The government has confirmed that the two-child benefit cap has been scrapped, marking one of the most significant welfare changes in recent years. For thousands of families across the UK, this decision brings long-awaited relief — financially, practically and emotionally.
The change also has major implications for families raising children with Special Educational Needs and Disabilities (SEND), many of whom were disproportionately impacted by the cap.
This article explains what the two-child cap was, why its removal matters, and what parents can expect next.
What Was the Two-Child Cap?
Introduced in April 2017, the two-child limit restricted the child element of Universal Credit and Child Tax Credit to the first two children in a family.
Any third or subsequent child born after the rule came into force did not receive financial support through these benefits, unless the family qualified for a limited number of exemptions (such as the controversial “non-consensual conception” clause).
For many households, this meant losing around £3,000 per year per child — a significant financial burden at a time when the cost of living has risen sharply.
Why Has the Cap Been Scrapped?
The cap has long been criticised by economists, children’s charities and independent organisations such as the Joseph Rowntree Foundation for directly increasing child poverty.
Removing it is expected to:
- reduce child poverty rates nationwide
- increase support for low-income families
- restore fairness to the benefits system
- support long-term outcomes for children in education and health
The OBR has estimated that scrapping the cap will cost the government around £3–3.5 billion by 2029/30, but the social and economic benefits of lifting families out of poverty could outweigh this cost in the long term.
What This Means for Families Immediately
With the cap removed, all children in a household will once again be counted when calculating the child element of Universal Credit or Child Tax Credit.
Parents with three or more children can expect to see a notable increase in their benefits as payments adjust to include every child.
This change applies to:
- families currently receiving Universal Credit
- families receiving Tax Credits
- families who previously weren’t receiving support for later-born children
- families with children born after 2017 who were excluded by the cap
For many, this will mean hundreds of pounds more each month, depending on the size of the household and the benefits they’re eligible for.
Why This Matters Even More for SEND Families
SEND households face some of the highest financial pressures in the country. Many experience:
- reduced ability to work due to caring responsibilities
- higher weekly costs for care, transport and therapies
- additional spending on equipment, clothing and sensory items
- long waiting lists for support that force parents to pay privately
- periods of crisis when schools cannot meet their child’s needs
A large proportion of SEND families have three or more children — often because the first signs of a child’s disability may not be visible until later, or because family planning decisions were made long before diagnoses.
The two-child cap disproportionately harmed these families by reducing the support available to siblings of disabled children and forcing parents into deeper financial stress.
Its removal will provide:
- essential breathing room in stretched budgets
- improved quality of life for children and carers
- better ability to cover rising SEND-related costs
- reduced reliance on food banks and emergency support
- greater stability for families already under strain
While it won’t fix systemic issues in SEND provision, it does help protect families from the worst financial impacts during a period of national funding pressure.
What Parents Should Do Now
- Check your Universal Credit journal
Payments should adjust automatically, but you may receive messages asking for confirmation of your household details. - Update any changes to your children’s information
Make sure all children are listed correctly on your claim. - If you’re on Tax Credits, HMRC will notify you when the additional support has been applied.
- Use benefit calculators (Turn2Us, EntitledTo) to estimate what your new payments will be.
- If you’ve avoided claiming before, now is the time to check if you’re eligible. Many families who thought they would receive little to nothing may now qualify for substantial support.
Conclusion
Scrapping the two-child benefit cap is a major shift in UK welfare policy — and an important step towards supporting families fairly. For SEND families, the change couldn’t be more significant. It restores essential financial support at a time when household costs, service delays and educational barriers continue to rise.
While the Budget leaves many unanswered questions about the future of SEND funding, this reform brings meaningful relief to families who need it most.
AskEllie will continue to monitor all Budget changes and break down exactly how they affect parents, carers and children with SEND.
Leave a Reply