London, December 09, 2025
The UK government’s decision to remove the two-child limit on Universal Credit is set to reduce child poverty by up to 550,000 children by 2030, marking a crucial policy shift amid calls for more comprehensive measures to tackle lingering poverty.
The Two-Child Limit Policy Lifted
The two-child limit, a policy restricting benefits payments to only the first two children in a family, has been abolished under the government’s latest Child Poverty Strategy published in December 2025. As a result, families will receive benefits for all children regardless of family size, a move aimed at improving incomes for millions and addressing deep child poverty.
Projected Impact on Child Poverty
Experts estimate this policy change could lift approximately 450,000 to 550,000 children out of poverty by 2030. Many families experiencing severe financial hardship are expected to benefit substantially, improving their living standards and economic security.
Continued Challenges Remain
Despite the positive shift, an estimated 4 million children are projected to remain in poverty even after the reforms take effect. Charities and policy experts warn that current government plans lack the ambition and scale required to eradicate child poverty fully. Additional steps will be essential to create meaningful, lasting change.
Calls for Additional Measures
Advocates urge the government to implement a “protected minimum floor” within Universal Credit, halt proposed cuts to disability benefits, and expand support through free school meals, childcare services, and stronger local support networks. These supplementary actions aim to address systemic causes of poverty beyond the benefit cap removal.
Labour’s Mandate for Greater Ambition
In a recent editorial, The Guardian emphasized that while removing the two-child limit is a critical first step, Labour must pursue more ambitious policies. These include systemic reforms that boost family incomes further, reduce living costs, and enhance local support systems to tackle child poverty holistically.
The removal of the two-child limit signifies vital progress in the UK’s fight against child poverty, but policymakers and stakeholders agree it is far from a comprehensive solution. The coming years will require sustained and broader efforts to ensure a future where no child grows up in poverty.