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New Harsher UC Two Child Limit rules scrapped!

The Two Child Limit rules are not being scrapped - what was announced last week was that the harsher rules that were going to be introduced into the UC Regs from 1st February 2019 will not now go ahead

These would have seen new UC claimants (who had not been getting Child Tax Credit for their children during the 6 months before their UC claim) being limited to having just two Child Elements included in their UC award regardless of when those children were born.

So the 'U-turn' announced last week means that the Two Child Limit will no longer be applied to children born before April 2017, as had been the plan.

Campaigners hope that this will lead to the entire policy being scrapped - which is currently being challenged through the courts.
Many families are still affected by the Two Child Limit rules (see Sally and Tim below) but for many (like Audrey, and Dave and Georgia below) the 'U-turn' announced last week will be a huge relief.

Background: In April 2017 the government introduced a policy of providing support through Tax Credits and Universal Credit for a maximum of two children (with some exceptions - adoption, multiple births etc). This applied to claims made for children born on or after 6th April 2017.

However, an 'interim period' was set up for UC claimants. During this interim period families with three or more children have been directed to claim Tax Credits (and Housing Benefit etc) instead of UC. The plan was that once UC had been fully rolled out, and the interim period ended - families with three or more children would be allowed to make a new claim for UC - and would come under harsher rules that would have limited their award to just two Child Elements regardless of when their children were born (although with some protections in place and retaining the exceptions).

As a result of the amendments announced last week, when the interim period comes to an end - on 31st January 2019 - families with three or more children will be able to make new claims for UC (and will no longer be able to make new claims for Tax Credits and/or Housing Benefit etc). But, they will be able to receive an additional amount in their UC ie a Child Element, for all children born before 6th April 2017.

In other words the rules under UC will work the same as the rules have been working under Tax Credits.

Click here for more information on the Two Child Limit.