Two-child cap hits more than 70,000 families on benefits

More than 70,000 families lost benefits worth up to £2,780 a year in the first 12 months of operation of the new two-child cap, according to official figures.

Campaigners called for a review of the policy, warning that it would pull 200,000 children into poverty, the majority of them in struggling families in low-income work.

But ministers insisted that the cap was being implemented in a “compassionate” way, with exemptions in cases of multiple births or children born as a result of rape.

Figures released by HM Revenue & Customs and the Department for Work and Pensions showed that by April this year, some 70,620 families had been caught by the cap – about 9% of the total number of claimants.

The vast majority were receiving child tax credit, with just 3% on universal credit, but in both cases they lost the child element of their welfare for third and subsequent offspring born after April 2017 – worth £232 a month for each child.

Some 59% of those affected were in work and 62% were two-adult households. Around 63,000 of the families who lost money were in England, almost 4,000 in Scotland, 3,000 in Wales and 2,000 in Northern Ireland.

But Child Poverty Action Group chief executive Alison Garnham said the new figures showed it was “already having a damaging impact – and at a fast pace”.

“These are struggling families, most of them in work, who will lose up to £2,780 a year -–a huge amount if you’re a parent on low pay,” said Ms Garnham.