Thousands of families in some of Birmingham's most deprived neighbourhoods are set to receive a significant financial boost following a major overhaul of the benefits system.
Chancellor ends controversial two-child limit
Chancellor Rachel Reeves has announced the scrapping of the two-child benefit cap, a policy that restricted Universal Credit support to the first two children in a household. The landmark change, confirmed during the Budget, will take effect from April onwards.
Ms Reeves stated her party's firm belief that "the solution to a broken welfare system is not to punish the most vulnerable children." She projected the move would help lift hundreds of thousands of children across the UK out of poverty.
Birmingham constituencies set for biggest impact
The policy shift is expected to have a profound effect in Birmingham, where some areas host the highest concentrations of children impacted by the now-abolished cap in England.
Official figures reveal the scale of the change for the West Midlands:
- Ladywood: 11,940 children in homes affected by the cap – the highest number in England.
- Hodge Hill and Solihull North: 9,920 children impacted.
- Perry Barr: 8,220 children impacted.
- Yardley: 8,030 children impacted.
- Walsall and Bloxwich: 8,030 children impacted.
- Erdington: 7,300 children impacted.
For eligible households, the reform means they can now claim Universal Credit for all their children, potentially adding hundreds of pounds to their monthly income.
National picture and reaction
Department for Work and Pensions statistics show the two-child limit affected a record 469,780 households across Britain in the year to April 2025. Notably, 59% of those households were in work, supporting a total of 1.7 million children.
The decision has been welcomed by anti-poverty campaigners. Joseph Howes, CEO of Buttle UK and chair of the End Child Poverty Coalition, commended the Chancellor. "This provides real hope for families across the country," he said. "More children will grow up with the security, opportunity, and support they deserve. This change will help lift futures — giving more children the chance to dream bigger."
The move signals a significant shift in welfare policy, with its most immediate and substantial financial impact set to be felt in communities across Birmingham and the wider West Midlands from the spring.
