Historic legislation to abolish the two-child limit has officially become law, marking a significant shift in the UK Government's approach to tackling child poverty.

The policy change is projected to place 450,000 children on a pathway out of poverty during the final year of the current Parliament and follows the Universal Credit (Removal of Two Child Limit Act) receiving Royal Assent on 18 March 2026.

Since 2017, the two-child limit has restricted Universal Credit and Child Tax Credit support to a family's first two children. Currently, 2.6 million children in the UK face food insecurity at home, and over 172,000 are without permanent housing. Data also indicates that babies born in the most impoverished areas are twice as likely to die before their first birthday. The removal of this limit is identified as the most cost-effective measure available to reduce these poverty rates, with up to 1.5 million children across Great Britain expected to benefit. The change will primarily assist working families, as approximately 60% of households affected by the limit have at least one parent in employment. The reform is a central pillar of the wider Child Poverty Strategy, which includes expanding free school meals and extending childcare support to lift a total of 550,000 children out of poverty by the end of this parliament.

Secretary of State for Work and Pensions Pat McFadden said: "Today is an historic day, marking a turning point for 450,000 children across Britain. Scrapping the two-child limit is about more than family finances today, it's about the Britain we're building for tomorrow."

He added: "Children growing up in poverty are far more likely to leave school without qualifications and end up not in work or education as young adults, and we're determined to break that cycle once and for all and give every child the best start in life."

Minister for Employment Dame Diana Johnson commented: "For too long, the two-child limit has held children back through no fault of their own. With the law now changed, hundreds of thousands of children will grow up with greater security and opportunity."

The restriction will be officially lifted on 6 April 2026. Families currently claiming Universal Credit will have the update applied automatically and do not need to take any action. This measure coincides with broader government efforts to manage living costs, including freezing prescription and rail charges and increasing the National Living Wage.