Children in Scotland welcomes Scottish Government decision to end the two-child benefit cap

Children in Scotland has today welcomed the Scottish Government’s commitment to end the two-child benefit cap, describing the move as a positive step towards ending child poverty in Scotland.

Announcing the decision during the Scottish Budget, finance secretary Shona Robison said the “pernicious” cap on benefits will be scrapped in Scotland by 2026, helping to lift more than 15,000 children out of poverty.

Originally implemented by George Osborne in 2017, the UK-wide two-child limit currently restricts child tax credit and universal credit to the first two children in most households, disproportionally affecting low-income families.

The charity, which represents more than 400 member organisations working with and for children and young people, was also pleased to see a focus on education within the budget, as the Scottish Government outlined plans to bring breakfast clubs to more primary schools, expand free school meals to primary 6 and 7 children from low-income families, and also provide £120million to head teachers to address the poverty attainment gap.

Additionally, the proposed £29million fund for an Additional Support Needs (ASN) plan, which would provide training for more teachers, is another welcomed move.

Having been campaigning for the two-child limit to be scrapped for many years, particularly through its work with the End Child Poverty Coalition (click here for more), Children in Scotland now wants to work closely with the Scottish Government to further tackle the wealth inequalities impacting an estimated one in four children on a day-to-day basis.

Children in Scotland Chief Executive Dr Judith Turbyne said: “It’s really positive news from the Scottish Government that they are committed to scrapping the two-child benefit cap. We also welcome the renewed commitment to combating child poverty.

“Now is the time to put children’s rights at the centre of our child poverty work, and we look forward to engaging with the Scottish Government on how to do things differently so that we can really deliver on that promise.”

Case study: How poverty impacts children and young people

Since Highland Action for Little Ones (Halo) launched in January 2023, it has supported more than 2,000 children, providing essential resources such as clothing, shoes, toiletries, and other basic essentials that are often taken for granted.

Mel Thomson, Chief Operating Officer at the charity, has witnessed first-hand the resilience shown by families.

She said: "The impact of poverty on children is profound and far-reaching. At Halo, we see this every day – families struggling to make ends meet, often working multiple jobs while balancing childcare, but still finding it difficult to meet their children’s basic needs.

“The rising cost of food, energy, housing, and childcare has placed an unbearable strain on household budgets, forcing families to make heartbreaking choices between essentials like heating or feeding their children. No family should have to face these choices, and no child should grow up without access to the basic necessities of life.

"The number of referrals we receive each week is growing steadily, and is a clear reflection of the increasing financial pressures families are facing. The need for items like clothing and shoes has skyrocketed. These are not luxury items – they are fundamental to a child’s health, self-esteem, and ability to engage in school and social activities.

"The rapid growth in demand speaks volumes about the increasing number of families struggling. Each referral tells a story of a family doing their best but still falling short in the face of rising living costs."

Click here to find out more about the work of Highland Action for Little Ones