Glossary
What is the two-child benefit limit?
The two-child benefit limit was the rule that capped the child element of Universal Credit at the first two children. It was abolished from April 2026.
How it worked
Introduced in 2017, the limit meant families received no extra child element for a third or later child born after April 2017 — worth roughly £3,500 a year per child. Supporters framed it as fairness to taxpayers; critics linked it to child poverty.
Why it matters now
The government abolished the limit from 6 April 2026, so families now receive the child element for every child. Reform UK proposes reinstating the cap.
Plain-English definition for general information only — not financial, legal or tax advice. Rates are 2025/26 unless stated.