Two child limit in Universal Credit and child tax credits

This House of Commons Library landing page has been published in advance of a debate entitled "Two child limit in Universal Credit and child tax credits". This will be led by Alison Thewliss MP and will take place in Westminster Hall on Tuesday 27th November 2018, starting at 2.30pm.

The two-child limit

As a result of measures first announced in the Conservative Government’s Summer Budget in 2015, the per child element in Child Tax Credit and in Universal Credit was limited to two children for new claims and births from 6 April 2017.  The Government justified this on the grounds that families in receipt of means-tested benefits “should face the same financial choices about having children as those supporting themselves solely through work.”  Around 900,000 families with three or more children currently receive tax credits.  The two child limit is expected to eventually yield savings of around £3 billion a year.  There are limited exceptions to the rule, including where children are born as a result of “non-consensual conception.” 

Further background to the policy can be found in Commons Library briefing CBP-7935, The two child limit in tax credits and Universal Credit (10 April 2017).

Detailed information on how the two-child limit applies can be found at the Child Poverty Action Group website – see Ask CPAG Online - the two-child limit...........................................................................................................................................................................................................................................................................................................................................................................................................................................................