The Two-Child Limit, which came into effect in April 2017 under the Conservative Government, restricts the child element of Universal Credit (UC) and Child Tax Credit (CTC) to the first two children in a household.
By 2024, the two-child limit was affecting over 1.5m children across more than 400,000 households, with significant growth projected as more post-2017 births fall under the restriction. Research by the Child Poverty Action Group (CPAG) and Resolution Foundation highlights the disproportionate impact of the policy on larger families, particularly in disadvantaged communities.
It is estimated that removing the limit would lift approximately 250,000 children out of poverty, and improve the financial security of many households.
This report looks at the impact of the two-child limit on issues like child poverty, the Government’s position on this limit, as well as the cost of the termination of the policy.
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