CHILD'S PAY
Full list of benefits not affected by two-child rule – as government mulls axing cap
Plus, we've explained how to check if you're eligible for extra support
PARENTS may still be eligible to claim thousands of pounds in support despite the two-child benefit cap, as pressure mounts on ministers to abolish the policy.
Here is everything you need to know.
1
WHAT IS THE TWO CHILD CAP?
The rule, which limits child-related payments in Universal Credit and to just two children per household, doesn’t apply to all benefits.
It means families with three or more kids may still be missing out on cash they’re eligible for.
Prime Minister Sir Keir Starmer yesterday refused to rule out scrapping the rule, which currently limits benefit payments to two children per household for Universal Credit and tax credits.
It means that families can miss out on up to £3,455 a year for a third or later child born after April 2017.
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The policy, introduced in a bid to keep welfare spending in check, has faced criticism from some MPs and campaigners.
But scrapping the cap could cost the Treasury around £3billion annually, and would likely require new tax rises or spending cuts elsewhere to fund.
Visiting a factory in Warrington, the PM said he was “determined to drive down child poverty” but stopped short of making a firm commitment.
Asked repeatedly whether the rule would go, Sir Keir said ministers were "looking at all options".
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While the cap still applies to some benefits, others remain unaffected – and families may still be eligible for support depending on their circumstances.
Here’s the full breakdown.
Three key benefits that YOU could be missing out on, and one even gives you a free TV Licence
CHILD BENEFIT
This universal benefit is paid for every child, regardless of how many you have.
- £25.60 a week for the first child
- £16.95 a week for each additional child
If you are claiming child benefit for a child under 12, you also receive National Insurance (NI) credits.
Child Benefit also comes with National Insurance credits, which count towards your State Pension.
Note: If you or your partner earn over £60,000, you may be liable for the High Income Child Benefit Charge, which can reduce or eliminate the payment.
How do I claim child benefits?
APPLYING is straightforward and can be done in minutes at gov.uk or through the HMRC app.
Parents with a newborn baby should make a claim online as soon as possible and could then receive their first payment in as little as three days.
You can also backdate claims for up to three months.
Parents can make a claim and then choose to opt out of receiving Child Benefit payments can still receive National Insurance credits if one parent is not working.
National Insurance credits build up your entitlement to the state pension.
DISABILITY LIVING ALLOWANCE (DLA)
DLA is available for children under 16 who have disabilities and require extra care or mobility support.
It’s not affected by the two-child cap, and is worth £28.70 to £184.30 a week, depending on the level of need.
Once a child turns 16, they must apply for Personal Independence Payment (PIP) instead.
PERSONAL INDEPENDENCE PAYMENT (PIP)
PIP is for people aged 16 to 64 with a long-term health condition or disability.
It is not subject to the cap, and multiple eligible individuals can claim within the same household.
The benefit is worth up to £184.30 a week for those entitled to both the daily living and mobility components.
GUARDIAN’S ALLOWANCE
This benefit is for individuals raising a child whose parents have died.
- Paid at £21.75 a week per child
- Paid in addition to Child Benefit
- Unaffected by the two-child limit
You must be claiming Child Benefit and meet the qualifying criteria around guardianship.
ADOPTION ALLOWANCE
Paid by local authorities, this benefit supports adoptive families who may face extra costs related to a child’s care needs.
There’s no cap on how many adopted children can qualify, and payments vary depending on your financial circumstances and the child’s needs.
LOCAL WELFARE SCHEMES
These include support such as:
- Discretionary Housing Payments
- The Household Support Fund
- Free school meals
These schemes are not restricted by the two-child cap, but eligibility and availability vary by council.
UNIVERSAL CREDIT EXEMPTIONS
While the child element of UC is capped, exceptions do exist, including:
- You have adopted them or other children in your household
- You receive guardian's allowance for them or other children in your household
- They are the second (or more) child born in a multiple-birth
- They or other children in your household are the offspring of one of your children who is under 16 years old
- They or other children in your household are not your child or stepchild, and you look after them under a court order
- They or other children in your household are not your child or stepchild and you look after them under an arrangement with Social Services (except for formal foster care)
- They were conceived as a result of rape, and you do not live with the perpetrator
As the government continues to review the policy, no final decision has been made — but for now, these benefits remain available outside the cap.
To check if you're eligible, visit gov.uk or speak to an independent benefits advisor.
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Who's exempt from the two-child benefit cap?
The two-child benefit cap means that you can only get more child tax credit or Universal Credit for your third (or more) child if:
- They were born before April 6, 2017
- They are disabled (disabled child element only)
- You qualify for an exception in child tax credit or special circumstances apply in Universal Credit
You qualify for an exception or special circumstances for each third (or subsequent) child if:
- You have adopted them or other children in your household
- You receive guardian's allowance for them or other children in your household
- They are the second (or more) child born in a multiple-birth
- They or other children in your household are the offspring of one of your children who is under 16 years old
- They or other children in your household are not your child or stepchild, and you look after them under a court order
- They or other children in your household are not your child or stepchild and you look after them under an arrangement with Social Services (except for formal foster care)
- They were conceived as a result of rape, and you do not live with the perpetrator
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