Two-child benefit limit impacts families

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entrenched child poverty

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This is the harsh reality of the two-child benefit cap for families

Summary

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The two -child limit on benefits means that Thea has to make her income stretch further between her three children.

Charities have called it “ one of the cruellest welfare policies of the last decade ” Low-income families lose around 3,200 a year for a third or subsequent child born after April 2017 .

Half of families affected by the two -child benefit cap are single parents, HMRC research shows.

They are more likely to rely on benefits because of the difficulties balancing work and childcare.

The Joseph Rowntree Foundation estimates the standard rate of universal credit falls by around 120 people each month .

The long-term costs to society of entrenched child poverty are “staggering’ at around 39bn annually.

Dropping the two -child benefit cap in full would come at a cost of 3.6bn in 2024-25 , the Resolution Foundation has estimated.

But that’s about 1% of the total welfare bill.

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