The first detailed research on the impact of the two-child limit in tax credits and universal credit by the Child Poverty Action Group (CPAG) and the Church of England, reveals families affected by the two-child benefit cap are being forced to cut back on fresh food, are unable to cover essential utility bills, and are accruing debt.
The policy, which mostly affects working families, restricts the child element in universal credit and tax credits, worth £2,780 per year, to the first two children. Third or subsequent children born before it came into effect in April 2017 are exempt.
The report, ‘All Kids Count: the impact of the two-child limit after two years’, draws upon a survey of more than 430 families affected by the policy and 16 in-depth follow-up interviews. Women’s Aid and the Refugee Council provided additional findings from interviews with survivors of domestic abuse and refugees.
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