Scrap the two-child benefit cap

Proposed by: Councillor Howard Sykes. Seconded by: Councillor Sam Al-Hamdani.


The Two Child limit to benefit payments was introduced by the Conservative Government in 2017 and is supported by the current Labour Government. It prevents families from claiming Child Tax Credit or Universal Credit for more than two children in the household. Council notes the recent research conducted by the End Child Poverty Coalition which has found that: 

  • 1.5 million children in the UK live in households subject to the two-child limit on benefit payments. That is roughly one-in-ten children in the UK. 
  • In 2023/24 the two-child limit cost families up to £3,235 per child each year. 
  • There is a strong correlation between families affected by the two-child limit and those who are living in poverty. 
  • Scrapping the two-child limit would lift 250,000 children out of poverty overnight, and significantly reduce the level of poverty that a further 850,000 children live in. 
  • Scrapping the two-child limit would cost £1.3 billion, however it is estimated that child poverty costs the economy £39 billion each year. 

In Oldham 11,340 children in 3,160 households are currently affected by the two-child limit to benefit payments. That is 18 per cent of all children in the authority area. At the same time 27,760 local children are living in poverty. Council strongly believes that the two-child limit to benefit payments is a cruel and harmful policy that should be scrapped. Research from the University of York has shown its introduction has had no positive impacts on employment and earnings. Instead, it has dragged thousands of local families into poverty. Council notes the Liberal Democrats have consistently opposed the two-child limit to benefit payments since it was introduced – calling for it to be axed in their 2017, 2019 and 2024 manifestos. Council notes with concern the stance of the Labour Government who are committed to keeping the cap – going as far as suspending the whip from MPs who rebel against this position. Council resolves to: page two of two. 

1. Instruct the Chief Executive to write to the Chancellor of the Exchequer and the Prime Minister outlining Oldham Council’s strong belief that the two-child limit to benefit payments should be scrapped – which would help more than 11,000 children across Oldham. 

2. Further instruct the Chief Executive to write to all of Oldham’s MPs, asking them to commit their public support to the campaign to end the cruel two child limit to benefit payments. 

3. Ensure the number of children a family has is considered when a hardship grant is given out by the council. 

4. Explore ways to support families impacted by the two-child limit across Oldham Borough, including through free school meals.