Groups now urge cash freed up to be spent supporting struggling families
Campaigners and charities are hailing a victory after the two-child cap was ditched in an autumn budget that offered few other concessions.
Chancellor Rachel Reeves announced measures to scrap the cap, decried as "cruel" and a major factor in impoverishing families.
Scottish campaigners have long opposed the policy, believing it to be uncompassionate and contradicting child poverty targets.
And anti-poverty groups say eight years of the policy have cost low-income families dear.
The Scottish Government had already committed funding to mitigate the policy and has promised to use this money to tackle child poverty if the two-child limit was scrapped at Westminster.
Campaigners have said that effective reallocation of this cash must now be a priority.
Poverty Alliance chief executive Peter Kelly said scrapping the controversial policy was the right thing to do. For eight years, he said this “cruel policy” has severed the link between what families across the country need and the support they are entitled to, pushing children into poverty and limiting their potential.
He added: “Campaigners across Scotland have been unified in their demand to scrap the two-child limit and we are pleased that the UK Government has listened, sending a strong message that every child in this country matters. The end of this policy must be the starting point of reform which ensures that our social security system truly provides security.
“This decision also frees up money earmarked for the mitigation of the policy in the Scottish budget. Coupled with the additional £820 million allocated to the Scottish Government in this budget, this will allow further investment in the action we know is needed to meet our child poverty targets, including increases to the Scottish Child Payment.
Kelly said that boosting the minimum wage, as also announced in the budget, will help low-paid workers who are struggling to cover basic costs. But the UK Government must also raise revenue to invest in shared national priorities, like tackling child poverty and increasing living standards.
He said: “It’s right that the chancellor has turned to those with the biggest assets to contribute more. This is a positive step towards building a fairer system of taxation, but we need to go much further, with a bold, renewed approach to tax that puts justice and compassion at its heart."
John Dickie, director of Child Poverty Action Group in Scotland, called for the cash to be used in Scotland to further boost social security for families.
Speaking on behalf of the End Child Poverty Scotland Coalition, he said: "The UK chancellor’s decision to scrap the cruel two-child limit is absolutely the right thing to do. The Scottish Government has committed to mitigating the two-child limit so the very welcome decision to abolish the policy at source frees up over £150m in the 2026/27 Scottish budget.
“Ministers have already promised to use this money to tackle child poverty and we urge them to use it to further boost Scottish social security for families, for example by increasing the Scottish Child Payment toward the £40 a week that is needed by the end of this parliament.
“It is vital that the money freed up today is spent on increased social security support and that it adds to existing commitments to fund the childcare, whole family support, employment and housing that are also crucial to families."
Citizens Advice Scotland’s chief executive Derek Mitchell called it “welcome news” ahead of winter.
“As hundreds of thousands of people across Scotland face this winter desperately worried about how to afford the essentials we all need, it was imperative that this budget delivered hope to those experiencing the most harm,” he said.
“The two-child limit has been a cruel and pernicious policy that has forced families into poverty. Scrapping this will be transformational for around 20,000 children in Scotland, and will also enable the Scottish Government to further invest in measures to tackle child poverty – this is such welcome news.”
Claire Telfer, Save the Children’s head of Scotland, called the move “bold”.
“It will keep 20,000 children in Scotland out of poverty,” she said. “For too long, children have been penalised by this pernicious policy, through no fault of their own. Today’s announcement sends a clear signal that all children's lives are valued. This is a moment of hope for families struggling to make ends meet.
"The Scottish Government had rightly committed funding to mitigate this policy and promised to use this money to tackle child poverty if the two-child limit was scrapped at source. We urge the Scottish Government to use the money to further strengthen social security, as a positive step to deliver better childhoods and a better future for all of us.”
Satwat Rehman, chief executive of One Parents Families Scotland, said: "We welcome that the UK Government will scrap the two-child limit - bringing an end to a discriminatory policy that has pushed children in larger families into poverty since 2017.
“Ending it is the only way to uphold every child’s right to social security without discrimination.
"Families have lived with the harsh reality of this policy for far too long.”
Meanwhile Gillie O’Rourke, president of Soroptimist International, which represents the views of women in the UK and Ireland, said that for women, the removal of the two-child benefit cap – and the associated rape clause – not only supports their children’s wellbeing by ensuring they have the resources they need to thrive, but it also protects their dignity and provides greater long-term financial stability, helping to reduce the pressure that can lead to reliance on food banks or affect mental and emotional health.
She added: “We hope this move will empower women, giving them increased stability, dignity, and the means to provide for their families, while also creating opportunities to plan for the future with confidence and security.”
