The benefit cap aims to incentivise work as, where possible, it is in the best interest of children to be in working households. Living in a working family has a positive impact on children’s educational attainment, mental health, and long-term aspirations. The Government is driving forward labour market interventions that will deliver a step-change in support and help parents to enter and progress in work.

Alongside employment support, the department supports families in work through an exemption from the benefit cap for households earning at least £846 each month. There is also protection for the most vulnerable as those who are caring or are severely disabled are exempt from the benefit cap.

The Government is investing in the future of our children and introducing a fundamental change by removing the two child limit on Universal Credit and therefore reinstating support for all children. This comes alongside a package of measures that will drive down working poverty by raising the minimum wage, creating more secure jobs by strengthening rights at work, and expanding free childcare.

Furthermore, the Government is committed to rolling out Best Start Family Hubs in every local authority by April 2026 and creating up to 1,000 hubs across the country by the end of 2028. Family Hubs will offer universal, open access support for families and connect them to other local services such as healthcare, welfare, early education, and housing.