The Department for Work and Pensions (DWP) is poised to take a major step towards abolishing the controversial two-child benefit cap this week, fulfilling a key manifesto pledge.
Formal Parliamentary Process Begins
On Thursday, January 8, 2026, the Bill to end the limit will be formally introduced into Parliament. The announcement was made by the Work and Pensions Secretary, Pat McFadden, who stated the government is acting on its commitment to reduce child poverty.
Mr McFadden emphasised the human cost behind the policy, noting that child poverty has risen by about 900,000 since 2010. He framed the move not merely as a financial transfer but as a crucial investment.
An Investment in Future Generations
"I see it as an investment in children’s future," McFadden told Sky News. He highlighted the stark disadvantages faced by children from the poorest families, including lower educational attainment and a higher risk of mental health problems later in life.
The Secretary also connected this policy to his early focus on tackling youth unemployment, known as 'Neets'. He pointed out the long-term economic impact, stating that for every young person who remains on benefits, they could lose about £1 million in lifetime earnings.
Broader Political Context and International Stance
During the same interview, McFadden addressed international relations, confirming the UK's position that the United States remains a reliable ally. Commenting on President-elect Donald Trump, he acknowledged the changing global landscape and the need for Europe to step up its capabilities in both hard and soft power.
The move to scrap the cap, estimated to cost around £3 billion, marks a significant shift in social security policy and is set to be a defining early action for the government.
