Historic Child Poverty Bill Receives Royal Assent, Becomes Law
The Child Poverty Bill has officially received Royal Assent, marking a significant legislative milestone that allows it to become law. This development introduces a series of transformative measures designed to support families on benefits and those with working parents, with changes encompassing childcare, benefit rules, and free school meals.
Scrapping the Two-Child Limit: A Major Change
One of the most impactful changes in the Bill is the abolition of the two-child limit. Previously, families on Universal Credit could only claim the child element for their first two eligible children. Under the new law, this restriction is removed, enabling claims for every eligible child in their care. This change, coupled with benefit rate increases scheduled for April, could result in some families receiving an additional £300 per month. The Government estimates that up to 1.5 million children across Great Britain could benefit from this policy shift, with a particular focus on assisting working families.
The implementation is set for April 6, 2026. Families already receiving Universal Credit will see these changes applied automatically, requiring no action on their part. This move is intended to directly reduce child poverty by providing greater financial support to households.
Additional Measures and Broader Impact
Beyond scrapping the two-child limit, the Bill includes other key provisions:
- Extending childcare support for working parents to alleviate financial burdens.
- Expanding the free school meals programme to ensure more children have access to nutritious food.
These measures are part of the Government's comprehensive plan to dismantle barriers for children in lower-income households, with an ambitious goal of lifting 450,000 children out of poverty before the end of the current Parliament. This initiative responds to alarming Government figures revealing that 2.6 million children in the UK lack sufficient food at home, and over 172,000 are without a permanent residence.
Government and Advocacy Reactions
Secretary of State for Work and Pensions, Pat McFadden, hailed the day as historic, stating it marks a turning point for 450,000 children across Britain. He emphasized that scrapping the two-child limit is not just about immediate family finances but about building a better future, as children growing up in poverty are more likely to leave school without qualifications and face unemployment or disengagement in young adulthood.
Abigail Wood, CEO of Gingerbread, welcomed the change, noting that the two-child limit had unfairly pushed children into poverty and punished single parents. Similarly, Sara Ogilvie, Director of Policy, Rights and Advocacy at Child Poverty Action Group, called the abolition an important first step in driving down child poverty, laying foundations for a stronger country.
Minister for Employment, Dame Diana Johnson, added that the two-child limit had long held children back through no fault of their own, and the law change will provide greater security and opportunity for hundreds of thousands of children.
Background and Expected Ripple Effects
The two-child limit was originally introduced after the 2015 general election to achieve savings in the welfare system and align financial choices for households on benefits with those of working households. As of April last year, approximately 483,000 families were affected by this limit, with Government figures estimating that 300,000 children lived in relative poverty as a result.
The changes are expected to have far-reaching effects beyond immediate financial relief. Government data indicates that children in the poorest areas are more susceptible to mental health issues, obesity, tooth decay, and academic struggles due to hunger and inadequate housing. By addressing poverty, the Bill aims to improve GCSE results, increase employment prospects, and reduce income disparities, as children from impoverished backgrounds currently earn about 50% less by age 40 compared to their more educated peers.
Overall, the Child Poverty Bill represents a pivotal shift in social policy, with the potential to leave families up to £3,650 better off annually and foster long-term positive outcomes in health, education, and employment across the UK.
