THE two-child limit on benefits is entrenching poverty and harming the life chances of children, according to a damning new report.

The Every Penny Counts study, commissioned from Unity Consulting by Scotland’s largest social housing provider, the Wheatley Group, looked at the often-devastating impact that the two-child cap can have on the finances of tenants.

Interviewing 160 families affected, researchers found that three-quarters said the policy had directly caused financial hardship, nearly two-thirds (64.6 per cent) had been forced to use a foodbank and 84.6 per cent said they had been forced to skip meals or miss paying bills such as rent and council tax to get by.

The impact on children was just as pronounced, with 28.3 per cent saying their children had missed meals, 70.8 per cent had gone without activities such as after-school clubs and 61.3 per cent had missed out on clothing.

The Wheatley Group’s Steven Henderson said: “The two-child cap, introduced in 2017, has had a profound impact on families across the UK. By limiting the amount of child tax credit or universal credit that parents can claim, it has pushed many families deeper into poverty.”

One Parent Families Scotland’s Satwat Rehman said: “The Westminster two-child limit policy is a stark reminder that economic austerity often targets the most vulnerable, trapping larger families in poverty and stripping children of their right to a fair start in life.

“Immediate action in the UK Budget to abolish the two-child limit is essential to prevent further harm and ensure that all families have the support they need.”

Unity Consulting’s Dr Tommy Kane said: “This research represents a damning assessment of the two-child limit.

“Child poverty is being entrenched and exacerbated by this policy and, as a result, the life chances of hundreds of thousands of children are being hindered and held back.

“This policy was rightly described as morally odious and it should be scrapped. It makes no sense socially or economically. It is designed to punish families and, sadly, that is exactly what is happening.

“If Labour does not scrap it, their government will preside over an increase in child poverty, which will have a catastrophic impact on the families and children affected.

“The Labour government must listen to the moral and economic arguments and end the two-child limit when they unveil their first Budget.”