In 2017, the UK implemented the two-child limit (2CL) policy. Under this policy, families are no longer eligible for additional Universal Credit or Tax Credit allowances for their third and subsequent children if they were born after 6 April 2017. This policy impacts a significant number of households across the UK, resulting in a noteworthy reduction in family income.
As of April 2023, approximately 1.5 million children live in households affected by the 2CL, leading to an estimated annual financial loss of up to £3,235 per child for affected families. This is expected to rise to £3,455 per child in 2024-2025.
