A family from Wales is set to receive a significant monthly increase in their benefits after a major welfare rule change announced in the Budget.
Budget Change Ends Controversial Cap
Chancellor Rachel Reeves has abolished the controversial two-child limit on benefit payments as part of the Labour government's first Budget. This decision is projected to add approximately £3 billion to welfare spending by the 2029-30 financial year, according to the Office for Budget Responsibility (OBR).
The policy reversal is expected to increase benefits for around 560,000 families across the United Kingdom. Anti-poverty charity Turn2us estimates that 350,000 children will be positively affected by the removal of what its CEO, Thomas Lawson, described as a "cruel" and "unjust" policy.
A Family's Financial Relief
Lisa White, 31, and her partner David White, 35, from Monmouth in south Wales, have calculated that their household income will rise to as much as £2,770 per month from Universal Credit and Child Benefit combined. This represents an extra £900 monthly for the family, which includes five children.
"The cap being removed will improve my kids' lives and open so much up for them," Lisa explained. She highlighted that money has been tight since her partner had to leave work, with the food bill consuming the largest portion of their budget.
The additional funds will have a direct impact on the children's opportunities. "My son Marley, nine, has really wanted to do football club. Now we'll be able to pay for him to do that," Lisa said. She emphasised that while the change isn't primarily for her benefit, it allows her to "see my children doing things that they love to do."
Charity Response and Remaining Challenges
Thomas Lawson of Turn2us welcomed the move, stating it "gives children a fair start [and] strengthens Britain’s future prosperity." However, he cautioned that the job is not finished, as the decision to retain the separate benefit cap means thousands of the UK's poorest families will not see any increase from this specific change.
"Removing it must be the next step, so no child is left behind," Lawson urged. Financial experts note that while the Budget also promises lower household energy bills, these supportive measures occur alongside rising taxes and frozen thresholds, which continue to put pressure on family finances.
The policy shift, enacted in the December 2025 Budget, marks a significant departure from the previous welfare approach and is framed by the government as a direct investment in tackling child poverty.
