Research and analysis

Poverty impacts of social security changes at Budget 2025

Estimates of the impact of social security changes at Budget 2025 on low income poverty levels.

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In November 2025, the UK government announced that from April 2026 it will be removing the two-child limit so that families can receive the child element of Universal Credit for all children regardless of family size. This publication provides an estimate of the impact on low income poverty levels as well as information on households and children who are affected by the two-child limit and not affected by the benefit cap, broken down by country and parliamentary constituency.

Updates to this page

Published 26 November 2025
Last updated 4 December 2025 show all updates
  1. The data tables have been updated to include an additional geographical breakdown.

  2. Figures in 2 tables have been corrected in 'Removing the two-child limit on Universal Credit: Impact on low income poverty levels in the United Kingdom'. In Table 1 for FYE 2031 the figure for Individuals has been corrected to -550,000 and in Table 2 for FYE 2031 the figure for Individuals has been corrected to -400,000.

  3. First published.

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