Working families' bills will rise to fund £3.5billion 'benefits payday' as two-child cap is lifted, Tories warn

By SAM MERRIMAN, POLITICAL CORRESPONDENT Published: 00:36, 6 April 2026 | Updated: 00:42, 6 April 2026 Hard-working families will see their bills rise thanks to today's 'benefits payday', when the two-child benefit cap is lifted, the Tories warned on Sunday night. The cap, which was brought in by the Conservatives to restrict child benefits to the first two children in most families, is being axed at a cost to taxpayers of £3.5billion a year. From today, families that qualify could get a payment equal to about £300 a month for each additional child. It comes as working households face increases to everyday bills and petrol prices. The Tories have criticised Labour's decision to scrap the two-child cap, which is worth £3,647 per child per year, warning it will 'cost billions, reward worklessness and leave working families picking up the tab'. Research by the Conservatives suggests the benefit windfall may be heavily concentrated, with jobless families in Leeds, Manchester, Birmingham, Bradford and Glasgow set to receive more than £200million extra in child benefits annually. The largest families may qualify for more than £10,000 a year in additional benefits. The Tories said that the overall cost of lifting the cap will be 'funded by Labour's endless tax rises on working families and businesses'. The cap, first introduced in 2017, limits parents to claiming universal credit or tax credits for only their first two children - but was axed by Chancellor Rachel Reeves in her last Budget (file photo) Tory leader Kemi Badenoch called the move 'another handout to those on benefits' and committed to reinstating the cap should the Tories win the next election  Party leader Kemi Badenoch said: 'While working people struggle with rising fuel and food prices, Keir Starmer is giving another handout to those on benefits. 'The Conservatives believe in fairness and that those on welfare should have to make the same choices about their family as those who aren't. 'That's why we would reinstate the two-child cap and use the savings to bolster our Armed Forces.' The cap, which was introduced in 2017 and limits parents to claiming universal credit or tax credits for only their first two children, was axed by Chancellor Rachel Reeves in her last Budget. Labour claims lifting the cap will pull 450,000 children out of poverty immediately. However, analysis last week suggested hard-pressed families could be almost £1,000 worse off this year as they face near across-the-board rises in their bills in what has been dubbed 'Awful April'. Higher council tax, water and energy bills, broadband and petrol prices will leave families £913 worse off in 2026, the Tory analysis found. Shadow Chancellor Sir Mel Stride said: 'When families are making difficult choices to make ends meet, Labour's decision to give those on benefits a significant pay rise raises serious questions about fairness. 'This is Rachel Reeves' benefits payday – paid for by working families.' No comments have so far been submitted. Why not be the first to send us your thoughts, or debate this issue live on our message boards. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. We’ll ask you to confirm this for your first post to Facebook. You can choose on each post whether you would like it to be posted to Facebook. Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy.