Nearly 1,500 families hit by 'two-child' support rule

The two-child limit restricts child allowances in universal credit and tax credits – worth £2,935 per year – to the first two children in a family unless the children were born before April 6, 2017 when the policy came into force.

Department for Work and Pensions (DWP) figures show that 940 households with three or more children in Hartlepool were receiving Universal Credit in April, and 460 received Child Tax Credits – 1,420 in total.

The Child Poverty Action Group (CPAG) estimate that this means there are 2,462 children in families affected by the policy – among 1.2 million nationally.

CPAG estimates that around one in nine children in the area are impacted by the cut-off – above the average across the UK, of one in 12.

It is calling for the two-child limit be scrapped, branding it one of the biggest drivers of rising child poverty.

Alison Garnham, chief executive of the charity, said: "The two child-limit is piling on the pain for affected families.”

The DWP said over eight million households on benefits will receive the first instalment of the £650 Cost of Living payment, with millions getting at least £1,200 in extra support.

A spokesman said: “This policy means families on benefits are asked to make the same financial decisions as families supporting themselves solely through work, including considering our comprehensive childcare offer for working parents and child benefit for all children."