The Child Poverty Bill has become law with the scrapping of the two-child limit meaning families on Universal Credit can now claim for every child in their care

The Child Poverty Bill has been granted Royal Assent, paving the way for it to become law with a series of amendments designed to assist families on benefits and those with working parents. These modifications affect areas including childcare, benefit regulations, and free school meals.

A significant change in the bill is the abolition of the two-child limit. This will allow families on Universal Credit to claim the child element for every eligible child they care for, not just the first two.

Coupled with the rise in benefit rates set for April, this single change could result in some families receiving an additional £300 per month. The Government anticipates that up to 1.5 million children across Great Britain could benefit from the removal of this rule, primarily aiding those in working families.

This amendment will come into effect from April 6, 2026. Families already claiming Universal Credit will see it applied automatically and don’t need to take any action.

Other provisions in the bill include extending childcare support for working parents and broadening the free school meals programme. The bill forms part of the Government’s broader strategy to get rid of obstacles for children in lower-income households and lift 450,000 children out of poverty before the end of this Parliament, reports the Mirror.

This comes after Government data revealed that 2.6 million children in the UK lack sufficient food at home and over 172,000 have no permanent home to start with.

Pat McFadden, Secretary of State for Work and Pensions, said: “Today is an historic day, marking a turning point for 450,000 children across Britain. Scrapping the two-child limit is about more than family finances today, it’s about the Britain we’re building for tomorrow.

“Children growing up in poverty are far more likely to leave school without qualifications and end up not in work or education as young adults, and we’re determined to break that cycle once and for all and give every child the best start in life.”

The two-child limit was initially implemented following the 2015 general election to make savings in the welfare system and ensure households on benefits would face the same “financial choices” around having more children that working households had.

It is estimated that in April last year, approximately 483,000 families were being affected by the two-child limit. Government figures also estimate that 300,000 children are living in relative poverty as a result of the policy.

These changes are also expected to have a ripple effect across health services, schooling results and employment. Government figures showed children born in the poorest areas are more likely to have mental health problems and issues like obesity and tooth decay whilst also struggling at school due to hunger and unsuitable housing.

As a result, children growing up in poverty are more likely to leave school with poorer GCSE results, less likely to find work and earn around 50% less than their more educated peers by the time they reach 40.

Abigail Wood, CEO of Gingerbread, said: “Gingerbread has campaigned long and hard for the two-child limit to be scrapped. It pushed children into poverty and unfairly punished single parents. We need to see single parents and their children supported not punished. Removing the two child limit is the right thing for our government to do and we welcome this step.”

Sara Ogilvie, Director of Policy, Rights and Advocacy at Child Poverty Action Group said: “The abolition of the two-child limit by parliament is an important and welcome first step in driving down child poverty. It will give millions of children across the UK a better today and brighter tomorrow. Protecting children from poverty is the right thing to do and lays the foundations for a stronger country for us all.”

Minister for Employment, Dame Diana Johnson, said: “For too long, the two-child limit has held children back through no fault of their own. With the law now changed, hundreds of thousands of children will grow up with greater security and opportunity. We’re determined to break the link between a child’s background and their life chances and today brings us a step closer to that goal.”