Universal Credit (Removal of Two Child Limit) Bill

Key Points

• Removes the two-child cap on the UC child element, extending support to families with three or more children (with specified exceptions).
• Applies to GB assessment periods from 6 April 2026; separate provisions for England, Wales and Scotland, plus Northern Ireland via a corresponding provision after NI consent was granted.
• Estimated GB cost around £3.0 billion in 2029/30, reflecting the policy’s expected fiscal impact as part of the child poverty strategy.
• Parliamentary scrutiny included several proposed amendments to require impact assessments (on effects for households, disabled families, child poverty and broader outcomes); these assessment-focused amendments were not adopted.
• Several amendments sought to delete Clause 1 or Clause 2 (which would remove the Bill’s main policy), but these attempts were not carried; NI extension to NI was approved via a Legislative Consent Motion.

Progress

The bill sits at the Lords’ 3rd Reading after passing the Commons. A Lords committee debated amendments to require impact assessments, but those proposals were defeated. The Northern Ireland extension has been agreed, allowing NI participation; the bill is on track for further parliamentary stages and potential enactment.

Voting

In the Lords, a key amendment proposing extra impact assessments (New Clause 3) was defeated (ayes 73, noes 256). Across parties, there was broad cross-party support for removing the two-child limit, though Labour (Co-op) opposed the measure itself, and several amendments proposing additional assessments were not accepted.