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Two-Child Benefit Cap Lifted to Combat Child Poverty

11/29/2025

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Summary

Story summary

The two-child benefit cap will be removed as part of the 2025 Budget, as announced by the Chancellor of the Exchequer Rachel Reeves.
The change is expected to lift about 450,000 children from poverty by 2029-30 and cost around £3 billion annually.
Charities welcomed the decision, saying it will improve affected families' lives.
The policy will take effect in April 2026 after extensive lobbying from various organizations.

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Story summary

The two-child benefit cap will be removed as part of the 2025 Budget, as announced by the Chancellor of the Exchequer Rachel Reeves.
The change is expected to lift about 450,000 children from poverty by 2029-30 and cost around £3 billion annually.
Charities welcomed the decision, saying it will improve affected families' lives.
The policy will take effect in April 2026 after extensive lobbying from various organizations.