Martin Lewis: Confused about the ‘two-child benefit cap’ – and what it really means?

This is a quick, simple video briefing to clear up some of the misinformation out there - taking you through Child benefit rules, two-child limit for Universal Credit & the benefits cap.

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[matthewcook]

The general public is ( deliberately in my opinion - for purely political purposes ) misled, misinformed and confused on this and many other issues by our media. Thank you for your work clarifying this “story”.

[EdmundBaileyUK]

It’s absolutely crucial that this is understood as so many people don’t know about it. 👍👍

[Millennial_Mike]

I hate to sound callous... but I think the cap is pretty fair. Getting rid of it won't fix the issues... we need to create meaningful introductory incomes for those on getting into work.
If we actually had an economy that meant those on the lower end of pay (working full time) were still actually well off enough to comfortably afford life's essentials etc, then the whole concept of welfare would become more and more redundant.

Right now, someone over 21 in a job like Tesco/Aldi working full time 40 hours a week, 56 weeks a year (with 28 days paid leave) would be on £25k - £27k gross.

That's seriously low pay for that amount of work. Especially once you factor in child care etc...

Reality is, most wouldn't be on 40 hours a week... more likely 15 - 30 hours a week... so closer to the £20k mark

Of course the problem is, as soon as the Living wage is increased, other skilled areas of labour force want their income higher etc... and then the real value of higher wages decreases so you end up with salaries that were considered good 10 years ago suddenly being the new minimum wage.

[wolvesaywe]

Any news on bringing down the standing charge?

[TheSammy]

Where would we be without you. They don’t teach any of this (and any other benefits and taxes)

[engima]

He needs to talk about the DWP's upcoming rules.

[ScreamingEaglest]

As a single dad why should I be poor while the mother gets even more benefits and lives a life of luxury ??? Explain

[misslanapaulford]

It should DEFINITELY be keep at a two child minimum. It is NOT the government responsibility to give you a endless supply of money because you CHOSE to have multiple children with one or multiple partners. The government already provides women and men with free CONTRACEPTION and access to abortions and vasectomy for free. It is not the government's responsibility when you as a women CHOSE to be irresponsible...it's 2024, no one needs to be having 6 kids by one partners or multiple different partners.. You the woman and the man or men you chose to sleep with are responsible.
How about instead of child support, use that money to pay for the women who knowingly to chose to have more than 2.
If you can afford to have more than 2 then go ahead. But it's not up to people working 40+ hours per week paying taxes. For women to stay at home and pump out babies. That's not what I work for.
You want them U pay for them..

[mystation]

It isn’t necessarily a 2 child benefit cap (ie no benefits for more than 2 children) as even for families with only 2 children money is capped.

[colfer]

Parents should be made to pay for their own children.They had them, they pay for them....why should someone else.

[PrinceRules]

In my head I'm imagining a chart that lays this out visually. Though it would require many simplifications, it could plot combined child benefits received against relevant household income (probably doninant earner).

There would be a separate line representing 1 child, 2, 3 and 4.

You could then see at low earnings how much is given in benefits for each number of children, and see how this tapers as income goes up.

Child Benefit would be a sort of underlying amount, while the two child limit on universal credit would have a clear effect on the 3+ children lines, and finally the benefit cap (I would chart outside of London for broader relevance) would be a clear cut off on one end of the chart.

Personal income isn't relevant on the surface of it but would be the only way to estimate a person's proximity to the overall benefit cap, since the two-children amount for universal credit is about a third of the cap as far as I can tell. At 2-4 kids it seems you wouldn't hit the cap unless you have a large amount in other benefits (though there are many).

So obviously an approximation for the mix of benefits for low earners would be needed. A simiplification would probably be wise for the sake of not preventing an already complex calculation reaching a result.

[suemsearch]

Thank you for explaining this. I had assumed there was no child benefit for third or subsequent children regardless of whether the patent received universal credit or not. So, there is a benefit provided for each child from taxation unless one patent is a high earner, when it is reclaimed via the tax system. It is only children in families receiving UC that are implicated. I need to think this through as it is different to what the media and politicians have been implying.

[atyibali]

we need to talk about how child tax credit and working tax credit is being pushed into universal credit, its been stressful and unhelpful to families.Parents are being told to work more hours or the universal claim would be closed???

[whitestar]

Helpful Info and i think this should have introduced a long time ago. Lot of people abusing the system and we tax payers suffer. I have seen number of cases myself in Glasgow. The parent work as a Cash only and take huge benefits more than a salary of executive just by sitting at home .Its so painful when we parents work day and night and pay taxes and raise our children just to find our tax money getting skimmed.

[JK_JK_JK_JK]

If you can't afford to have Kids then don't have them!!! 🙄

[paul_my_plumbs_uk]

Are labour going to be give cost of living payments???

[dragosalincseplo]

With all my respect and I don’t want to upset anyone.

UK military assistance
The UK is one of the leading donors to Ukraine, alongside the US and Germany. To date, the UK has pledged £12.5 billion in support to Ukraine since February 2022, of which £7.6 billion is for military assistance. This includes £3 billion for military assistance in 2024/25.

For your children is not affordable but for war in other countries is ok . 😊
I will not be amazed to see new PM to be appointed. 😊

[BrianMartin-oxru]

Why is it the job of the taxpayer to fund other peoples children?

[Oh_no_here_we_go_again]

If people want kids they should pay for the brats themselves

[rosyapplekitchen]

Sadly the hardworking parents can’t afford to have any kids or more than 1-2. Whereas those on benefits no problem