New data reveals North/South divide of children hit by two-child limit on benefits

The North West, North East, Yorkshire & Humber and the West Midlands have the highest percentage of children affected by the two-child limit across the UK. The data also reveals a strong correlation between the two-child limit and areas with high rates of child poverty.  

New local data obtained by the End Child Poverty Coalition, of which children’s charity Barnardo’s is a member, shows that half of the 20 UK local authority areas with the highest percentage of affected children are in the North West of England. 

The two-child limit affects families entitled to benefits who have had a third or subsequent child after 6 April 2017. These parents are denied £3,235 per year per child compared with families who have a third or subsequent child born before that date. 

Research suggests that scrapping the two-child limit is one of the most cost-effective ways of addressing child poverty. Ending the policy would lift 250,000 children out of poverty at a cost of £1.3bn. (1) 

The region with the highest percentage of children living in households affected by the limit is the West Midlands, at 14%. In both the North West and Yorkshire & Humber the figure is 13%. In the North East it is 12%.  

In contrast, the least affected region is the South East at 8%, yet that still amounts to 160,000 children whose life chances could be blighted by the policy. 

Across the nations, the figure is 11% for both England and Wales. In Northern Ireland it is 10%, and in Scotland, 9%. 

There are around 1.5 million children in the UK living in households subject to the two-child limit to benefit payments – equivalent to one in 10 (2). Areas most affected by the two-child limit are those with the highest child poverty rates (3). 

Research has shown that the two-child limit has limited impact (4) on increasing the number of parents who enter employment. In fact, the majority (58%) of families affected by the policy are already in work.(5)  

In September, Barnardo’s released figures from YouGov suggesting more than one in 20 children (6%) are sleeping on the floor because their families cannot afford for them to have a bed of their own. In its No Crib For a Bed report, the charity called for the two-child limit to be scrapped.

Lynn Perry MBE, Barnardo’s Chief Executive, said:  

“It’s simply not right that children growing up with two or more siblings are so much more likely to be living in poverty. The majority of families receiving Universal Credit are in work, and many are struggling for reasons beyond their control - such as a family break-up, the death of a partner, or someone losing a job amid the cost-of-living crisis.  

“The unfair two-child limit on benefits is one of the biggest policy drivers of child poverty. If political parties are serious about levelling-up they need to urgently commit to ending the policy. This needs to be included in the manifestos of all political parties ahead of the forthcoming election to help tackle child poverty in the UK.” 

Joseph Howes, Chair of the End Child Poverty Coalition and CEO of Buttle UK said: 

“Imagine saying to a child who turned up at school – sorry you can’t gain access, we won’t fund your education – only your two older siblings qualify. Or turning a child away from hospital when they need treatment, as they are the third child in a family. Yet this is exactly what the unfair two-child limit to benefit payments does, it denies families the support they need, at a time when they need it the most.

“As a parent I want to be able to provide for my children, especially at a magical time like Christmas. But we know from speaking with families impacted by the two-child limit that this time of year is anything but joyful. Instead, they worry about heating their homes, and providing even basic food over the Christmas period.

“If political parties seriously want to tackle child poverty, they need to start by scrapping the two-child limit to benefit payments.”   

Rosie Gilchrist is a mum of three children – aged 13, 10 and six. She founded the charity Rosie’s Corner in Hexham, Northumberland, which collects donations of new and preloved clothes and equipment to help families in need. 

Rosie’s third child was born in May 2017 - the month after the two-child limit on benefits came in, meaning she is around £270 a month worse off. 

She said: “Since the cost-of-living crisis hit I’ve been struggling to pay for gas, electricity and food. The money I do get goes in one hand and out the other just so I can make ends meet.  

“The two-child limit doesn’t just penalise the third child – it penalises them all. When they have a growth spurt I can’t afford a full set of clothes for all three- I have to do it bit by bit and on a buy now pay later basis. So I have to put myself in debt. 

“This Christmas is a massive worry. I’ll be taking out loans to pay for Christmas presents for the children. 

