A Step Forward for Children and Mothers: Responding to the scrapping of the two- child benefit cap

Yesterday’s budget announced the full removal of the two-child benefit cap from next April. At Smallwood Trust, we welcomed this decision, having supported campaign actions toward this change, including signing the open letter from the North East Child Poverty Commission.

Scrapping the two-child limit is a massive step, particularly for women who cannot access employment as a route out of poverty and rely on benefits to support their families. At a time when the cost-of-living crisis continues to put enormous pressure on households, this change will have a meaningful impact on the living standards and opportunities of babies, children, and young people. As a specialist women’s funder, we know that child poverty and mothers’ poverty are inseparable: when mothers face financial hardship, children’s outcomes are directly affected, and conversely, improvements in children’s well-being also benefit their mothers. More support for children reduces financial pressure on mothers, particularly single mothers, and strengthens the prospects of whole families.

In October, we convened a Learning Circle bringing together funders, frontline organisations supporting mothers and children, and advocacy groups to strengthen the links between child and gendered poverty. Our ongoing ask is that women and mothers remain at the centre of policy and practice, as children’s well-being does not exist independently of the well-being of their primary caregivers, who are often women.

Our thanks go to everyone who has worked tirelessly toward this change.

You can learn more about insights from our Learning Circle here: https://www.smallwoodtrust.org.uk/wp-content/uploads/2025/11/OCTOBE1.pdf