THE Scottish Government will abolish the two-child benefit cap in March next year, just weeks before the Holyrood election.
Social Justice Secretary Shirley-Anne Somerville has said the cap – which was introduced by the Tories at Westminster – will be lifted on March 2.
The two-child limit denies child allowances in Universal Credit and tax credits to third or subsequent children born after April 2017 and has been kept in place by Keir Starmer's Labour UK Government.
An associated so-called “rape clause” grants exemptions for a child born as a result of “non-consensual conception”, which has remained highly controversial since it was put in place.
The Scottish Government pledged to mitigate the policy in its Budget.
Under the SNP's mitigation plan, payments could work out at nearly £3500 for children affected.
The Scottish Fiscal Commission has estimated the cost of the Two Child Limit Payment to be £155 million in the financial year 2026/27.
Somerville has said the plan will mean there will be 20,000 fewer children in relative poverty next year.
She added it would be the fastest a Scottish social security benefit had been delivered.
"The Scottish Government has consistently called on the UK Government to end the two-child cap," Sommerville said. "Reports suggest that they are looking at the impact it is having. But the evidence is clear and families and Scotland can’t wait any longer for the UK Government to make up its mind to do the right thing and scrap the cap once and for all.
“The Two Child Limit Payment will begin accepting applications in March next year. At less than 15 months from when we announced this in the Scottish budget, this will be the fastest that a Scottish social security benefit has been delivered.
“This builds upon the considerable action we have taken in Scotland, including delivering unparalleled financial support through our Scottish Child Payment, investing to clear school meal debts, and continuing to support almost 10,000 children by mitigating the UK Government’s Benefit Cap as fully as possible."
Somerville added that the UK Government was still "holding back" Scotland's progress.
"Modelling published in March makes clear that if the UK Government act decisively on child poverty, they could help to take an estimated 100,000 children out of poverty this year," she said.
According to the Scottish Government, rates of both relative and absolute child poverty were nine percentage points lower than the UK average in 2023-24.
On average, households with children in the poorest 10% of households are, this year, estimated to be £2600 a year better off because of Scottish Government policies. This is projected to grow to an average of £3,700 a year by 2029/30.
In April, analysis showed the cap has dragged 30,000 more children into poverty since Labour took office.
The Child Poverty Action Group (CPAG) carried out research which also suggested 350,000 children would be lifted out of poverty instantly at a cost of £2 billion, while the depth of poverty would be reduced for another 800,000.
The organisation says 109 more children a day are pulled into poverty by the policy.
Due to the fact the two-child limit applies to third or subsequent children born after April 2017, it is effectively still being rolled out, with more and more children affected every day.
The number of children affected by the policy will continue to increase until 2035 when the first children born under the two-child limit turn 18.
