Why the two-child limit failed you—and pushed more families into poverty

DCM Editorial Summary: This story has been independently rewritten and summarised for DCM readers to highlight key developments relevant to the region. Original reporting by The Conversation, click this post to read the original article.

UK Chancellor Rachel Reeves has announced plans to scrap the two-child benefit limit by April 2026. This policy, introduced in 2017, restricted financial support to the first two children in a household, with only specific exceptions. Over the years, many families like yours may have found it increasingly difficult to cover basic costs under this rule. Research shows that the limit often forced parents to skip everyday family activities and make tough choices, even affecting their ability to provide a stable and nurturing home environment.

You might recall the two-child limit and the benefit cap being introduced during the UK’s austerity drive. At the time, political and media narratives focused on portraying welfare recipients negatively—often dividing people into “strivers” and “shirkers.” However, this view overlooked the reality that many families receiving benefits were actually in work. In fact, most people affected by the two-child limit, like many you may know, live in working households. The rhetoric also ignored how everyone pays taxes, including low-income families who often contribute a higher percentage of their income through taxes like VAT.

When these policies were introduced, the government hoped they would change behaviour—encouraging people to have fewer children or seek employment. But research shows that this didn’t happen. People don’t plan life events like job loss or illness, and expecting families to react to financial penalties isn’t realistic. If you’ve ever faced unexpected hardship, you know how important a strong social security system can be. Issues like a shortage of affordable housing or lack of childcare aren’t solved just by cutting benefits.

Both the two-child limit and the benefit cap have deepened poverty in the UK, particularly among the most vulnerable—larger families, single parents, and people with disabilities. You may have seen or experienced these challenges firsthand: more children growing up in poverty, families making difficult trade-offs, and a lack of meaningful support to improve their situations. Despite strong evidence against these policies, anti-welfare rhetoric has helped keep them in place far longer than many expected.

Now, with Reeves’ proposed changes, there could be a shift in how the UK approaches social support. Her plan has broad public backing, with 83% of people supporting stronger action on child poverty. As someone who values the well-being of children and families, you might see this as a step toward a fairer system—one where children have the chance to thrive and contribute positively to society as they grow.