Government scraps two-child Universal Credit limit

The scrapping of the two-child Universal Credit limit has become law.

Pat McFadden (c) UK Parliament

Pat McFadden (c) UK Parliament

The Government said the move, combined with the expansion of free school meals to all children in households on Universal Credit from September 2026, will lift 550,000  children out of poverty.

Speaking yesterday, secretary of state for work and pensions, Pat McFadden, said: ‘Today is an historic day, marking a turning point for 450,000 children across Britain.

‘Scrapping the two-child limit is about more than family finances today, it's about the Britain we're building for tomorrow.

‘Children growing up in poverty are far more likely to leave school without qualifications and end up not in work or education as young adults, and we're determined to break that cycle once and for all and give every child the best start in life.'

There are currently 4.5m children (31%) living in relative poverty after housing costs in the UK, 900,000 more than in 2010/11.

Almost three in four children in poverty (72%) live in a working household.

The Government claimed the move, which sits at the heart of the Child Poverty Strategy, could support up to 1.5m children, representing the most significant action to tackle child poverty since comparable records began.

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