Martin Lewis issues clarification to anyone claiming Child Benefit

Martin Lewis reposted his clarification to X after recent calls for the government to abolish the 'two-child benefit cap'

Martin Lewis has issued clarification to anyone on Child Benefit about what the 'two-child benefit cap' actually means. The Money Saving Expert has explained the difference between Child Benefit rules, the 'two-child benefit limit' and the benefit cap, after the 'two-child cap' made headlines recently.

Mr Lewis helped clear up any confusion surrounding the different benefits, emphasising how the 'two-child benefit cap' is often used inaccurately to explain all three of the distinct benefit matters.

Posting on X yesterday, the Money Saving Expert said: "I see 'child benefit' is trending, yet it's not about child benefit its about the two-child cap on UC, which is totally different."

His clarification comes after the Guardian reported yesterday that ministers are privately ruling out scrapping the two-child benefits cap.

Mr Lewis linked his post to a video he shared last year explaining the general differences between the three types of benefits.

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He said: "Child Benefit is a universal payment made for every child you have. You get £25.60 a week for the first child and £16.95 a week for each subsequent child. [Now £26.05 and £17.25 respectively as of April 2025.]

"Though that is subject to the benefit cap. Plus, there is another restriction on Child Benefit that depends on what the highest earning parent earns.

"Number two is the two-child limit. This is the one that is being discussed in the media. This is the one there's all the political issues all about.

"It should accurately be called the two-child limit for Universal Credit or Tax Credits. This one applies to the benefits that people who have low incomes - whether they're working or not working - get. That's what this is about.

"In simple terms it means if you have more than two children, then you won't get any additional benefit for the cost that they are incurring you on Universal Credit and Tax Credits."

He explained, however, that there are exemptions to this cap, including if your child was born before it was introduced on April 6, 2017.

On April 22, the Guardian reported that it is unlikely the government will abolish this cap - despite charities claiming doing so would lift 350,000 children out of poverty 'overnight'.

The claims come after free breakfast clubs were introduced in 750 schools across the country this Easter - reportedly set to save parents up to £450 a year and help reduce child poverty.

Finally, Mr Lewis went on to explain the third type of child benefit rules - the benefit's cap. He said: "In simple terms, there is a maximum amount you can get on benefits. Crucially, this includes Universal Credit and Tax Credits but it also includes Child Benefit and a whole host of other benefits."

The Money Saving Expert founder urged people to check online for the full list of benefits impacted by the cap to see if they could be affected.