The chancellor added that her government would removed the “vile, dehumanising and cruel” rape clause.
The Scottish government has pledged to mitigate the cap north of the border by offering a new benefit – the Two-Child Limit Payment – to affected families from March next year.
The UK government’s decision to scrap the cap is expected to save the Scottish government about £155m in the next financial year.
However, the Fraser of Allander Institute, an independent economic research unit at the University of Strathclyde, has estimated, external that scrapping the cap could cost the Scottish government an additional £34m in 2026-27 because it would mean more people were eligible for devolved benefits.
Taken together, that would leave Holyrood with a saving of £121m.
First Minister John Swinney has pledged to use any savings from the removal of the cap to tackle child poverty.
Responding to the UK Budget, Scottish Labour leader Anas Sarwar said: “This budget means child poverty down, energy bills down, wages up and austerity rejected.
“Thousands of Scottish children lifted out of poverty, £150 off energy bills, £300 for those most in need, increases in the living wage and £820m extra for the Scottish government.”
Scottish Conservative leader Russell Findlay said: “Labour’s £26bn tax bombshell continues their sustained attack on hard-pressed workers and businesses.”
Scottish Green co-leader Ross Greer said: “This was a badly missed opportunity and a lesson in mediocrity. Labour promised little and delivered even less.”
