The Impact of the Two-Child Policy on Parents: A Closer Look
In 2017, the UK introduced the two-child limit (2CL) policy, which stopped additional Universal Credit or Tax Credit allowances for third and subsequent children born after 6 April 2017. This policy affects many families, significantly reducing their income. By April 2023, about 1.5 million children were living in households impacted by the 2CL, leading to an annual financial loss of up to £3,235 per child, expected to rise to £3,455 in 2024-2025.
Research by Nesta, in collaboration with the Institute of Fiscal Studies (IFS), explores how the 2CL policy affects families. This blog post summarizes their findings on the experiences of families dealing with the policy and its impact on children's early learning.
Understanding Family Experiences
Nesta conducted qualitative research by interviewing 35 parents from four local authorities in England (Bristol, Newham, Birmingham, and County Durham). These parents, representing a diverse mix of ethnicities and family structures, shared how the 2CL policy has affected them and their children.
Key Findings:
Severe Financial Hardship The 2CL policy has exacerbated financial struggles for families already under pressure from the rising cost of living and cuts in public assistance. Many parents reported difficulties affording basic necessities, often resulting in debt or sacrificing their own needs to provide for their children. For example, Tiffany, a mother of three, mentioned, "There’s not any money to cover everything. Keeping the roof over my head and the bills paid is difficult."
Reduced Opportunities for Children Children in affected households miss out on enriching experiences that support early learning. Parents noted that their younger children, who do not receive the child element of Universal Credit, have less access to formal childcare, learning resources, and extracurricular activities compared to their older siblings. For instance, Anna, a mother of three, shared that her youngest child hasn’t had the same opportunities for activities like dance or football as her older children.
Strain on Parents’ Mental Health The financial stress caused by the 2CL policy takes a toll on parents' mental health, affecting their ability to provide the support their children need. Many parents expressed feelings of guilt and worry about their children’s missed opportunities. Beth, a single mother of five, described her struggle with depression due to the added financial pressure.
Perceived Unfairness of the Policy Parents overwhelmingly viewed the 2CL policy as unfair and detrimental to their children’s development. Many argued that the policy punished children for circumstances beyond their control and restricted parents’ ability to invest in their children’s futures. Maheen, a mother of four, highlighted that additional financial support would significantly improve her children’s development opportunities.
Looking Ahead
This research by Nesta sheds light on how the two-child limit policy contributes to financial hardship and limits early learning opportunities for children. As the study continues, the IFS will analyze quantitative data to further understand the policy’s impact on children’s school readiness and overall development. We will aim to keep you updated on all things relevant to families, schools and PTAs.
For a deeper dive into Nesta’s research and comprehensive findings, you can read the full report here.
Source: Nesta’s qualitative research on the impact of the two-child limit policy on early learning.
