DWP 'turning point' could leave families up to £3,650 better off
The UK government has passed the Child Poverty Bill which scrapes the two-child limit on Universal Credit, potentially benefiting many families significantly.
The Child Poverty Bill in the UK has received Royal Assent, paving the way for significant reforms in how families access financial support. One of the most notable changes is the removal of the two-child limit on Universal Credit, which previously restricted families to claim benefits only for the first two children. This reform is expected to benefit working families particularly, as they will now receive financial support for every child in their household, thereby addressing some of the financial hardships faced by larger families.
Additionally, the government plans to increase benefit rates in April, which will enhance the financial impact of this new law. Families could see an increase of up to £300 per month, resulting in total potential benefits of up to £3,650 annually. The government estimates that this change could uplift approximately 1.5 million children across Great Britain, and it directly addresses the challenges many face in balancing work and family life while striving to escape poverty.
The implementation of these changes starts on April 6, 2026, which allows time for families to prepare and adjust to the new regulations. The overarching goal of the Child Poverty Bill is to reduce financial strain on families and promote a more equitable support system that reflects the needs of all children, regardless of family size. This legislative shift is a significant step towards addressing child poverty and improving the welfare of vulnerable families in the UK.