New data from the Department for Work and Pensions (DWP) shows that 165,000 families are currently affected by the benefit cap, which limits the total amount of welfare support they can receive. On average, these families face an £80 reduction in their entitlement. This number has risen by 53,000 families since February 2026, marking a 48% increase. The DWP attributes this increase to two key changes: the removal of the two-child benefit limit, which previously restricted welfare payments for families with more than two children, and a rise in the basic Universal Credit rate that was above the rate of inflation this year. The benefit cap was last increased in 2023 to £1,835 per month for most couples or claimants with children, or £22,020 per year. In Greater London, the cap is higher to account for the region's higher cost of living. However, the cap has remained frozen since 2023, meaning it has not kept pace with inflation for the fourth consecutive year. Unlike most other benefits, there are currently no plans to adjust the cap in line with inflation, which has left many families struggling to meet rising living costs. The government is legally required to review the benefit cap every five years, with the next scheduled review set for November 2027. While this timeline is fixed, ministers have the authority to review the cap at any time. Earlier this year, the DWP released analysis showing that the removal of the two-child benefit limit would leave 50,000 families with no increase in their income, as they were already at the cap. An additional 20,000 families would see only a partial increase in their income due to the policy change, which took effect in April 2026. Iain Porter, a senior policy adviser at the Joseph Rowntree Foundation (JRF), has called on the government to take swift action to help children in deep poverty. He emphasized the need for a guaranteed minimum level within Universal Credit to prevent benefit payments from being reduced too much by the cap. A DWP spokesperson stated that removing the two-child limit is part of a broader strategy to tackle poverty, including initiatives like Free School Meals, expanded childcare support, and a £1 billion Crisis and Resilience Fund. The spokesperson described the benefit cap as a balanced measure that encourages personal responsibility while still offering a strong safety net for those most in need.