DWP benefits warning as two-child cap to hit extra 670,000 children

The Institute for Fiscal Studies has issued a warning that the number of children impacted by the two-child benefit cap will increase by a third over the next five years. The restriction currently affects two million children, with more affected each year as it applies to those born after 5 April 2017.

The cap's introduction has significantly impacted the poverty rates among large families, with the share of children in relative poverty jumping from 35% in 2014-15 to 46% in 2022-23, according to the IFS. This increase comes at a time when poverty rates for smaller families have decreased, reports Wales Online.

Mubin Haq, CEO of the abrdn Financial Fairness Trust, which sponsored the study, commented: "The limit has been a significant contributor to child poverty amongst large families during a period when poverty for families with one or two children fell. If the next government is serious about tackling child poverty, it will need to review the two-child limit."

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