“If the two-child limit was scrapped I’d be able to pay for things like extra-curricular activities for the children, so they could develop and have more positive, educational experiences. I currently can barely afford the tech and Wi-Fi that all children rely on for their education.” 

 

Notes to editors  

  

UK nations	Children affected by 2CL	% of children affected by 2CL	Local child poverty rates 21/21
England	1335080	11%	31%
Wales	69520	11%	28%
Northern Ireland	44950	10%	22%
Scotland	87160	9%	24%

 

 English regions ranked by percentage of children affected by two child limit. 

 

English region	Number of children affected by 2CL	% of children affected by 2CL	Local child poverty rates 21/22
West Midlands	183030	14%	38%
North West	208680	13%	34%
Yorkshire and the Humber	150920	13%	31%
North East	65460	12%	35%
London	231470	11%	33%
East Midlands	109630	11%	33%
East of England	125810	9%	24%
South West	97530	9%	27%
South East	162550	8%	25%

 

 

Top 20 UK local authorities ranked by percentage of children affected by two child limit. 

 

Local authority	Nation/ region	Number of children affected by 2CL	% of children affected by 2CL	Local child poverty rates 21/11
Hackney	London	14510	23%	43.4%
Manchester	North West	26530	20%	44.7%
Salford	North West	11870	20%	37.4%
Birmingham	West Midlands	58930	20%	46.4%
Tower Hamlets	London	13940	19%	47.5%
Pendle	North West	4500	19%	42.5%
Middlesbrough	North East	6280	18%	40.6%
Nottingham	East Midlands	12340	18%	41.0%
Hyndburn	North West	3470	18%	41.6%
Burnley	North West	4030	18%	40.7%
Oldham	North West	11340	18%	43.6%
Stoke-on-Trent	West Midlands	10280	17%	43.5%
Bradford	Yorkshire and The Humber	25650	17%	39.3%
Blackburn with Darwen	North West	7170	17%	42.2%
Blackpool	North West	4900	17%	38.6%
Walsall	West Midlands	12090	17%	43.3%
Bolton	North West	12480	17%	41.6%
Rochdale	North West	9590	17%	40.5%
Sandwell	West Midlands	14500	17%	44.6%
Wolverhampton	West Midlands	10380	16%	43.3%

 

 Bottom five UK local authorities ranked by percentage of children affected by two child limit: 

 

Elmbridge	South East	1330	4%	12.9%
Waverley	South East	1080	4%	14.5%
East Dunbartonshire	Scotland	820	4%	14.9%
Richmond upon Thames	London	1510	3%	12.4%
Bournemouth, Christchurch and Pool	South West	1520	2%	24.7%

 

About the data 

The data on the two-child limit was obtained via Freedom of Information requests to the Department of Work and Pensions, HMRC and the Department for Communities Northern Ireland. You can download the full spreadsheet of data here: https://endchildpoverty.org.uk/    

The Local Child Poverty data is calculated each year by Loughborough University, for the End Child Poverty Coalition, and can be found here: https://endchildpoverty.org.uk/child-poverty/.  

 

References:

1  - Child Poverty Action Group, Budget submission 2023, 2023

2 -  From Universal Credit and Child Tax Credit claimants: statistics related to the policy to provide support for a maximum of 2 children, April 2023: Universal Credit and Child Tax Credit claimants: statistics related to the policy to provide support for a maximum of two children, April 2023 - GOV.UK (www.gov.uk)

3 - The Local Child Poverty data is calculated each year by Loughborough University, for the End Child Poverty Coalition, and can be found here: https://endchildpoverty.org.uk/child-poverty/. 

4 – From Benefit Changes & Larger families, 2022:  https://largerfamilies.study/publications/the-two-child-limit-and-choices-over-family-size/

5 – From Universal Credit and Child Tax Credit claimants: statistics related to the policy to provide support for a maximum of 2 children, April 2023:  Universal Credit and Child Tax Credit claimants: statistics related to the policy to provide support for a maximum of two children, April 2023 - GOV.UK (www.gov.uk)