Full list of benefits not capped by two-child rule – everything you need to know
PARENTS could be missing out on vital support because of a misunderstanding over a benefit claim rule.
A limit is applied to certain benefits, while others do not restrict the amount of children parents can claim for.
We explain everything you need to know.
What is the two child cap?
The cap limits the amount of financial support families can receive to just two kids.
It means that parents can’t claim the child elements of Universal Credit or tax credits worth up to £3,455 per year for third or subsequent children born after April 2017.
Over 1.6million children don’t get £288 a month in extra support due to the rule, according to DWP figures.
Prime Minister Kier Starmer has been facing mounting pressure from his own backbenchers over the cap.
Yesterday, he survived a rebellion in Westminter after rebel MPs tried to defy him by supporting an SNP amendment to the King’s Speech to scrap the two child cap.
Seven Labour MPs who voted against the Government on the amendment have had the whip suspended.
Sir Keir insisted the government must do “the sums” before committing to scrap the policy – and he argued it won’t be a “silver bullet” for fixing child poverty.
Child Poverty Action Group says that scrapping the two-child limit would lift 300,000 children out of poverty and reduce the depth of poverty to 700,000 children.
However, the two-child limit doesn’t impose a limit on the amount of other benefits parents and children can claim.
Even though Universal Credit and tax credit claims are wedded to the cap, six benefits aren’t affected by it and that means families could be missing out on support.
Here’s everything you need to know.
CHILD BENEFIT
Child Benefit is a universal payment made to families for each child.
It is not affected by the two-child limit.
It is paid at two weekly rates – £25.60 for your eldest or only child and £16.95 for any additional children.
If you are claiming child benefit for a child under 12, you also receive National Insurance (NI) credits.
NICs count towards your state pension so claiming the benefit can be useful if you are missing any.
Since 2013, if you or your partner earns over a certain amount, you also have to start paying some child benefit back.
Go over a second threshold and you have to pay it back in its entirety.
This is through what’s known as the high-income child benefit charge (HICBC).
The threshold at which you have to start paying money back is now £60,000.
The rate at which you have to pay the entire allowance back is £80,000, which recently increased from £60,000.
It’s up to you to pay the charge, though, and if you don’t, you can be stung with a nasty bill.
How do I claim child benefits?
APPLYING is straightforward and can be done in minutes at gov.uk or through the HMRC app.
Parents with a newborn baby should make a claim online as soon as possible and could then receive their first payment in as little as three days.
You can also backdate claims for up to three months.
Parents can make a claim and then choose to opt out of receiving Child Benefit payments can still receive National Insurance credits if one parent is not working.
National Insurance credits build up your entitlement to the state pension.
DISABILITY LIVING ALLOWANCE
Disability Living Allowance (DLA) is awarded to children under 16 who have extra care or mobility needs due to a disability.
This benefit is not subject to the two-child cap.
Disability Living Allowance (DLA) for children may help with the extra costs of looking after a child who:
- Is under 16
- Has difficulties walking or needs much more looking after than a child of the same age who does not have a disability
The DLA rate is between £28.70 and £184.30 a week and depends on the level of help the child needs.
DLA is being replaced by other benefits and anyone over 16 must now apply for personal independence payments (PIP).
PERSONAL INDEPENDENCE PAYMENTS
PIP is for individuals aged 16 to 64 with long-term health conditions or disabilities.
It is not affected by the two-child limit.
While it isn’t claimed directly by parents there’s no limit to the number of children over 16 in a household who can qualify.
To qualify for PIP you must have a health condition or disability where you either have had difficulties with daily living or getting around.
It’s expected that these difficulties will continue for at least nine months (unless you’re terminally ill with less than 12 months to live).
The benefit is worth up to £184.30 a week if you are entitled to both parts, so it’s well worth checking to see if you or another family member are eligible.
Are you missing out on benefits?
YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to
Charity Turn2Us’ benefits calculator works out what you could get.
Entitledto’s free calculator determines whether you qualify for various benefits, tax credit and Universal Credit.
MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto’s data.
You can use Policy in Practice’s calculator to determine which benefits you could receive and how much cash you’ll have left over each month after paying for housing costs.
Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.
GUARDIAN’S ALLOWANCE
Guardian’s allowance is paid to individuals bringing up a child whose parents have died.
It is not affected by the two-child limit.
To get guardian’s Allowance all of the following must apply:
- You’re bringing up someone else’s child
- The child’s parents are dead (see conditions for one surviving parent below)
- You qualify for child benefit
The guardian allowance rate is £21.75 a week per child and is paid on top of your child benefit payments.
ADOPTION ALLOWANCE
Benefits for adoptive parents are not subject to the two-child limit.
Your local council might pay this if it determines it is necessary to secure an adoptive home for a child who could not otherwise be readily adopted.
The scheme allows for the payment of a regular allowance or lump sums to adopters under certain circumstances.
These could include where the child has additional needs, requires special care for a disability or behavioural difficulties involving extra expense, or makes adoption possible with existing foster parents who the child has a strong bond with.
The amount of money offered as an adoption allowance will vary and any allowance will usually take into account your financial resources as a family.
OTHER LOCAL WELFARE SCHEMES
Some local authorities provide discretionary welfare assistance that is not affected by the two-child limit.
This includes funding through discretionary housing payments and your council’s Household Support Fund.
Free school meals are also not subject to the two-child limit.
UNIVERSAL CREDIT AND TAX CREDIT EXEMPTIONS
You can qualify for an exception or special circumstances for each third (or subsequent) child if:
- You have adopted them or other children in your household
- You receive guardian’s allowance for them or other children in your household
- They are the second (or more) child born in a multiple-birth
- They or other children in your household are the offspring of one of your children who is under 16 years old
- They or other children in your household are not your child or stepchild, and you look after them under a court order
- They or other children in your household are not your child or stepchild and you look after them under an arrangement with Social Services (except for formal foster care)
- They were conceived as a result of rape, and you do not live with the perpetrator
Parents of a third (or subsequent) disabled child can also claim the extra disabled child element of Universal Credit.
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