Benefit cap hits 50,000 families after two‑child limit removed
The Department for Work and Pensions reports that 50,000 families will see no benefit increase after the two‑child cap was removed, while 165,000 families are already capped, taking an average £80 off their Universal Credit. The cap, frozen for four years, has left 370,000 children in households fa…
By Felo News Desk · Published
In a recent release, the Department for Work and Pensions (DWP) confirmed that the removal of the two‑child benefit cap in April 2026 has left 50,000 families with no increase in their Universal Credit payments. The policy change, coupled with the current year’s above‑inflation rise to basic Universal Credit, has pushed the number of families already subject to the cap to 165,000, an increase of 53,000 from February 2026 – a 48 per cent jump.
What the Benefit Cap Means for Families
The benefit cap limits the total amount of money households can receive from the DWP. For most couples or single claimants with children, the cap sits at £1,835 a month (£22,020 a year). In Greater London the threshold is higher, at £2,110.25 a month (£25,323 a year). The cap has been frozen for the 2026/27 fiscal year, marking the fourth consecutive year it will not rise in line with inflation. No plans have been announced to adjust it for inflation, unlike most other benefits.
Under the cap, households that would otherwise receive higher Universal Credit payments are forced to pay the difference out of pocket. The DWP’s latest figures show that families already at the cap are losing an average of £80 per month. With the removal of the two‑child limit, an additional 20,000 families are expected to see only a partial increase in their benefits, as the policy now allows more children to be counted for the cap but does not raise the cap itself.
Impact on Children and Poverty Levels
Official data indicates that around 370,000 children live in households that are now subject to the government‑imposed cap. Experts warn that this has pushed many families into deep poverty, with children facing food insecurity, inadequate heating, and insufficient clothing. The basic rate of Universal Credit for a single adult aged 25 or over is just £98 a week – far below the cost of essentials such as food and energy. When debt repayments and the cap are added, the effective support can drop even further.
Senior policy adviser Iain Porter of the Joseph Rowntree Foundation (JRF) highlighted the severe consequences: “Children should not be going without essentials because the Government is taking away support their families have already been assessed as needing.” Porter called for a protected minimum floor within Universal Credit to limit how much payments can be reduced by the cap.
Government Response and Future Review
A DWP spokesperson defended the policy, stating that removing the two‑child limit is part of a broader strategy to tackle poverty. The government has introduced measures such as free school meals, expanded childcare, and a £1bn Crisis and Resilience Fund to help prevent families from falling into poverty. The spokesperson described the cap as a “targeted, proportionate measure” that encourages personal responsibility while maintaining a safety net for those who need it most.
There is a statutory obligation for the government to review the benefit cap every five years, with the next review scheduled for November 2027. Ministers can, however, review the cap at any point. The current freeze and the removal of the two‑child limit have sparked debate over whether the cap should be adjusted to reflect inflation and the rising cost of living.
What Happens Next?
As the DWP prepares for the November 2027 review, families and advocacy groups are calling for a rapid response to the immediate hardship caused by the cap. The government’s next steps will likely involve a reassessment of the cap’s level and the potential introduction of a protected floor for Universal Credit. Until then, the 50,000 families who received no benefit increase and the 165,000 already capped will continue to face financial strain.
For now, the focus remains on ensuring that children in affected households receive adequate support through existing programs while the policy debate continues. The outcome of the upcoming review will be critical in determining whether the cap will be adjusted to better align with inflation and the real cost of living.
Key facts
- 50,000 families see no benefit increase after two‑child cap removal
- 165,000 families already capped, losing an average £80/month
- 370,000 children live in households affected by the cap
- Cap frozen for 2026/27, no inflation adjustment
- Next statutory review due November 2027
- Calls for a protected minimum floor within Universal Credit
Why it matters
The benefit cap directly limits the financial support families receive, pushing many children into deep poverty and highlighting the need for policy reforms to protect vulnerable households.
Frequently asked questions
What is the benefit cap?
The benefit cap limits the total amount of money households can receive from the Department for Work and Pensions, regardless of the number of benefits claimed.
How many families are affected by the cap?
According to the latest DWP data, 165,000 families are already subject to the cap, and an additional 50,000 families will see no benefit increase after the removal of the two‑child limit.
When will the cap be reviewed again?
The statutory review is scheduled for November 2027, but ministers can review it at any time.
What measures are in place to help families?
The government has introduced free school meals, expanded childcare, and a £1bn Crisis and Resilience Fund to support families.
Sources
- [1] independent.co.uk — originally reported as “50,000 more families hit by benefit deductions after two-child cap removed”
