Two-child limit and benefit cap at odds with commitment to end child poverty, says StepChange Debt Charity

^{10 July 2025}

New figures published by the Department for Work and Pensions (DWP) today show there were 1,665,540 children living in households affected by the two-child limit in April, up 2% year on year.

StepChange Debt Charity says the two-child limit and benefit cap is exacerbating hardship for low income families, and is at odds with the government's commitment to end child poverty.

Peter Tutton, Director of Policy, Research and Public Affairs at StepChange Debt Charity, said:

"People with dependent children are at greater risk of problem debt and financial hardship, which has only worsened in recent years as cost of living pressures have intensified. Our data show parents with more than two children are disproportionately represented among StepChange clients seeking debt advice and are significantly more likely to be behind on priority bills.

"Since the introduction of the two-child limit, the number of families with more than two children living in poverty has relentlessly increased - the Government must use the new child poverty strategy to end the policy. We're calling for a more compassionate social security system, one that helps families cover essential costs and build long-term financial resilience."

Notes to Editors

1. New DWP figures on the two-child cap can be found here.
2. In 2024, 11% of StepChange clients had three or more dependent children and 73% were behind on priority bills (housing, council tax or energy)