A family in South Wales is projected to receive an additional £900 per month in welfare payments after Chancellor Rachel Reeves confirmed the removal of the contentious two-child benefit cap in the recent Budget. Lisa White, 31, and her partner David White, 35, from Monmouth, estimate their total monthly income from Universal Credit and Child Benefit will increase significantly, potentially reaching £2,770. This change comes as a massive relief for the family of seven, which has relied on state support since Mr. White was signed off work due to mental health issues. Ms. White, a mother of five who currently receives £1,990 per month from the Department for Work and Pensions (DWP), described the Labour government’s decision as being “very beneficial” for her children, allowing them to finally participate in extracurricular activities, reports The WP Times citing The Mirror.
The cap, which was originally introduced by the previous Conservative Government in 2017, restricted parents from claiming Universal Credit or tax credits for any third or subsequent child born after April 2017. The policy currently impacts over 1.5 million children across the UK. With the cost of living crisis driving grocery and utility prices to what Ms. White called "astronomical" levels, the financial boost is highly anticipated. Speaking to The Mirror, she emphasized that the policy reversal will primarily improve her children's lives, stating:
"The cap being removed will improve my kids' lives and open so much up for them... My son Marley, nine, has really wanted to do football club. Now we'll be able to pay for him to do that."
The Chancellor’s announcement confirms the cap will be abolished starting from April next year. Financial experts have begun analyzing the macroeconomic impact of this change. Matthew Parden, from the budgeting app Marygold & Co, noted that the Office for Budget Responsibility (OBR) validates that reversing welfare cuts and removing the two-child limit in Universal Credit will add approximately £3 billion to spending by 2029/30 and will specifically increase benefits for roughly 560,000 families. Mr. Parden also pointed out that the Budget's inclusion of lower household energy bills provides additional "welcome breathing room."
The decision has been broadly welcomed by anti-poverty campaigners. Thomas Lawson, CEO of the charity Turn2us, commended the move, stating that “350,000 children across the country get their childhood back.” He called the cap an “unjust policy that pushed thousands of families into years of unjust hardship.” However, Lawson cautioned that the reform is incomplete, stressing that the government's decision to retain the overall benefit cap means that thousands of the UK's poorest families will still not fully benefit from this positive change. He urged the government to make the removal of the full benefit cap the "next step" to ensure no child is left behind.
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