Labour lifts two-child cap, granting over 2,000 large families an extra £21,800 annually

After Labour scrapped the two-child benefit cap, more than 2,000 families with eight or more children will receive roughly £21,800 extra per year, according to Department for Work and Pensions data obtained via Freedom of Information. The policy shift also benefits 17,290 households with six or more children, adding about £14,589 each year. The cap, which had limited Universal Credit and child tax credit to the first two children since 2017, was removed by Keir Starmer shortly before his resignation, who described it as his proudest accomplishment.

Critics, including Conservative leaders Kemi Badenoch and Helen Whately, argue the change will cost the public purse about £3 billion annually and undermine fiscal discipline. A DWP spokesperson noted that nearly 60% of the newly eligible households have at least one working parent and that the reform lifts 450,000 children out of poverty in one outlet parliamentary term.