The 2 child benefit cap lift will be cancelled out by the weekly benefit cap

[Pinkbowls]

I keep seeing all this talk about families with 6+ kids “racking it in” if the two-child benefit cap is lifted, and honestly, it’s hogwash. Here’s the reality:

If the Labour government does lift the two-child cap, it will mainly help low-income working families and families who are claiming disability benefits. These households aren’t subject to the cap, so the poorest families and those who genuinely need extra support for a third or fourth child are the ones who will benefit.

For a single adult with two children outside London, the monthly benefit cap is around £1,832 (~£423 per week). In London, it’s higher, about £2,108 per month (~£486 per week).

Now let’s break it down roughly for someone renting privately:

• Assume the standard allowance + personal allowance for the adult + child elements (for 2 kids) = around £1,200–£1,300/month.
• Private rent in many parts of the UK, and especially in London, can easily eat £800–£1,200/month.
• Add council tax support (which helps a bit, but only partially) and you can see that most of the cap is already taken up.

So in reality, lifting the two-child cap doesn’t suddenly create a pile of extra cash. For families on benefits but below the cap, the extra child element for a third or fourth child may only leave a modest amount after rent and council tax.

The idea that parents with 6+ children will suddenly be sitting on a fortune is completely overblown. The system is designed so that the support goes to those who genuinely need it, not to families already comfortably above the threshold.

The main winners of this policy will be:

• Low-income working families who are earning enough to be under the cap and can actually receive the child element for additional children.
• Families claiming disability benefits, who aren’t subject to the cap at all.

It’s important to separate myths from reality: this is about helping the most vulnerable and supporting working families, not about rewarding large families for being on benefits.

They seem to honestly think a magic money fairy godmother exists for anyone on a payroll

You feel you are entitled to a level of security, that isn’t even afforded to millions of working people.

Please do claim it as it adds to your NI record!

Maybe they are smart and savvy with their budgets? Everyone needs savings. I don't like this "I am struggling so I want everyone else to do so too" attitude.

Ok so what happens when the washing machine breaks down, or their child needs new shoes? Are they allowed to have keep some savings to buy Christmas presents and a turkey? What about living conditions. How basic should it be? Could they spend some cash on a picture for their walls? Do a couple of cushions count as essential or should benefits claimants not be allowed such things?

It’s difficult to save when the government keeps taking money off you to give away.

The biggest scandal is PIP which isn't means tested and often given for mild anxiety. I know this as I am a mental health professional. So people can earn £100,000 plus and still get a few hundred extra. I know people who have professions like bankers who just save the extra money in an account for holidays or other treats.
This government will never reform benefits with such a weak prime minister who is frightened by the bank benches. No wonder people are angry and resentful.

Well what happens when a working person breaking even has those things happen?

Dont worry. I do all that too, as well as living with a debilitating disability and chronic pain.

I had no idea that £16,000 savings was possible for someone on benefits! I have about 16p and lots of debt!

Interesting you think that when it's obviously not true for the rest of Europe. We have some of the least generous welfarecin the OECD countries: https://niesr.ac.uk/publications/uk-living-standards-review-2025?type=report

Some headlines for you to consider:

Key Findings

• The poorest households in Slovenia and Malta are now better off than the poorest in the UK: whereas real incomes grew consistently before the 2008 financial crisis, the stagnation afterwards has meant that other countries have overtaken the UK standard of living.
• Regional income growth is some of the slowest in Europe: real incomes in the majority of European regions have grown at a faster rate than those in UK.
• The UK has some of the least generous welfare across the OECD: the UK ranks in the middle of OECD countries for welfare spending (as a per cent of GDP) and third lowest for welfare value (per cent of average wages).
• Welfare has only covered the cost of essentials in two out of the last 14 years: only during the pandemic did welfare cover the costs of essentials due to the £20 per week uplift to Universal Credit.
• The UK is neither a high wage nor high welfare country: the consequence of weak wage growth and cuts in welfare spending have meant that by comparison to other countries the two main sources of living standards in the UK is limited.
• Less than 5 per cent of private rental accommodation across the UK is affordable on housing benefit (down from 20 per cent in 2020): freezing the cash value of housing benefit while private rental costs grew at record rates has led to a substantial fall in the areas of the county affordable on housing benefit.
• Weak productivity (TFP) is costing UK workers £4,300 per year: had UK wages grown as they did in the US after the 2008 financial crisis, UK workers would be £4,000 better off today.
• Removing the two-child limit is the most cost-effective way to reduce poverty: we estimate this would reduce poverty by 1.7 million and cost less than other similar policies that have the same beneficial impact on people’s standard of living.

