How Oldhamers are set to benefit from the lifting of the two-child benefit cap

Reporter: Charlotte Hall, Local Democracy Reporter
Date published: 24 November 2025


Around 10,000 kids will benefit from the lifting of the two-child benefit cap in Oldham, according to the local authority. 

The borough currently has areas with some of the highest levels of child poverty in the North.

Around half the kids in the borough – around 30,000 in total – are estimated to be living in deprivation. 

In areas such as Coldhurst, two in every three children (66pc) come from families that are struggling to make ends meet. 

The two-child benefits cap, which stopped parents from claiming child tax credit or universal credit for more than two children, has played a role in national child poverty levels, according to most Greater Manchester MPs and more than a hundred charities. 

But yesterday, Labour chancellor Rachel Reeves announced the government would finally be lifting the policy as part of her budget announcements. 

New government data shared with the Local Democracy Reporting Service indicates the change could lift around 6,020 children in Oldham West, Chadderton and Royton, and around 4,910 children in the Oldham East and Saddleworth constituency out of poverty. 

Debbie Abrahams, the MP for Oldham East and Saddleworth, has welcomed the change, though she warned that a ‘comprehensive Child Poverty Strategy needs to go much further’.  

In a joint statement released with MP Helen Hayes, the two chairs of the Education Committee and Work and Pensions Committee said: “Removing the two-child limit is very welcome.

"It will almost immediately lift hundreds of thousands of children out of poverty and stop even more being drawn into it. 

“The policy was directly linked to damaging the opportunities of a generation of children, who were dragged into poverty through no fault of their own.

"The fact that nearly three-quarters of children living in poverty are from working families is rarely said.

“However, many families will very quickly come up against the benefit cap which puts a maximum limit on the benefits a working-age household can receive.

"Cash support through the social security system is essential to alleviate poverty but the comprehensive Child Poverty Strategy needs to go much further and wider, involving all government departments.”


Do you have a story for us? Want to tell us about something going on in and around Oldham? Let us know by emailing news@oldham-chronicle.co.uk , calling our Oldham-based newsroom on 0161 633 2121 , tweeting us @oldhamchronicle or messaging us through our Facebook page. All contact will be treated in confidence.