A REPORT BY THE CHILD POVERTY ACTION GROUP
Seven years after the introduction of the two-child limit, there are almost 1.6 million children in 440,000 families affected by the policy. These families are missing out on up to £3,455 a year per child.
The two-child limit restricts support through universal credit (UC) or child tax credit to the first two children in a family, for children born after 6 April 2017.
Parents having a third or subsequent child after that date are not eligible for support for that child.
The majority of families affected by the policy are living in poverty, despite 59 per cent of these families having one or both parents in paid work.
Affected families report not being able to provide for children’s basic needs, including food, clothing and heating. The policy also means families struggle to pay for housing and childcare.
The policy affects every area of children’s lives. Parents report that children’s education, mental health, and learning and development are all negatively affected by the two-child limit.
Children are also missing out on the ‘everyday’ experiences of childhood such as days out with their family, being able to go on holiday, or having the occasional treat such as an ice cream.
Abolishing the two-child limit is the most cost-effective way to reduce child poverty, and the most urgent action the government must take to reduce child poverty.
It would lift 300,000 children out of poverty and mean 700,000 children are in less deep poverty, making a significant difference to the lives of over a million children at a cost of £1.7 billion.
The two-child limit will continue to drive up poverty as more children are born. Child poverty is already at a record high, with 4.3 million children in poverty in the UK today.
This means in an average classroom of 30, nine children are living in poverty.
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