Chancellor Rachel Reeves has confirmed the removal of the two-child limit within universal credit (UC) from April 2026, which is set to increase rent support for larger families.
The policy previously restricted the UC child element, worth £3,500 per year for second and subsequent children, to two children per family unless exemptions applied.
The change will cost £2.3bn in 2026-27 and £3.0bn in 2029-30, including £300m for an estimated 25,000 extra families expected to claim UC as a result.
An estimated 560,000 families are set to see their universal credit award increase by an average of £5,310 per year by 2029-30.
The Government expects this to reduce child poverty by 450,000 by the same year compared to keeping the two-child limit.
The removal will also mean higher housing benefit for tenants with more than two children, making it easier for them to pay rent.
This is expected to improve rent stability for landlords, particularly those letting larger family homes.
