“Removing the two-child benefit cap will affect nearly 200,000 disabled households that currently receive universal credit (UC) including at least 130,000 disabled children. 40% of UC households affected by the two-child limit policy have at least one claimant or child claiming health or disability benefits.
It is also a step in recognising the value of the welfare system in addressing poverty and improving wellbeing; lessons that should be adopted following the conclusion of the Timms Review on Personal Independence Payment (PIP) in Autumn 2026.
Measures on Motability, applying VAT on top-up payments and Insurance Premium Tax, miss the wider point of the need to urgently address the lack of accessibility in our transport system. Equally, actions to help households save £150 off energy bills are encouraging, but could be better targeted, particularly when disabled households have the greatest energy needs. Ultimately, the budget is a missed opportunity to address deeper, structural barriers for disabled people, which would unlock economic growth and deliver better living standards for all.”