“Scottish tax and benefit policies working to reduce child poverty … but progress falls far short of 2030 targets“
Responding to yesterday’s (2 April 2026) IFS Labour market, living standards and poverty trends in Scotland report the Director of Child Poverty Action Group (CPAG) in Scotland, John Dickie said:“As this IFS briefing makes clear child poverty is lower in Scotland than the UK as a whole as a result of very welcome devolved tax and benefit policies, not least the introduction of the Scottish child payment, as well as lower housing costs.
“But the bottom line is one in five of our children still live in poverty, far short of the 2030 target of fewer than one in ten agreed by all the Holyrood parties. As the IFS state clearly the most direct way for the next Scottish government to further reduce child poverty is to increase devolved benefits.
“That’s why we are calling on all the Holyrood parties to commit to immediately increase the Scottish child payment to £40 a week as the first step toward doubling it by the end of the Parliament.”
Mr Dickie continued: “The IFS analysis echoes what parents tell us – that a mix of improvements to benefits, labour market opportunities and public services are all needed to protect them and their children from poverty.
“The next Scottish government will need to go further on all three if it is serious about ending the scandal of child poverty in a rich country.”
Responding to concerns that increasing Scottish child payment might weaken incentives to work the campaigners point to recent evidence published by the London School of Economics that concluded there is no evidence that the Scottish child payment (SCP) has reduced labour supply and that “concerns that the SCP creates work disincentives are overplayed“.
Previous analysis by the Scottish government also found the Scottish Child Payment was ‘not negatively affecting labour market outcomes at scale in the economy‘.
Education, Children and Families Convenor, Cllr James Dalgleish writes about work to address child poverty across schools and communities:
It has a been ten years since the introduction of our 1 in 5 Raising Awareness of Child Poverty campaign – ambitious and extensive work to tackle the stigma associated with poverty and to support families and children.
We built on this in 2018 with the rollout of our Making Education Equal for All framework, providing schools with practical guidance on how to help those in their communities living in poverty. I’m pleased that an updated version has just been launched.
A decade on and around 18,000 children and young people citywide are still living in poverty. It is hard to comprehend what this means day to day unless you’ve seen or experienced it first-hand. The tired faces of children starting the school day with an empty tummy, the endlessly forgotten school trip money – and on top of this the extra burden of shame, isolation and exclusion that living in poverty can bring.
It is unacceptable that this is Edinburgh’s reality and it is imperative that we continue to do everything we can to level the playing field for all children and young people.
It is positive that in the last ten years, the action we’ve taken has narrowed the poverty related attainment gap, helped more learners to take part in activities and to achieve, and supported families with their wellbeing and finances.
Reducing the cost of the school day – including removing/reducing the cost of uniform, trips and extra-curricular activities has been a priority. We went even further last year, when we removed the requirement for branded school uniform – minimising unnecessary costs and reducing pressure on family finances.
Our Active Schools teams provide extra-curricular sport activities, before and after school and at lunchtimes at no charge. We have also invested in musical instruments to enable more pupils to learn an instrument and to progress – it is fantastic that those who wouldn’t have done before, are now taking part in our ensembles.
I firmly believe that our schools should be a place of equity, where regardless of a child’s background, where or who they live with – they have every opportunity to achieve their goals and ambitions.
There is still a long way to go to remove poverty-related barriers. We are committed to doing all we can to make sure that all children and young people in Edinburgh have equal access and opportunities to participate in, and make the most of, their school experience – and every chance to succeed.
This article fist appeared in the Edinburgh Evening News
Campaigners have called for a Minimum Income Guarantee and an immediate increase in the Scottish Child Payment that will lift thousands out of poverty.
He said: “Poverty is a profound injustice that robs people of what they need to build a decent life for themselves and a better future for our country. These figures show that MSPs in the next Scottish Parliament need to invest much more in the social foundation we all rely on.
“Because of changes in the way the figures have been worked out, we have to be cautious about the comparisons we make. But they show some welcome progress over the last few years, with the overall number of people in poverty falling by about 130,000 since 2021/22, and the number of children in poverty from 540,000 to 420,000.
“But we have serious concerns that those numbers could increase again, as people face yet another energy crisis and the prospect of rocketing living costs across the board.
“The figures show that there are 630,000 people in severe poverty – with children making up 150,000 of them. It is simply wrong that so many of our fellow citizens find themselves pushed so close to deprivation.”
The Poverty Alliance repeated its calls to boost the Scottish Child Payment to £55 a week.
Peter Kelly said: “Our new MSPs will have a legal responsibility to make sure that fewer than 10% of Scotland’s children are in poverty by 2030/31. Today’s figures show that 21% of our children are living with that daily injustice.
