Campaigners have lost a High Court challenge to the government’s two-child limit on some benefits.
Lawyers representing three families had argued that the policy was incompatible with human rights law.
But a judge has ruled that limiting tax credits and universal credit to a family’s first two children is lawful.
However, Mr Justice Ouseley’s ruling also accepted a claim that the rules relating to children in kinship care arrangements were unlawful.
These regulations allow an exception to the two-child rule for families who look after children of relatives – but only if they are the third or subsequent child.
Families who take in a relative’s child and subsequently have children of their own, still lose out on benefits, under the policy which came into effect last year.