The two-child benefit cap has been scrapped in the Chancellor's budget, it has been confirmed in forecast documents released early in error.

The Office for Budget Responsibility released its report early ahead of Rachel Reeves ' budget speech in the Commons.

The scrap had been rumoured in the run up to the tax and spending announcement from the Chancellor.

Documents revealed it will cost the taxpayer £2.3 billion in 2026-27 - but saves Scottish ministers £155 million.

The Scottish Government intended to mitigate the cap from April 2026.

The cap was introduced by the Conservative government in 2017 and maintained by Labour despite intense pressure from backbenchers.

It means parents are unable to claim Universal Credit (UC) or tax credit for any third or subsequent children born

See Full Page