Reeves to Lift UK’s Two-Child Benefit Cap at November Budget (1)

Sept. 30, 2025, 5:13 PM UTC

Chancellor of the Exchequer Rachel Reeves will scrap a cap limiting family welfare payments to two children in November’s budget, according to a person familiar with the matter.

The Treasury is exploring options including expanding eligibility for universal credit and child tax credit to three or four children, or whether the payments could be tapered so they decrease for subsequent children, according to the person, who spoke on condition of anonymity about a plan that hasn’t yet been announced.

The move toward more generous family benefits is an attempt by Prime Minister Keir Starmer to dispel criticism from many in ...

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