Prime Minister Andy Burnham has scrapped the two-child benefit cap, delivering a £304-a-month increase for Universal Credit households with three children. The change, which took effect immediately upon his entry to office, means families with four children will receive an extra £608 each month.
Ending the Two-Child Cap
The two-child limit, originally introduced by the Conservative government, previously restricted benefit claims to two children per household. Burnham had long opposed the policy, calling it arbitrary and indefensible. In a speech last year, he stated: “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.”
Impact on Low-Income Families
The decision is expected to lift half a million children out of poverty, according to former Prime Minister Keir Starmer, who called it “the moral thing to do.” For a family with three children on Universal Credit, the additional £304 per month represents a substantial financial boost. However, the policy has proven divisive. Critics argue that Labour is increasing welfare spending excessively, contributing to a “benefits Britain” culture, and claim that people may have more children to receive additional state support.
Political Context
Burnham enters office only weeks after Labour scrapped the two-child cap, a move he fully endorsed. He has suggested the policy will remain unchanged during his premiership. The end of the cap allows larger families to claim more in benefits, reversing a long-standing Conservative measure. The change has sparked debate about the balance between supporting vulnerable families and fiscal responsibility.
