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Usdaw welcomes MPs passing the Bill and sending it to the Lords for scrutiny

Retail trade union Usdaw has welcomed the Universal Credit (Removal of Two Child Limit) Bill passing all stages in the House of Commons, after Chancellor Rachel Reeves announced the move in the Budget. It will be further scrutinised by Peers in the House of Lords before it can become law, and the Government has said it wants to ditch the two-child limit from April.

24 February 2026

0 min read

About 400,000 fewer children will be living in poverty this April, compared with 12 months earlier, as a result of the change, according to analysis by the Joseph Rowntree Foundation. Work and pensions minister Sir Stephen Timms told the Commons the move “is a key step to tackling the structural drivers of child poverty. This Bill, combined with other measures in our child poverty strategy, will lift over half a million children out of poverty”.

Joanne Thomas – Usdaw general secretary says: “Ending the two-child cap will do more than any other measure to lift children out of poverty, and we welcome that this cruel Tory policy is being scrapped. The UK is one of the seven wealthiest nations in the world, yet millions of our kids are growing up in poverty, which is absolutely shameful, particularly with 7 in 10 of them in working households. 

“Labour is turning around a 14-year legacy of Tory failure, when child poverty rose by about 900,000 after 2010. The Government has made a good start by delivering a significant increase in minimum wage rates and helping to make jobs more secure with the Employment Rights Act. All these initiatives should make a real difference to working families, as has the rolling out of free breakfast clubs, new nurseries in primary schools and doubling free childcare to 30 hours a week.”

Notes for editors:

Usdaw (Union of Shop, Distributive and Allied Workers) is one of the fastest growing unions in the TUC and the UK's fifth biggest with around 370,000 members. Most Usdaw members work in the retail sector, but the union also represents many workers in transport, distribution, food manufacturing, chemical industry and other trades www.usdaw.org.uk

For Usdaw press releases visit: www.usdaw.org.uk/news and you can follow us on Bluesky @usdawunion.bsky.social and Twitter/X @UsdawUnion

Summary

Retail trade union Usdaw has welcomed the Universal Credit (Removal of Two Child Limit) Bill passing all stages in the House of Commons, after Chancellor Rachel Reeves announced the move in the Budget. It will be further scrutinised by Peers in the House of Lords before it can become law, and the Government has said it wants to ditch the two-child limit from April.