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Universal Credit Update on DWP Scrapping Two-Child Benefit Cap for Parents

  • On Tuesday, MPs in the House of Commons will debate and vote on the Universal Credit Bill, which Conservatives plan to oppose at second reading, with further scrutiny by peers before becoming law.
  • Supporters argue the change will cut child poverty, with Joseph Rowntree Foundation analysis showing around 400,000 fewer children in poverty and last year Chancellor Rachel Reeves abolished the cap to lift some 450,000 children out of poverty.
  • Analysts point to large fiscal costs, noting the Office for Budget Responsibility estimates �3 billion a year by 2029/30 and �14 billion over five years, with nearly half going to households where no one is in work receiving average payout �25,000.
  • Several parties including the Lib Dems, Reform UK, the Greens, Plaid and the SNP support scrapping the cap, while social media critics react angrily to linking it with a 5p pint cut, with some saying children could go hungry.
  • The Centre for Social Justice found around 6.2 million full‑time workers would now be better off on benefits than in work once tax is considered, raising long-term poverty and incentive concerns.
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The Sun broke the news in United Kingdom on Monday, February 2, 2026.
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