Thousands of families are seeing money land in their accounts for the first time as a major benefits rule is scrapped, in a move the Government says will transform lives across the UK.
The end of the two child benefit cap has officially come into force, with Prime Minister Keir Starmer declaring it proof his Government is “on the side of the British people”.
The policy, first introduced in 2017, had limited support through universal credit and child tax credit to the first two children in most households. Now, that restriction has been lifted, triggering the first wave of payments to families who were previously excluded.
Ministers say the change could lift around 450,000 children out of poverty, with many households already beginning to feel the impact.
Starmer said: “No matter the global uncertainty, my Government will always be on the side of the British people in bearing down on the cost of living.”
He added: “I will never lose sight of how restless people are for change, and I am proud that today we are lifting nearly half a million children out of poverty, boosting support for pensioners, and delivering the biggest upgrade to workers’ rights in a generation.”
The move was confirmed earlier this year by Chancellor Rachel Reeves, following months of pressure to scrap the cap.
As the first payments begin to reach bank accounts, the Prime Minister also pointed to wider pressures facing households, including global instability.
“I know families across the country are concerned about the conflict in Iran and what it means for the cost of living,” he said.
“We are working closely with international partners to push for a de-escalation in the Middle East and the re-opening of the Strait of Hormuz.
“This is the most effective way to ease the pressure on the cost of living.”
He added: “I am clear that our response to the current global situation will define us for a generation, which is why we are taking the right long-term decisions now to ensure we emerge from this as a stronger, more secure nation.”
But not everyone is convinced the changes go far enough.
Amnesty International said more sweeping reforms are needed to tackle poverty, warning many families will still struggle.
Jen Clark, from the organisation, said: “However welcome the lifting of the two-child limit is, it fails to go far enough to help the vast majority of children living in poverty in the UK.”
“The Government urgently needs to make changes to the social security system to make it fairer, particularly given the growing cost-of-living crisis.”
She added: “For decades, these policies have kept those most in need in poverty, forcing parents to choose between putting food on the table and turning the heating on.”
Meanwhile, Conservative leader Kemi Badenoch criticised the move, arguing it shifts the balance too far.
She said: “While working people struggle with rising fuel costs and food prices, Keir Starmer is giving another handout to those on benefits.”
“The Conservatives believe in fairness and that those on welfare should have to make the same choices about their family as those who aren’t.”
Alongside the change, a raft of new measures has also come into force, including improved workers’ rights, updates to sick pay, and a rise in the state pension.
Writing about the changes, Starmer described the moment as “one of the proudest” for his Government.
“Because it will lift nearly half a million children out of poverty,” he said. “It means fuller cupboards, less anxiety at the end of the month, and a fairer start in life for children who had no say in the circumstances they were born into.
“And it tells you something fundamental about this Government – when faced with a choice, we act.”
