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Map Shows How Lifting Two Child Benefit Cap Will Benefit Merseyside Children

Child benefit, Universal Credit, and Personal Independence Payment will rise by 3.8% from April, lifting thousands of children out of poverty and costing taxpayers £3 billion annually.

  • On Wednesday, Chancellor Rachel Reeves unveiled a 15 billion benefits plan that raises Universal Credit, PIP, and child benefits and ends the two-child benefit cap.
  • Political pressure over the two-child benefit cap prompted Reeves to abandon welfare reforms after backbench opposition, at a cost of roughly £5 billion, framing the move as a strategy to lift children out of poverty.
  • Payments data show over 3.8 million PIP claimants will see a 3.8 per cent rise, and daily awards increase from £187.45 to £194.55, with Universal Credit gaining a 2.3% uplift this year.
  • Charities estimate the cap reversal could lift 350,000 children from poverty and Bradford leaders say it will benefit around 6,300 families and 22,500 children.
  • OBR projections indicate welfare spending will rise from £333.0 billion in 2025/26 to £389.4 billion in 2029/30, with health and disability benefits increasing to £103.6 billion as changes are implemented in 2026.
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Telegraph & Argus broke the news in Bradford, United Kingdom on Thursday, November 27, 2025.
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