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Universal Credit (Removal of Two Child Limit) Bill [HL]

A Bill to remove the limit on the number of children or qualifying young persons included in the calculation of an award of universal credit.

Originating House

House of Lords

Parliament last updated

31 October 2023

In Plain English

AI-generatedMay be outdated

May contain errors — check source documents for definitive information.

The bill would remove the two-child limit used to calculate universal credit (and, as explained in official notes, tax credits) so families with three or more children aren’t capped in benefit calculations. It has been debated in the Lords for several years and is currently at the third reading, with broad cross‑party support in the chamber but notable opposition from the Conservative party in voting.

Key Points

  • The two-child limit (introduced by the Welfare Reform and Work Act 2016) restricts benefit amounts for third and subsequent children in Universal Credit and tax credits.
  • The Bill would remove this limit, allowing all children in a family to be counted in benefit calculations.
  • Official notes clarify that the two-child limit also applies to tax credits, and that the government described the limit as fair based on 2012 family size data.
  • The bill has undergone Lords scrutiny since 2022, including a discharge of the Order of Commitment in 2022 and a Select Committee process, with a government letter in 2022 correcting data misstatements.
  • Parliamentary votes in the Lords show broad cross-party support for the bill, with opposition mainly from the Conservative party and a small number of others.

Progress

Originating in the Lords, the bill has a lengthy passage with a discharge of the Order of Commitment in 2022, a Select Committee review, and third-reading stage. Latest recorded votes in the Lords show substantial cross-party support, though Conservative peers largely opposed.

Voting

Second Reading: 458 Aye, 104 No; Third Reading: 361 Aye, 84 No. Across parties, Labour, Lib Dem, SNP, Plaid Cymru, and others supported the bill; Conservative peers opposed (and a small number of other minor groups also opposed). Sinn Féin and some smaller groups registered mixed or no votes in the official tallies provided.

Who is affected?

Families with three or more childrenHouseholds claiming Universal CreditHouseholds claiming tax creditsLow-income and working-poor familiesSingle-parent familiesCarers and households sensitive to benefit calculations

Generated 21 February 2026

Bill Stages

1st readingLords

23 May 2022

2nd readingLords

8 Jul 2022

Order of Commitment dischargedLords

26 Oct 2022

3rd readingLords

24 Mar 2023

1st readingCommons
2nd readingCommons
Committee stageCommons
Report stageCommons
3rd readingCommons
Royal Assent

How Parties Are Voting

Based on 2 recorded votes • Sorted by % Aye

Labour (Co-op)Generally For
641 / 0
Liberal DemocratGenerally For
115 / 0
Scottish National PartyGenerally For
14 / 0
Plaid CymruGenerally For
8 / 0
Democratic Unionist PartyGenerally For
7 / 0
Green PartyGenerally For
7 / 0
Social Democratic & Labour PartyGenerally For
4 / 0
Ulster Unionist PartyGenerally For
2 / 0
Your PartyGenerally For
2 / 0
AllianceGenerally For
1 / 0
IndependentGenerally For
15 / 2
Reform UKGenerally Against
2 / 7
ConservativeGenerally Against
0 / 178
Restore BritainGenerally Against
0 / 1
Sinn FéinMixed
0 / 0
Traditional Unionist VoiceMixed
0 / 0
SpeakerMixed
0 / 0

Updates & Documents

News (1)

Universal Credit (Removal of Two Child Limit) Bill - news

2 May 2023

The 2022-2023 session of Parliament has prorogued and this bill will make no further progress.  

Documents (4)

Letter from Baroness Stedman-Scott to Baroness Sherlock regarding a question raised in the Bill second reading debate: the rationale for the Government decision to provide support for a maximum of two children, brought in by the Welfare Reform and Work Act 2016.
Will write lettersUnassigned

The letter explains that the two-child limit for support under tax credits and Universal Credit, introduced by the Welfare Reform and Work Act 2016, was considered fair and proportionate because the 2012 UK average family size was 1.7 children (per ONS). It also corrects a misstatement about the Nuffield Foundation study on fertility and child benefits, noting it was published in April 2022, not July 2022.

26 Jul 2022
Universal Credit (Removal of Two Child Limit) Bill [HL]
Briefing papersLords
22 Jun 2022
4th Report of the Delegated Powers and Regulatory Reform Committee
Select Committee reportLords
16 Jun 2022
HL Bill 7 (as introduced)
BillLords
23 May 2022

Parliamentary Votes (2)