If people who are unable to work can't even afford their rent, then they are also not eating or buying clothes or heating their homes. Many people on benefits have actually paid in to the system but are not getting enough out. They go into debt and it makes it even harder to live a reasonable life.

We used to be a decent civilized country that supported those less fortunate and now we are mean-spirited and begrudging of people who can't even afford the basics.

Well this has cheered me up no end .. left for work (office) at 6.30 this morning and just home. And have work to pick up this evening as we’re so busy. I have no choice as there have been so many redundancies in my company since the last budget that everyone has more work to do and has to do it for fear they may be next. This is all unpaid.

My mortgage and bills swallow a huge proportion of my income (SE - small house) so I don’t have money for holidays or luxuries. I don’t have savings.
The welfare bill in this country is insane and something has to be done. No one should be better off on benefits than working. I’m not saying support shouldn’t be there for those who need it but god it’s so demoralising slogging away non stop for all hours only to know I’ll be taxed even more to pay more in benefits.

I wish those claiming welfare would appreciate for many of us working we don’t live in luxury, have to pay full price for everything and are now working longer hours as companies make more and more cuts to staff due to the NI hike.

I’m sure we won’t get a pay rise in April and so I’ll have to cut back further still to fund increases in tax and the inevitable increase in council tax and utility bills.

Then when the next budget comes around there’ll be more debt and workers will be taxed more again. And the tax doom loop will continue.

I didnt know that... thanks!

It seems that way.
I have a friend who is on UC/PIP and she is amazing at budgeting and finding deals on things. She is great for advice on things like that. Because she is so good with what she gets, she is able to save a bit.

If the son is a child then the parents are probably paying the cost of disability, they might feel they should if they can and save the sons money for things he might need in the future.

Literally all of these ‘yardsticks’ also apply to working people and wages

People work full time and struggle with all of those things. No benefits. I know full time working couples who are on a really tight budget for Christmas.

Doesn't that all indicate we can't afford the current benefits bill as we are a poor country living beyond its means?

Why do it then?
Your poll shows that 70 odd % of over 200 people don't want to pay for people to have 3+ kids so why rile people up for something that's "symbolic".

Most don't. Many of those on tax credits were allowed lots of savings though.

We used to be a decent civilized country that supported those less fortunate and now we are mean-spirited and begrudging of people who can't even afford the basics.

ha ha ha! Are you for real??

https://www.mumsnet.com/talk/money-matters/5153509-does-this-universal-credit-amount-sound-wrong

Amazing.

So are many on benefits.

What I'm more frustrated about is the benefit fraud happening that allows someone to not work (child under 3), claim as a single parent and therefore get free school meals and a huge discount for council tax (Council Tax for the year was £35 compared to my £1560 for the same band) while their partner lives with them, hands over half his wage in cash and uses the other half to save for their 2 holidays 😤

I do see other people living hand to mouth on benefits, struggling to get by, close relative was relying on benefits and the amount she got compared to how much her rent and bills were, I was shocked at how little she had to survive. She's found a lovely job now and is finally more comfortable and it's made such a difference to her overall happiness, for her benefits were a lifeline and not a way of life.

Yes but those working also have to do the work too? 😆