A significant change to the benefits system has come into effect, and many families may not yet realize they could now be entitled to more support. The government announced the change in the 2025 Autumn Budget, it became law in March 2026, and it has been in effect since April.
End of the Two-Child Limit for Universal Credit
Since 2017, families claiming Universal Credit could only receive the child element for their first two children. Any third or subsequent child born after April 2017 was not counted for calculating payments. From April 6, 2026, that restriction no longer exists. Families can now claim the child element for every child in the household, regardless of how many they have.
The child element is worth around £3,650 a year per child in 2026/27, meaning a family with a third child previously excluded could now receive an additional £304 a month.
Who Benefits?
The government estimates around 480,000 households could benefit in 2026/27. Around 60% of households affected by the previous cap had at least one parent in work, so the change is not limited to families out of work entirely. The change applies only to the child element of Universal Credit and does not affect Child Benefit, which is a separate payment.
What to Do If You're Already Claiming Universal Credit
For families already claiming Universal Credit, the DWP should have updated payments automatically from May or June 2026, depending on individual assessment periods. If the change has not appeared by now, families can raise it through their Universal Credit online journal or by calling the Universal Credit helpline on 0800 328 5644.
What to Do If You're Not Currently Claiming
For families not currently claiming Universal Credit who think they may now be eligible, it is worth checking entitlement using the free benefits calculator at Turn2Us or through GOV.UK. The additional child amounts increase a family's maximum Universal Credit award, meaning some families who previously fell just outside the eligibility threshold may now qualify for the first time.
Important Considerations
Some families subject to the overall benefit cap may not receive the full additional amount. Current benefit cap rates vary depending on circumstances and can be checked directly at www.gov.uk/benefit-cap. Families where someone is disabled or seriously ill are exempt from the benefit cap and will receive the full entitlement.
A spokesperson for financial assistance experts Vettory said: "Many families may not realise this change already applies to them and money they are entitled to could simply be going unclaimed. The child element alone is worth around £3,650 a year per child, so for a family with three children the difference can be significant. If payments have not changed since April, it is worth raising it through the Universal Credit journal or checking eligibility through a free benefits calculator before the months continue to add up."
With the change already in effect and payments being updated automatically for most, the main action needed is simply to check — and for those not yet claiming, to find out whether the new rules mean they are now eligible for the first time.
