THE number of households affected by the two-child benefit cap has increased by more than 13,000 over the past year, with more than 1.6 million children now impacted.
According to fresh statistics, 469,780 households claiming Universal Credit were affected by the two-child limit policy in April this year, which represents a 3% increase in the past 12 months.
There were 1,665,540 children living in those households – 37,150 (or 2%) more than the year before.
A chunk of households had an exception to the policy (26,300) but the vast majority (453,600) were not receiving the child element of Universal Credit because of the policy.
Tom Pollard, head of social policy at the New Economics Foundation, has described the policy as a "child poverty machine" which was "cost us all more in the long term", as he called on the UK Government to get rid of the cap.
The two-child limit, which was introduced by the Tory UK government in 2017, means families on Universal Credit can only claim support for up to two children.
They can only claim support for a third or subsequent child if they qualify for an exception, such as if a child is born as a result of non-consensual conception – a controversial exemption that is often branded "the rape clause".
New government data on the impact of the two child limit: 469,780 households now affected, with 1,665,540 children in those households Almost 40,000 more children affected since last year It's a child poverty machine & it will cost us all more in the long term - get rid of it
— Tom Pollard (@PollardTom) July 10, 2025
The policy has been kept in place by the Labour UK Government since the party took power in July last year.
SNP MP Kirsty Blackman described the latest figures as "shameful" and said “this punitive welfare policy should have been scrapped on the first day Keir Starmer got into Downing Street".
“Instead of taking action on poverty, Labour have made life harder for families by imposing more austerity cuts while the cost of living soars – slashing support for disabled people, robbing pensioners of their winter fuel payments, and increasing energy bills," she said.
“Scotland is the only part of the UK where child poverty is falling, thanks to SNP action.
"It is vital that the Labour Government urgently follows the lead of the SNP Scottish Government by introducing a bold package of measures to eradicate child poverty including abolishing the two-child cap and bedroom tax, and matching the SNP’s Scottish Child Payment UK-wide by raising the child and family element of Universal Credit by £27.15 per child per week."
A major report released this week which called on the UK Government to scrap the policy said children in England are living in “Dickensian” poverty.
Rachel de Souza, the Children’s Commissioner for England, detailed how children are going without food and proper hygiene while living in cramped conditions.
Her report, which was commissioned by the UK Government, drew on the experiences of 128 children across England between January and March this year.
Speaking to BBC Breakfast, she said she had been Children’s Commissioner for England for four years but was shocked “by how much worse things have got”.
The report was commissioned by the Government as it works on developing a strategy to tackle child poverty. Several charities have said such a strategy will not be credible if it includes the two-child limit.
Earlier this week the SNP urged the Prime Minister to end the limit amid reports it could stay as a result of Labour watering down most of its welfare reforms.
The UK Government had attempted to save around £5 billion a year by cutting welfare, mostly for those claiming disability and health benefits, but made concessions following a revolt from MPs.
The move means the Treasury may not see any savings at all as the welfare budget is still set to rapidly rise in the coming years.
Media reports suggest the move could see ministers keep the cap in order to save money.
The Scottish Government has committed to abolishing the cap from March next year if it is kept in place by the UK Government.
