour MPs in the House of Commons.

Chancellor Rachel Reeves said: “The cap pushes kids into poverty more than any other.

"It made almost no difference to the size of families.”

This is evidence that children were pushed into poverty for nearly no reason, as families continue to expand, even though parents of those children would not be eligible for a child benefit payment.

The Resolution Foundation is an organisation focused on improving living standards for low to middle-income families. The think tank stated that scrapping the two-child cap would cost £3.5billion a year.

In 2025, the foundation was run by Torsten Bell, who is now Chancellor Rachel Reeves’ top advisor at the Treasury. She has also argued for scrapping the cap.

Many Scottish Conservatives have argued that removing the two-child benefit cap is more likely to discourage people from working, as with the extra income, there is no need to find a job.

Conservatives have also argued that stopping the benefit cap drives up welfare spending, such as unemployment support, pensions, and healthcare.

The ideal scenario for ditching the two-child benefit cap is that it would hopefully bring more children out of poverty and bring stability to families across Scotland.

Removing the cap is anticipated to lift as many as 450,000 children out of poverty by April 2026.

Conservative leader Kemi Badenoch has been adamant in defending the cap; she said: "It strikes the right balance between supporting people who are struggling and protecting taxpayers who are struggling themselves.”

Badenoch has accused the government of losing control of welfare spending. She added, "They are hiking taxes on workers, pensioners and savers to pay for handouts to keep their backbenchers quiet."

Chancellor Rachel Reeves has been put under immense pressure to remove the cap, Labour MPs and different charities argue it is the most effective way to reduce child poverty.

Many campaigners have welcomed the move as long overdue for many families. Many stress it is only a first step, with child poverty rates still high and living costs continuing to rise each day. The end of the two-child cap may ease the pressure, but it will not be enough to end child poverty overall.

The Removal of the Benefit Cap