Universal Credit (Removal of Two Child Limit) Bill: Second Reading

On Tuesday 3 February 2026, the Universal Credit (Removal of Two-Child Limit) Bill had its Second Reading in the House of Commons.

The previous Government introduced the two-child limit on Universal Credit (UC). Its effect was to push more children into poverty. From 2010, the number of children in poverty rose by 900,000, reaching 4.5 million in 2024.

This Bill will lift 450,000 children out of poverty by abolishing the two-child limit. This is being funded responsibly through a combination of savings from fraud and error in the benefits system, changes to the Motability scheme and reform of online gambling taxation.

Removing the two-child limit is the single most effective and immediate way to reduce child poverty. It will make sure the social security system is there for those who need it, even when circumstances change, and, importantly, the majority of children who will benefit live in working households.