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Universal Credit (Removal of Two Child Limit) Bill: HL Bill 171 of 2024–26

Approximate read time: 15 minutes

The Universal Credit (Removal of Two Child Limit) Bill is a government bill comprising two substantive clauses. These would remove the current ‘two-child limit’ in universal credit (UC) in Great Britain and Northern Ireland, respectively, from 6 April 2026.

The Welfare Reform and Work Act 2016 introduced a two-child limit to the child element of UC. The limit has meant households with a third or subsequent child born on or after 6 April 2017 have not been eligible to receive additional amounts for these children as part of UC claims, subject to certain exceptions. These include for children born as part of multiple births resulting from the same pregnancy, certain adopted children, or children likely to have been born following a non-consensual conception (including as a result of rape) or during a period of ongoing control or coercion.

The government announced its intention to remove the limit at the November 2025 budget. The measure also formed a key part of the government’s child poverty strategy published the following month.

The House of Commons passed the bill on 23 February 2026. The bill was not amended during its passage.

The speaker of the House of Commons has certified the bill as a money bill. In practice this limits the extent to which the House of Lords can propose significant changes and means the bill can become law with or without House of Lords approval.

The House of Lords is scheduled to consider the bill at second reading and all remaining stages on 12 March 2026.

The government has published explanatory notes and a series of other supporting documents to accompany the bill, including a delegated powers memorandum, a human rights memorandum and an impact assessment.