Why it matters: The two-child limit excludes most households with a third or subsequent child born on or after 6 April 2017 from claiming Universal Credit. Charities warn the policy is pulling increasing numbers of children and families into poverty.
By the numbers:
Some 1,020 households in Ipswich were affected by the policy in April, affecting 3,570 children – around 21 per 1,000 households in the constituency.
In Central Suffolk and North Ipswich, 450 households were affected, with 1,610 children impacted – around 11 per 1,000 households.
While Ipswich was above the 18 per 1,000 average rate across England and Wales, Central Suffolk and North Ipswich was below the national average.
Across Great Britain, nearly 1.7 million children were living in some 470,000 households affected by the two-child limit in April - up from around 1.4 million children in nearly 386,000 households the year before.
The details: The policy was also used to restrict Child Tax Credit benefits, which closed in April. More than half (59 per cent) of households affected by the policy across Great Britain were in work in April, with at least one claimant in the household earning.
In Ipswich, 650 (64 per cent) of the affected households were in work, while in Central Suffolk and North Ipswich, 280 (62 per cent) of affected households were in work.
Around 360 children are living in 100 households in Ipswich that are affected by both the two-child limit and the overall benefit cap. In Central Suffolk and North Ipswich, 100 children are living in 20 households affected by both policies.
What they're saying: Child Poverty Action Group chief executive Alison Garnham said the two-child limit pushes children into poverty, "cutting them off from opportunity".
She warned: "The policy forces families to live on less than they need – both those with jobs and those who can't currently work because of very young children – and abandons them to hardship."
Julia Pitman, head of policy and research at Action for Children, said "the relentless impact of the two-child limit continues to grow", as more children are now "suffering its consequences".
The big picture: Labour has long been divided over the issue, with Sir Keir Starmer ruling out scrapping the cap in 2023. He then said Labour wanted to remove it, but only when fiscal conditions allowed.
Following Labour's landslide victory last July, the Prime Minister refused to bow to pressure within his party, and suspended seven MPs for six months for voting with the SNP to scrap the cap.
However, the narrative started to shift in May, with Sir Keir reported to have asked the Treasury to see how scrapping it could be funded. The Education Secretary told Sky News on 27 May that lifting the cap is "not off the table" and "it's certainly something that we're considering".
What's next: The Government is due to publish its child poverty strategy in the autumn. Charities are urging ministers to scrap the two-child limit as part of these plans.
The publication of Labour's child poverty strategy was delayed from the spring to autumn, fuelling speculation the Government wants to use the next budget to scrap the cap.
It comes after the Scottish Government announced in June it will effectively end the two-child cap from March 2026.
The other side: A Government spokesperson said it would reform the "broken social security system" to help those who can work into well-paid jobs.
They added: "We are also rolling out a national network of life-changing family hubs for children across the country as well as expanding free school meals and supporting 700,000 of the poorest families by introducing a Fair Repayment Rate on Universal Credit deductions."
The bottom line: The two-child limit is affecting more than 5,000 children across the Ipswich area, with varying local rates compared to the national average, as pressure grows on the Government to abandon the policy – with recent signals suggesting Labour may be reconsidering its position.
