Sir Keir Starmer is handing Universal Credit households an extra £736 as he quits as Prime Minister. Now Sir Keir has stepped down as Labour Party leader, supporters are praising his achievements while in office before he departs Number 10.
Two-Child Limit Abolished
From April 2026, the Labour Party government has removed the two-child limit, which prevents parents from claiming Universal Credit for third and subsequent children born after April 2017. In addition, Sir Keir's government said it will support working families with three or more children by increasing the maximum amount of childcare costs they can claim in Universal Credit by £736.06 for each additional child above the current maximum cap for two children.
The two-child limit being scrapped is widely regarded as one of the biggest successes of a Starmer government, with the government championing it as "historic".
Government Statements
Earlier this year, Secretary of State for Work and Pensions Pat McFadden said: "Today is an historic day, marking a turning point for 450,000 children across Britain. Scrapping the two-child limit is about more than family finances today, it’s about the Britain we’re building for tomorrow. Children growing up in poverty are far more likely to leave school without qualifications and end up not in work or education as young adults, and we’re determined to break that cycle once and for all and give every child the best start in life."
Minister for Employment Dame Diana Johnson added: "For too long, the two-child limit has held children back through no fault of their own. With the law now changed, hundreds of thousands of children will grow up with greater security and opportunity. We’re determined to break the link between a child’s background and their life chances and today brings us a step closer to that goal."
Impact on Child Poverty
According to the government, 2.6 million children in the UK don’t have enough food at home, over 172,000 have no permanent home, and babies born in the poorest areas are twice as likely to die before their first birthday. The removal of the two-child limit is expected to lift hundreds of thousands of children out of poverty.
