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<p>It is not possible to produce a robust assessment of the impact of the two-child limit.</p><p> </p><p>Child Benefit continues to be paid for all children in eligible families.</p><p><strong> </strong></p><p>Relative poverty sets a threshold as a proportion of the UK median income and moves each year as average income changes.</p><p>Typically, a household is in relative poverty if its income is less than 60 per cent of the median household income.</p><p>Absolute poverty, by our definition, is a threshold as a proportion of the UK average income in a given year (2010/11) and moves each year in line with inflation.</p><p> </p><p>This government prefers to look at Absolute poverty over Relative poverty as relative poverty can provide counter-intuitive results.</p><p>Relative poverty is likely to fall during recessions, due to falling median incomes. Under this measure, poverty can decrease even if people are getting poorer.</p><p>The absolute poverty line is fixed in real terms, so will only ever worsen if people are getting poorer, and only ever improve if people are getting richer.</p> |