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Universal Credit Two-Child Benefit Cap lifted after MP campaign

Following sustained pressure from MPs including Darren Jones, charitable organisations and advice agencies, the two-child benefit cap for families claiming Universal Credit has been removed. It was due to be enforced retrospectively from February 2019 for parents whose third (or more) child was born before Universal Credit was rolled out in 2017.

Darren Jones MP had previously signed a cross-party letter led by colleague Rushanara Ali, calling on the Prime Minister, Chancellor and then DWP Secretary Esther McVey to scrap the cruel two-child limit on some benefit entitlements. See the letter here: Universal Credit – Letter

Darren Jones MP said:

“I campaigned last year for the cruel two-child benefit cap (which was about to be applied retrospectively to families claiming Universal Credit (UC) with 3 or more kids prior to 2017) to be quashed.  I also campaigned for the transfer of existing claimants (of so-called Legacy Benefits) onto UC to be stopped as government admitted some claimants would be worse-off purely because of the move onto UC.

I am therefore delighted to hear the new Work and Pensions Secretary, Amber Rudd has bowed to sustained pressure and ditched plans to extend the two-child benefit cap for UC claimants (from February 2019) as planned. This cap would have affected around 15,000 families, some of which will be here in Bristol North West. This cap would have pushed many vulnerable families into further financial hardship and children born before UC existed into poverty.

Amber Rudd has also confirmed she will delay asking MPs to vote on the transfer of people onto UC and will use this time to re-assess waiting times and the roll-out.

Whilst people must consider their financial situation when planning their family, alongside many other considerations, any retrospective capping of benefits is blatantly unfair and punishes children already born.

I will continue to call upon the government to review their wider two-child benefit cap and make sure no-one is poorer because of admin changes in how their benefits are paid”.