The Department for Work and Pensions (DWP) is providing additional financial support to families on Universal Credit amid the ongoing cost of living crisis. The DWP has officially abolished the two-child benefit cap, offering much-needed relief to households facing financial strain.
Increased Payments Expected in May or June
While the policy change has been enacted, most families will not see the immediate impact. Higher payments are anticipated to begin arriving from May or June. The child element of Universal Credit currently stands at £333.33 per month for the first child born before April 6, 2017, and £287.92 per month for each subsequent child.
With the cap removed, families can now claim an additional £287.92 per month for every child previously excluded from their claim. Over a year, this amounts to more than £3,400 per child.
Experts and Advocates React
Alison Garnham, chief executive of the Child Poverty Action Group (CPAG), highlighted the severe impact of poverty on children, including worse health and education outcomes, lower life expectancy, and reduced earnings as adults. She described the abolition of the cap as a critical first step in improving opportunities for children.
One mother shared her struggles: "The children have only been back at school two weeks and already I'm in debt for school dinners and upcoming school trips. If my child is the only child that doesn't go, that will have an effect on him. Every month I do our budget to the last penny."
Citizens Advice reported witnessing the devastating effects of the two-child limit on families daily. David Mendes da Costa, its head of policy, stated that lifting the limit would mean the difference between falling into debt and being able to afford basics like food and school uniforms.
Dan Paskins, executive director of UK impact at Save the Children UK, noted that the two-child limit had effectively capped childhood for nine years, keeping families in poverty and robbing children in larger families of equal opportunities. He expressed optimism that the change would allow incomes to better match the real cost of raising a family, leading to improved health outcomes, educational attainment, and long-term job prospects for children.
