DWP confirms higher Universal Credit payments for 436,000 claimants after law change
The Department for Work and Pensions has confirmed higher Universal Credit payments for 436,000 claimants following a significant law change. Of the 478,120 households not receiving child element for at least one child in their household, 436,780 households are expected to see an increase in their Universal Credit payment following the removal of the two-child limit.
The Universal Credit two-child limit policy was removed in April 2026, taking effect for assessment periods beginning on or after 6 April 2026. Between 6 April 2017 and 5 April 2026, families on Universal Credit or Child Tax Credit were able to claim support for up to two children. The policy had been announced by then Chancellor George Osborne in 2015.
According to the latest figures, 17,870 households already have exceptions for all of the children in their household affected by the policy and therefore will not see any increase in their Universal Credit payment. The policy had various exemptions in place, including additional children in multiple births and those likely to have been born as a result of non-consensual conception. An exception also applied for any children in a household who are adopted when they would otherwise be in local authority care or in non-parental caring arrangements when they would otherwise be at risk of entering the care system, including where a child under 16 has a child.
In April 2026, 495,990 households were affected by the two-child limit policy, representing an increase of 15,700 (3 per cent) in the total number of households affected since April 2025. These households contained 1,752,200 children, with 1,695,400 in households not receiving some child element because of the policy.
The Trussell Trust charity previously described the two-child limit as the single biggest driver of child poverty. Helen Barnard, director of policy at Trussell Trust, said: "Every week food banks in the Trussell community support parents who've been doing everything they can to protect their children from hunger. Skipping meals for weeks so there's enough for the kids to eat, making games out of wrapping up in blankets to avoid turning on the heating, trying to pretend everything's okay but it's not okay."