More than 260,000 children in London will benefit from the lifting of the two-child welfare cap, according to official figures.
The capital will see the most youngsters whose families will gain more benefits, compared to other regions, from the ditching of the cap which is widely expected to be announced by Rachel Reeves in the Budget on Wednesday, at a cost of £3 billion.
The Standard’s interactive map below shows the boroughs where children and families will be boosted most from the cap being lifted.
In Newham, 15,910 children will benefit from the axing of the cap, according to figures from the Department for Work and Pensions, in Hackney 15,740 and in Tower Hamlets 15,520.
In Brent, the figure is 13,880 children, Enfield 12,960, Croydon 12,920, Barking and Dagenham 11,930, Ealing 11,060, and Barnet 10,470, with the lowest number being in Kensington and Chelsea at 1,440.
Across the capital, 72,600 households will benefit from the cap ending, the most of any region in England.
Former shadow Chancellor John McDonnell, who lost the Labour whip last year after rebelling over the Government keeping the cap, firmly expects it to be ditched in the Budget.
“I think it’s almost certain now,” said the Left-wing MP for Hayes and Harlington.
“Rachel Reeves understands the impact of the cap now.”
George Osborne, as Chancellor, introduced the cap in 2017 which means parents can only claim universal credit or tax credits for their first two children.
Families receiving universal credit typically receive a ‘child element’ worth £3,500 a year per child but the cap means they do not receive it for third and subsequent children born on or after 6 April 2017.
Tom Waters, head of income, work and welfare at the Institute for Fiscal Studies, said: “If the goal is to reduce child poverty then removing the two-child limit is one of the most targeted ways to do that.
“We estimate that removing the two-child limit would reduce child poverty by about 600,000 or so children, so quite a meaningful impact on the overall rate of child poverty.”
But a majority of voters in Britain back keeping the cap, according to polls, with the argument that families not on benefits have to make decisions about how many children they can afford to have so those on welfare should face the same choices.
Conservative MPs, including Neil O’Brien who represents Harborough, Oadby & Wigston, are already accusing the Government of planning to raise taxes to spend billions more on benefits.
Axing the cap, though, is overwhelmingly backed by Labour members, some of who stress that children should not be punished for being born into large families, or due to choices of their parents.
A Government spokesperson said: “Every child, no matter their background, deserves the best start in life. With almost three-quarters of children in poverty from working households, we know families are trying their best but need support.
“That’s why our Child Poverty Taskforce will publish an ambitious strategy to tackle the structural and root causes of child poverty – failure to do so is bad for them and ultimately for the wider economy.“
Ms Reeves’ Budget is set to include a series of measures to address the cost-of-living crisis, including freezing rail fares which will benefit London commuters.
There are around 18,000 households that will get more than £14,000 a year EXTRA in benefits when Reeves ends the two child limit on Wednesday.
— Neil O'Brien (@NeilDotObrien) November 24, 2025
Working people will pay more tax so they can have more benefits. (1/2) pic.twitter.com/JfLk3wri1E
But she is also due to impose a series of tax rises as she seeks to plug a shortfall of about £20 billion in the public finances.
They include a “mansion tax” on expensive properties, possibly on homes worth over £2 million, which would hit London hardest.
Hundreds of thousands of people in the capital and wider South East are also set to be dragged into paying higher rates of income tax if as expected Ms Reeves extends the six-year Tory freeze on thresholds for this levy by another two years until 2029/30.
The Chancellor is resorting to higher taxes, despite Business Secretary Peter Kyle admitting that Labour taxes have driven some wealthy people to leave London and other parts of the UK for abroad.
Labour support is at a record low in the capital, of 32%, with Nigel Farage’s Reform UK surging to 23%, according to a new poll by Savanta UK for Centre for London.
Other measures in the Budget are expected to include new restrictions on salary sacrifice pension schemes, reducing the cash ISA allowance, increased levies on gambling, as well as raising taxes on alcohol, tobacco and unhealthy food.
