The UK's two-child benefit limit: examining poverty impacts, incentives, and policy choices for the next government
By
Eduin Latimer, Tom Waters
Summary
This article examines the UK's 'two-child limit' policy on universal credit and child tax credit, which denies additional payments for third or subsequent children born after April 2017. It analyzes the policy's impact on low-income families, the financial incentives and disincentives created, and the political debate surrounding it. The piece explores the fiscal costs, poverty implications, and policy options facing the next UK government, including potential abolition by Labour, Liberal Democrats, or the Green Party.
Source
bskyThe UK's two-child benefit limit: examining poverty impacts, incentives, and policy choices for the next governmentifs.org.ukKey quotes
· 3 pulledLow-income families typically receive an additional £3,455 a year of universal credit (or child tax credit) for each child they have.
The 'two-child limit' means that claimants do not receive an additional amount for third or subsequent children born after 5 April 2017.
The Liberal Democrats and Green Party have both committed to abolishing the limit in their manifestos, while the Labour Party have said they will abolish it 'when fiscal conditions allow'.
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