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UK Parliament · Bill

Universal Credit (Removal of Two Child Limit) Act 2026

Summary

This bill removes the 'two child limit' policy from Universal Credit, a benefit that currently restricts payments to the first two children in a household. Under current rules, families with three or more children receive no additional Universal Credit for children born after 1 January 2017. The bill would allow all children in a household to qualify for child support payments through Universal Credit, regardless of birth order. This change would increase benefit payments to larger families who meet the eligibility criteria.

A vote to support means

  • Reduces child poverty in larger families by providing financial support for all children, not just the first two, helping to meet basic needs like food, clothing, and housing
  • Removes a policy that critics argue penalises families for having children and contradicts the principle of supporting all children equally regardless of family size
  • Addresses the particular financial strain on low-income families with three or more children, who currently face a significant 'cliff edge' in support when a third child is born
  • Improves outcomes for children's health, education, and development by increasing household income in families that would benefit from additional support

A vote to oppose means

  • Represents a significant increase in public spending on welfare benefits at a time when government finances are constrained, requiring either tax rises or cuts to other public services
  • May have unintended consequences on family planning decisions or work incentives if the benefit is perceived as an unconditional payment rather than support for those in genuine need
  • Could be viewed as unfairly benefiting families who chose to have more children while other households without children or with fewer children receive no additional support
  • Does not address underlying causes of poverty and may be less cost-effective than alternative policies such as raising wages, expanding childcare support, or targeting help to the most vulnerable families

Cast Your Vote

People's Vote1,969 votes
7% Support · 13293% Oppose · 1,837

Bill Passage

Commons

  • 1st reading8 Jan 2026
  • 2nd reading3 Feb 2026
  • 3rd reading23 Feb 2026

Lords

  • 1st reading24 Feb 2026
  • 2nd reading12 Mar 2026
  • 3rd reading12 Mar 2026
Royal Assent18 Mar 2026
Full Bill Description(click to expand)

No description available