Universal Credit for families with children
Having children changes Universal Credit in three important ways. First, the household receives a child element, £303.94 per eligible child per month in 2026/27. From April 2026, the previous two-child limit was removed, so all eligible dependent children now generate a child element.
Second, families receive a work allowance, a band of earnings that are completely disregarded before the 55% taper kicks in. This is £710/month where no housing element is in payment, or £427/month where rent support is included. That means working parents keep more of their earnings than childless UC claimants.
Third, registered childcare costs can be reimbursed through UC at up to 85% of the cost, subject to monthly caps. That can make the net cost of working much more affordable.
Child Benefit is separate, always claim it
Child Benefit is administered by HMRC and paid entirely separately from Universal Credit. In 2026/27 it pays £27.05 per week for the first child and £17.90 for each additional child. For a family with two children that is £44.95 per week, around £2,337 per year, in addition to any UC award.
Claiming Child Benefit does not reduce Universal Credit. Both should always be claimed, with Child Benefit claimed directly from HMRC. Child Benefit can be backdated by up to three months.