The two-child cap on child benefit and Universal Credit could be scrapped
The government is considering removing the child benefit cap in a move that could provide families with an annual boost of £3,200.
At present, those on Universal Credit and in employment can receive up to 85 percent of their childcare costs, equating to £1,014.63 a month for one child and £1,739.73 for two children. However, this does not increase for a third child or more. The report stated: "In 2023-24, families capped by the two-child limit lose up to around £3,200 a year in benefit support for their third and each subsequent child. Although a range of different families are affected by the two-child limit, disadvantaged groups are disproportionately represented: almost half of the households affected by the two-child limit are single parent families, for example.
She further noted that such a move would be "very expensive" and would need to be evaluated as "one of a number of levers in terms of how we make sure we lift children out of poverty".
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