Universal Credit - mitigation of the two-child limit: Key Details

 The Scottish Government has released draft regulations for a new two-child limit mitigation payment to be implemented for Universal Credit claimants in Scotland. This payment aims to offset the UK government's two-child limit policy, which restricts benefit payments for families with more than two children. The mitigation will provide a monthly payment equivalent to the Universal Credit child element for each eligible child beyond the first two. Applications for this payment will open on March 2nd, 2026, and will be managed by Social Security Scotland. 
Key Details:

    Mitigation Payment:
    The Scottish Government will provide a monthly payment equal to the Universal Credit child element (currently £292.81) for each third and subsequent child in a family impacted by the two-child limit, according to the Scottish Government. 

Application:
Families in Scotland eligible for Universal Credit but not receiving the child element for all their children due to the two-child limit will be able to apply to Social Security Scotland starting March 2nd, 2026. 
National Delivery:
The scheme will be administered nationally by Social Security Scotland, ensuring equal support for all eligible families across Scotland, regardless of location. 
Purpose:
The primary goal of the mitigation payment is to reduce child poverty in Scotland by providing additional financial support to families with more than two children. 
Evidence Base:
The Scottish Government conducted a public consultation to gather feedback on the proposed implementation of the mitigation payment, ensuring a strong evidence base for the legislation.