Scottish Government gives update on two-child cap after UK Budget

THE Scottish Government has issued an update on the two-child cap following the publication of the UK Budget.

Last week, Chancellor Rachel Reeves confirmed the Labour Government would follow Scotland in removing the two-child benefit cap from April 2026.

The decision to remove the cap, which restricted payment of the Universal Credit child element to two children per family, is set to lift 450,000 children out of poverty by 2030, according to the Office for Budget Responsibility (OBR).

Chancellor Rachel Reeves (Image: Jonathan Brady/PA)

According to the UK Government , some 95,000 children in Scotland will benefit from the move.

The Scottish Government had already planned to effectively scrap the cap from March 2026 by introducing a new Two Child Limit Payment of £292.81 per el