The government’s decision to lift the two-child cap on welfare benefit income marks one of the most significant changes to the social security system in a decade.

The policy has caused the families of more than 1.6 million children to be deprived of income, pushing child poverty to record highs. It also disproportionately affected families in parts of the country already facing the greatest economic strain including Hyndburn and the North West of England.

Research by the London School of Economics has shown that the policy has failed to reduce family sizes, one of the stated objectives when the policy was introduced in 2017. Instead, it has had the effect of pushing more children into poverty and reducing their life chances.               

Families affected by this policy were up to £3,235 per year per child worse off compared to families with children born before April 2017. According to data from the End Child Poverty Coalition: 

• Approximately 960 households and 4,240 children (22% of all children) in Hyndburn were affected by the benefit cap.
• Research suggests a strong link between the cap and child poverty in the area, with 41.6% of children in Hyndburn estimated to be living in poverty.

For families claiming Universal Credit (UC), the two-child limit has been removed from 6 April 2026. This will increase payments for many families already in receipt of UC, with more than two children.

As a result of the removal of the cap, the Hyndburn, is expected to see 3,700 children lifted out of poverty, giving them a more equal start in life. By putting money into the pockets of local people, the local economy will also be strengthened and pressure on local services will be eased.