New rules for Universal Credit households have come into force, lifting the two-child benefit cap and allowing families to claim significantly more in benefits. The change comes as Andy Burnham prepares to enter Downing Street later this month, having supported the removal of the cap.
How Much More Can Families Claim?
Under the previous Conservative policy, families could only claim for two children. Now, households with three children will receive an extra £304 each month, while those with four children will get £608 more. This represents a substantial increase in financial support for larger families.
The policy shift is expected to lift half a million children out of poverty, according to Keir Starmer. However, opponents argue that Labour is paying out too much in benefits.
Andy Burnham's Stance on the Two-Child Cap
Burnham has been a vocal critic of the two-child limit. Speaking last year, the former Greater Manchester Mayor said: “I never supported it, its introduction. It can’t be defended, because it’s arbitrary. Why does the third kid just get cut out or get less or why do all three if you’ve got three kids? I’m one of the three kids. My mum got child benefit for all of us … My parents always said to me something that has definitely guided me in my life – you can never visit the sins of the parents on the kids.”
Burnham's personal experience as one of three children has shaped his view, and he has indicated that the policy will not change while he is Prime Minister.
Impact on Households
The lifting of the cap is already making a considerable difference to finances for families with more than two children. For a household with three children, the extra £304 per month could cover essential costs like food, clothing, or school supplies. For those with four children, the £608 increase is even more significant.
Critics, however, express concern about the long-term cost to the taxpayer and the potential disincentive to work. Despite this, the Labour government argues that the move is necessary to address child poverty and support vulnerable families.
The change is part of a broader set of reforms as Burnham prepares to take office, with further announcements expected in the coming weeks.
