Another of the key Budget announcements was on the two-child benefits cap, which means that parents can only claim Universal Credit or tax credits for their first two children, with a few exemptions.

Reeves confirmed that the cap on Universal Credit would be lifted from April.

Introduced by the Conservative party to cut costs, the cap has so far been kept in place by Sir Keir Starmer’s Labour administration.

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.