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Two-child benefits cap will 'tip' 300,000 more children into poverty

Families Child Poverty
New research reveals the two-child limit under universal credit and tax credits will result in hundreds of thousands more children in poverty, once universal credit is fully rolled out in 2023-2024.

Since April 2017, third or subsequent children born into low-incomes families are no longer eligible for the child element of child tax credits and universal credit, worth £2,780 per year. Children born before the introduction of the policy are still able to claim the benefits.

The research by Child Poverty Action Group (CPAG) is based on calculations by the Institute for Public Policy Research (IPPR), which, in March, modelled the impact of the two-child policy on child poverty rates using its tax-benefit model from the 2016/17 Family Resources Survey.

CPAG says the two-child restriction has so far hit an estimated 150,000 families with children under the age of two.

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