July 2024 – The UK’s two-child benefit cap has recently been in the spotlight, with seven Labour MPs suspended for six months after voting against the government and advocating for its removal. Here, we outline the position of Population Matters on this issue. 

The background 

The two-child benefit cap was introduced in the UK in April 2017. It means families are not able to claim Universal Credit or Tax Credits for any child beyond their first two. According to the Institute for Fiscal Studies, the policy costs low-income families an average of £4,300 per year.   

Where we stand 

Population Matters does not support any policy that makes the lives of children harder. Reversing the cap could make an immediate material difference to around 500,000 children, taking them out of relative poverty, according to Save the Children. We believe that no child deserves to be penalised.  

While the policy has increased poverty and hardship, there is little evidence that it has had any significant impact on birth rates. Mary Reader, Research Officer at the Centre for Analysis of Social Exclusion at the London School of Economics (LSE) said: 

“This research shows that the ostensible rationale behind the two-child limit is fundamentally flawed. The policy assumed that cutting child-related benefits for low-income families would disincentivise families from having more than two children. But our research shows that fertility has declined only slightly.” 

Population Matters’ Values 

The values at the centre of Population Matters’ mission are compassion, equality for all and the right to choose. The UK’s two-child benefit cap is not consistent with any of these values; therefore, we do not support the policy.