DWP figures show two-child limit now affects 130,000 disabled kids

The Department for Work and Pensions (DWP) two-child limit is now hitting more kids and families than ever before. This is the stark reality from the latest official data, released on Tuesday 29 July. It shows more urgently than ever the need for the policy to be scrapped. Yet it is clear Labour is not going to do this – despite new figures showing nearly 130,000 disabled children are being hit by the policy.

The two-child limit: a ruinous policy

The DWP two-child limit, which came into effect on 6 April 2017, restricts households from claiming child tax credits or Universal Credit for more than two children, including those born after the policy’s introduction.

The Child Poverty Action Group’s recent research says that 350,000 children could be lifted out of poverty immediately if the limit were to be abolished, at a projected cost of £2bn. Furthermore, the study highlights that the policy is fostering an increase in family hardship, with an estimated 109 additional children being pulled into poverty daily as a direct consequence.

Another study put the figure of children that scrapping the cap could lift out of poverty nearer 600,000.

Yet the two-child limit does not operate in a vacuum; a so-called “rape clause” creates exemptions for children born as a result of non-consensual conception, a feature that has drawn considerable criticism and controversy since it was rolled into the policy. Critics argue that such provisions do little to alleviate the suffering caused by the overarching restrictions of the two-child limit.

The implications of the DWP two-child limit are far-reaching, affecting families across all regions of the UK. The policy will continue to impact an increasing number of families until 2035 when the first children born under its restrictions will reach adulthood. Yet Labour has maintained it – even expelling MPs who voted against keeping it.

Meanwhile, the Scottish government has vowed to bring an end to the two-child limit by April 2026, aiming to mitigate its adverse effects on families in Scotland.

Yet none of this is sufficient – as the latest figures show.

The DWP: punishing parents and children

The DWP has released the latest data on the two-child limit. It has found that, as of April 2025:

469,780 Universal Credit households were affected by the two child limit policy. This was an increase of 13,520 (3%) on last year.
There were 1,665,540 children living in the households affected in April 2025, an increase of 37,150 (2%) on last year.

Just over half (54%) of households affected by the DWP two-child limit are single households and just under half (46%) are couple households. Most households affected (63%) had three children, 25% had four children, 8% had five children and 4% of households had six or more children.

Over half (59%) of households affected are in work – a damning figure given Labour’s obsession with benefit claimants having to work to make themselves better off. As always with the DWP, the policy is inherently misogynistic – as 98% of households affected had at least one female claimant, versus 47% with at least one male claimant. Black and brown people were disproportionately affected, too.

Perhaps worst of all is that 38,200 (8%) of households affected by the two-child limit policy are also affected by the benefit cap. There are a total of 141,290 children living in those households.

On top of that, 129,630 (28%) of households affected by the two child limit policy had at least one child that is disabled and qualifies for an extra monthly amount of Universal Credit disabled child element. There are a total of 479,460 children living in those households.

Overall, 189,480 (40%) of households affected by the two child limit policy had at least one disabled person in them.

Systemic discrimination

So, in short the DWP two-child limit is affecting more families – and children – than ever. But it’s the fact that it hits children already in poverty as well as disabled people, the hardest, that really sticks in the throat.

It is well within the Labour government’s power to scrap it altogether. But it has made clear it won’t (after saying it might) – showing exactly where its priorities lie. And they’re not with the countries poorest children.

Featured image via the Canary