Important update on of Universal Credit's two‑child limit
The Autumn 2025 Budget announced the removal of the two‑child limit in Universal Credit (UC). This means that UC can now include support for all eligible children in a household, not just the first two.
Council Tax Reduction is calculated using information provided by Universal Credit. We are unable to apply this change to your Council Tax Reduction until Universal Credit has updated your award to include all eligible children.
Because Universal Credit updates do not always happen at the same time as the annual Council Tax billing process, some households may temporarily receive a Council Tax bill based on the previous two‑child limit.
Once Universal Credit has updated your award, we will:
- reassess your Council Tax Reduction automatically
- issue a revised Council Tax bill if your entitlement has changed
If you are concerned about your Council Tax Reduction:
- please check your Universal Credit account first to confirm that your assessment has been updated
- allow time for us to receive the updated information and review all affected claims
You do not need to contact us unless your Universal Credit award has already been updated and your Council Tax Reduction has not changed after a reasonable period.