Universal Credit Act Removes Two Child Limit

UK New Legislation

Published March 18th, 2026

Detected March 20th, 2026

Summary

The UK Parliament has enacted the Universal Credit (Removal of Two Child Limit) Act 2026, which removes the two-child limit on the child element of universal credit. This change amends the Welfare Reform Act 2012 and related legislation, impacting benefit calculations for families with more than two children.

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What changed

The Universal Credit (Removal of Two Child Limit) Act 2026, enacted on March 18, 2026, removes the existing two-child limit on the child element of universal credit. This is achieved by amending Section 10 of the Welfare Reform Act 2012 and consequential provisions in the Welfare Reform and Work Act 2016 and the Universal Credit Regulations 2013 (for both Great Britain and Northern Ireland). The Act specifically omits subsections and paragraphs that established and enforced the two-child limit.

This legislative change will directly affect the calculation of universal credit payments for families with more than two children. The amendments are effective for assessment periods commencing on or after April 6, 2026. Compliance officers should review current benefit calculations and advise affected individuals of the change, ensuring that benefit entitlements are adjusted accurately from the specified effective date to avoid underpayments or overpayments.

What to do next

Review Universal Credit calculations to reflect the removal of the two-child limit.
Ensure benefit adjustments are made for assessment periods commencing on or after April 6, 2026.
Update internal guidance and training materials regarding universal credit eligibility and calculation.

Source document (simplified)

Status:

This is the original version (as it was originally enacted). This item of legislation is currently only available in its original format.

Universal Credit (Removal of Two Child Limit) Act 2026

2026 CHAPTER 13

An Act to make provision to remove the two child limit on the child element of universal credit.

[18th March 2026]

B e it enacted by the King’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

1 Removal of two child limit: GB

(1) In section 10 of the Welfare Reform Act 2012 (responsibility for children and young persons)—

(a) omit subsection (1A) (the two child limit), and

(b) in subsection (4) omit “or (1A)”.

(2) In consequence of the amendments made by subsection (1) —

(a) in section 14 of the Welfare Reform and Work Act 2016, omit subsections (2), (4) and (5) (a), and

(b) in regulation 24 (1) of the Universal Credit Regulations 2013 (S.I. 2013/376), omit “and in respect of whom an amount may be included under section 10”.

(3) The following provisions of the Universal Credit Regulations 2013 were made under the power repealed by subsection (1) (b) (power to provide for exceptions to the two child limit) and are therefore revoked—

(a) regulation 24A;

(b) regulation 24B;

(4) The amendments made by this section have effect in relation to assessment periods commencing on or after 6 April 2026, and for this purpose “ assessment period ” has the same meaning as in Part 1 of the Welfare Reform Act 2012.

2 Removal of two child limit: NI

(1) In Article 15 of the Welfare Reform (Northern Ireland) Order 2015 (S.I. 2015/2006 (N.I. 1)) (responsibility for children and young persons)—

(a) omit paragraph (1A) (the two child limit), and

(b) in paragraph (4), omit “or (1A)”.

(2) In consequence of the amendments made by subsection (1) —

(a) in Article 10 of the Welfare Reform and Work (Northern Ireland) Order 2016 (S.I. 2016/999 (N.I. 1)), omit paragraphs (2), (4) and (5)(a), and

(b) in regulation 25(1) of the Universal Credit Regulations (Northern Ireland) 2016 (S.R. (N.I.) 2016 No. 216), omit “and in respect of whom an amount may be included under Article 15”.

(3) The following provisions of the Universal Credit Regulations (Northern Ireland) 2016 were made under the power repealed by subsection (1) (b) (power to provide for exceptions to the two child limit) and are therefore revoked—

(a) regulation 25A;

(b) regulation 25B;

3 Extent, commencement and short title

(1) Section 1 extends to England and Wales and Scotland only.

(2) Section 2 extends to Northern Ireland only.

(3) This section extends to England and Wales, Scotland and Northern Ireland.

(4) Sections 1 and 2 come into force on 6 April 2026.

(5) This section comes into force on the day on which this Act is passed.

(6) The Secretary of State may by regulations made by statutory instrument make transitional or saving provision in connection with the coming into force of section 1.

(7) The Department for Communities in Northern Ireland may by regulations made by statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)) make transitional or saving provision in connection with the coming into force of section 2.

(8) This Act may be cited as the Universal Credit (Removal of Two Child Limit) Act 2026.