The work and pensions secretary Esther McVey announced today that all children who are adopted will not be taken into account for the purposes of the two-child limit in tax credits and universal credit.
It follows the decision by a high court judge last week that children looked after by kinship carers will be exempt from the cap on benefits. The High Court accepted the claim brought by the Child Poverty Action Group (CPAG) on behalf of one claimant household that the two-child limit on tax credits and universal credit for families providing kinship care is unlawful.
As a result of the move by the work and pensions secretary and the high court ruling, households with adopted children and/or children being looked after by friends and family will no longer be impacted by the reform, which came into force on 6 April.
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