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National Release

For immediate release: Monday 4 December 2023 

 

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

Children in the North of England are more likely to be hit by the two-child limit on benefits, new data reveals.

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 102. Areas most affected by the two-child limit are those with the highest child poverty rates3.

Research has shown that the two-child limit has limited impact4 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.”

 

Case study:

 

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)

 

 

About the End Child Poverty Coalition

The End Child Poverty Coalition is made up of over 100 organisations including child welfare groups, social justice groups, faith groups, trade unions and others. Together with a group of Youth Ambassadors we all believe that no child growing up in the UK should live in poverty.

Together we ask that this and future governments commit to end child poverty.

 

 

About Barnardo’s

Last year Barnardo’s provided essential support to over 357,000 children, young people, parents and carers through more than 790 services and partnerships across the UK.

We provide vital support to the children and families who need us most, to help with a range of issues including mental health, child sexual abuse and children in care.

We listen to children and young people and work to bring about positive change so that they can have a brighter future.

Visit www.barnardos.org.uk to find out more.

 

 

Call the 24 hour press office number on 020 8498 7555.

Registered charity No. 216250 and SC037605.

Follow Barnardo’s media team on Twitter @BarnardosNews

 

 

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