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What is the two-child benefit cap and how is it impacting families?

02:04

What is the two-child benefit cap and how is it impacting families?

The two-child benefit cap prevents parents from claiming child tax credit or universal credit for any third or subsequent child born after April 2017.

Former chancellor George Osborne introduced the measures in his austerity drive to encourage parents to find a job or work more hours.

Downing Street has confirmed that the government will maintain the cap, while Labour Party leader Sir Keir Starmer has come under pressure from his MPs over his plans to keep the policy.

Abolishing the cap would cost £1.3bn a year but lift 250,000 children out of poverty.

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