Benefit cap now affects 165,000 families after two-child limit removal
New DWP data shows 165,000 households are hit by the benefit cap, losing an average of £80 each, following the abolition of the two-child limit.
New figures from the Department for Work and Pensions reveal that 165,000 families are now subject to the benefit cap, with deductions averaging £80 per household. The number of capped families has risen by 53,000 since February 2026, a 48 % increase, largely because the two-child benefit limit was removed in April 2026 and basic Universal Credit rates were lifted above inflation. The cap, set at £1,835 per month for most claimants and £2,110.25 in Greater London, stays frozen for the 2026/27 fiscal year.
About 370,000 children live in households hit by the cap, and analysts say many are being pushed into very deep poverty, lacking essentials such as food and heating. Iain Porter of JRF urged the government to create a protected minimum floor in Universal Credit to limit the impact of the cap. A DWP spokesperson argued the cap is a targeted measure that balances support with incentives for work.
Why it matters
The expanding benefit cap threatens deep poverty for hundreds of thousands of children and families across the UK.
How the sides frame it
LOW AGREEMENTLeft-leaning coverage emphasizes the expanding reach of the benefit cap and its harmful impact on families, while centrist coverage focuses on a HMRC notice encouraging eligible new parents to claim child-benefit payments.
LEFT
Highlights the surge in families hit by the benefit cap, the resulting deep poverty, and calls for a protected minimum floor in Universal Credit.
CENTER
Promotes a HMRC alert that informs eligible new parents how to claim extra child-benefit cash.
The left emphasises
- 165,000 families now subject to the benefit cap, a 48 % rise since February 2026
- about 370,000 children affected and being pushed into very deep poverty
- analysts urge a protected minimum floor in Universal Credit
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