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The article reports that over 2,000 families with eight or more children now receive an additional £21,800 annually after Labour scrapped the two-child benefit cap on Universal Credit. This change was part of ex-prime minister Keir Starmer's effort to appeal to Labour MPs and alleviate financial pressures for large families. Critics argue that this move will add around £3 billion yearly to Britain’s benefits bill.
Written locally by qwen2.5:14b on 2026-09-20,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
In April 2023, Labour scrapped the two-child benefit cap that restricted parents on Universal Credit or child tax credit to support only their first two children. As a result, over 2,200 families—those with eight or more kids—are now receiving an additional £21,884 per year in benefits. The decision was made by former Prime Minister Keir Starmer, who cited the move as one of his proudest achievements before resigning to make way for Andy Burnham. Critics argue that this change will add a significant burden to Britain’s finances, potentially increasing the annual benefits bill by an estimated £3 billion. Conservatives view this policy shift unfavorably, with shadow work and pensions secretary Helen Whately criticizing it as unfair to hardworking parents who do not receive similar pay raises from employers for having more children.
Written for “UK Benefit Cap Scrapped” on 2026-10-04,
grounded in this article and the 0 other(s) covering the same event.
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More than 2,000 families with eight or more kids now receive £21,800 extra a year after Labour scrapped the two-child benefit cap, it has been revealed.
asserted
it → see → cap
Official data shows there were 2,200 households on Universal Credit with a child element for eight or more children shortly after the Government axed the cap.
asserted
Government → show → cap
It means those households are on course to get £21,884 extra each year now the limit has been lifted.
asserted
limit → mean → 21,884
Between 2017 and April this year, the two-child benefit cap meant parents could only claim Universal Credit or child tax credit for their first two children.
uncertain
parents → mean → children
The cap was scrapped by ex-prime minister Keir Starmer before he left Downing Street as he desperately scrambled to win over Labour MPs and save his doomed premiership.
asserted
he → scrap → premiership
Following his resignation to make way for Andy Burnham, Sir Keir described the decision to lift the cap as the proudest achievement of his time in power.
asserted
Keir → follow → power
But critics despaired at the Government for adding an estimated £3billion a year to Britain's benefits bill and putting further pressure on the nation's finances.
asserted
critics → despair → finances
Official data shows there were 2,200 households on Universal Credit with a child element for eight or more children shortly after the Government axed the cap
Figures from the Department for Work and Pensions (DWP), obtained via a Freedom of Information request, also showed there were 17,290 households on Universal Credit with a child element for six or more children in May this year.
These households are set to receive £14,589 extra a year following the axing of the cap, with families getting £303.94 extra per child per month.
uncertain
families → show → month
In an article for The Sun on Sunday, Tory leader Kemi Badenoch reiterated her party's pledge to reinstate the two-child benefit cap to fund an increase in defence spending.
asserted
Badenoch → reiterate → spending
'We believe those on benefits should have to make the same choices about having children as those who aren't,' she wrote.
asserted
she → believe → those
Helen Whately, the Conservatives' shadow work and pensions secretary, said: 'Hardworking parents don't get a pay rise from their employer when they have another child, but Labour has done just that for people on benefits.
'
asserted
Labour → say → benefits
Large families are getting crazy amounts of extra money in benefits and the taxpayer is footing the bill.
asserted
taxpayer → get → bill
'For many hardworking families struggling to make ends meet, it's a kick in the teeth.
asserted
it → struggle → teeth
'Conservatives believe in fairness, and that means those on welfare have to make difficult choices just like those who are not.
asserted
who → believe → those
'Labour should never have lifted the two-child cap, and we will bring it back.'
asserted
we → lift → it
A DWP spokesperson said: 'Almost 60 per cent of households benefitting from the removal of two-child limit have at least one parent in work.
asserted
cent → say → work
This important change gives hard-working families some extra breathing room in their daily lives, while lifting 450,000 children out of poverty in the final year of this Parliament.
asserted
change → give → Parliament
'Children growing up in poverty are far more likely to leave school without qualifications and end up not in work or education as young adults.'
asserted
Children → grow → adults
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