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The sibling penalty (two-child limit): a background briefing

What is the two-child limit?

The two-child limit means families are not allowed to access support through Universal Credit or Child Tax Credit for more than two children, if those children were born after April 2017.

When was it introduced and why is it controversial?

The limit was introduced in 2017. No such restrictions on siblings had previously existed within the UK social security system, and very early on it was opposed by church leaders and anti-poverty charities, who argued it was simply wrong for the Government to provide differing levels of support to children. Dozens of bishops and other faith leaders wrote to the Government on the policy’s first anniversary, calling for it to be scrapped. Save The Children refer to the policy as a sibling tax.

How many children are affected?

The Government’s own figures show that 1.6 million children in 440,000 households live in families affected. The number of third (or higher) siblings denied support as a result of the policy has increased every year. Affected families miss out on £3,455 a year.

What difference would ending the policy make?

Experts such as the End Child Poverty coalition and Save The Children estimate that ending the restriction would immediately lift 300,000 children out of poverty, and would redirect £1.3 billion of withheld support to families.

Why are we campaigning now?

Churches have always been among the most vocal critics of the policy. The effort is being stepped up now because the new Government has launched a Child Poverty Strategy, and there are hopes that Ministers might be receptive to growing calls to abandon the policy. Some Labour MPs and party figures have publicly called for its removal. It was not included in the King’s Speech, but we hope it can be included in the Budget in October.

We know there is strong support for change within churches, and many of your denominations may already be making similar calls. We want to show the strength of feeling across the UK churches, and invite everyone to speak out together.