Colliding caps The interaction between the two-child limit and the benefit cap

Around 140,000 children live in families affected by both the benefit cap and the two-child limit, exposing them to particularly severe levels of hardship. Despite being on the statute book for many years, the two policies are often conflated and there is a lack of understanding of how they interact. This briefing fills that gap. It underlines that, while removing the two-child limit is the most cost-effective way of reducing child poverty, it would have no impact at all on many of the children living in the deepest poverty if the benefit cap was not scrapped too. The briefing also draws on qualitative longitudinal research with affected families, providing insight into the experiences of families affected by both policies and the impact on children.