What is the Two-Child Benefit Limit?
The two-child limit stops parents receiving the child element of Universal Credit — worth about £3,514 a year per child — for third or subsequent children born after 5 April 2017. It is now being scrapped.
How the two-child limit works
Introduced in April 2017, the limit means Universal Credit and tax credits pay the child element (about £292.81 a month, £3,514 a year in 2026/27) for a maximum of two children, if the third or later child was born after 5 April 2017. Exceptions exist for multiple births, adoption and children conceived non-consensually. It is often confused with child benefit, which is a different payment made for every child regardless of family size — check yours with the child benefit calculator.
The effect — and the row
By 2025 the limit affected roughly 1.6 million children, and child-poverty researchers consistently identified it as the single policy pushing most children into poverty — an extra sibling meant no extra help. Supporters argued families on benefits should face the same choices as working families, and that the limit saved several billion pounds a year. After years of pressure, the government announced the limit would be scrapped, restoring the child element for all children.
Why it still matters
Because it isn't settled: Reform UK has pledged to reinstate the cap, making it a live dividing line at the next election. See what scrapping it is worth to an affected family — up to £3,514 per third-plus child — with the explainer and calculator.
Plain-English guide for general information only — not financial, legal or tax advice. Rates are 2026/27 unless stated. Last reviewed 5 July 2026.
Frequently asked questions
What is the two-child benefit limit?
A rule from April 2017 that stopped Universal Credit's child element (about £3,514 a year per child) being paid for third or subsequent children born after that date. The government is scrapping it; Reform UK would bring it back.
Is the two-child limit the same as child benefit?
No. Child benefit (£26.05 a week for the eldest, £17.25 for each other child) is paid for every child whatever the family size. The two-child limit only restricted the child element inside Universal Credit and tax credits.
How much is scrapping the two-child limit worth?
Up to £3,514 a year (2026/27 rates) for each third or subsequent child previously excluded. A family with four children born after 2017 gains about £7,028 a year. Use the calculator on our explainer for your family's figure.