“We simply cannot allow this to continue. The Scottish Government can help by strengthening the support we give to households with children, and the UK Government can help by scrapping the unjust benefit cap.
“And over the course of the next Parliament, we will continue to build public support for real Living Wages and a Minimum Income Guarantee that will make sure everyone has what they need to use their talents for the benefit of themselves, their households, and all of us.”
Responding to today’s statistics on household incomes and poverty which show one in five children in Scotland are trapped in poverty, Chief Executive of Children First, Mary Glasgow said: “A small drop in child poverty does not change the urgent need for action to tackle Scotland’s childhood emergency and meet Scotland’s 2030 child poverty target.
“It is not acceptable that one in five children in Scotland are living in poverty. It has a devastating impact on children’s mental health, wellbeing, education and prospects that can last into adulthood. Reducing child poverty is an investment in Scotland’s future, improving public health, strengthening communities and reducing public costs in the long term.
“In the run up to the election, every political party must prioritise policies that support families, strengthen incomes and uphold Scotland’s commitment to eradicating child poverty.”
Commenting on today’s latest official poverty statistics, Debbie Horne, Scotland Policy and Public Affairs Manager at Independent Age said: “Today’s statistics show there are still too many pensioners living in poverty in Scotland.
“As the national charity supporting older people on low incomes, we know that older people are skipping meals, washing in cold water and not turning the heating on. This is wrong and a social injustice.
“As the Holyrood elections approach, all political parties must prioritise action to reduce pensioner poverty. This should start with a national strategy, a plan setting out the key actions to reduce poverty in older age and act as a map for how we will get there.
“They must also pledge to improve the social security support for older people on low incomes, and commit to supporting older people improve the energy efficiency of homes.
“We also urge the UK Government to introduce a social tariff for energy across the whole of the UK to reduce the cost of heating for older people on low incomes. The UK Government must also improve the take-up and adequacy of the payments they administer to older people.
“The levels of poverty in later life are too high in Scotland, and with around 1.7 million older people now in poverty across the UK, today’s figures must be a call to action.”
TRUSSELL commented: “It’s encouraging that child poverty is falling in Scotland. It shows the power of investing in social security.
“But it’s not acceptable that 1 in 5 children are locked in poverty. All parties must commit to decisive action to ensure every child has a decent start in life.”
Cara Hilton, Senior Policy and Public Affairs Manager at Trussell, said: “Today, the Family Resources Survey has revealed a heartbreaking injustice; persistently high numbers of people across Scotland are trapped in the grip of severe hardship.
“While the latest figures indicate that some people are getting back on their feet, the numbers of people facing hunger in our communities are still too high. As we find ourselves yet again facing uncertain times, we know that progress can be too easily undone. People just surviving could once again be pushed over the edge if the price of food and bills increases.
“Food banks in our community provided more than 220,000 food parcels in Scotland in 2025 – that’s 64% more than in 2015. These new figures from the government confirm that 500,000 people are facing hunger across Scotland. This isn’t right.
“With the Holyrood election just six weeks away, Trussell is calling on all political parties to commit to building a Scotland where everyone can afford the essentials and where every child has a decent start in life.
“This should include immediate investment to increase the Scottish Child Payment to £40 a week, increasing to £55 by the end of the next Holyrood session. We need the Scottish government to build firmer foundations for people on the lowest incomes so all of us have the support we need to thrive.”
Latest poverty statistics published
Two poverty statistics publications were released by the Scottish Government yesterday. Poverty and income inequality in Scotland 2022-25 covers the period up to March 2025, presenting poverty rates for children, working-age adults and pensioners.
Methodological changes have been applied to the statistics in this report as the Department for Work and Pensions have linked the source data from the Family Resources Survey to administrative records on social security benefits.
As a result, there have been revisions to previously published poverty rates back to 2021/22, and further revisions are planned as part of on-going development work. Users should therefore note that caution is needed when interpreting the statistics to assess trends over time.
The most recent three-year averages for 2022-25 show that:
Around 17 per cent of Scotland’s population (940,000 people) were living in relative poverty after housing costs. This was 15 per cent (840,000 people) before housing costs. Poverty rates for Scotland’s population have been broadly stable for around a decade.
Children are more likely to be in relative poverty: 21 per cent of children are in relative poverty after housing costs, compared to 13 per cent of pensioners and 18 per cent of working-age adults. Children in relative poverty are more likely to be in a working household; 75% of children in relative poverty have at least one person working in the household while 25% have no-one in household working.
The median household income before housing costs was £707 per week and after housing costs was £636. Prior to 2021/22, median incomes had increased slowly but steadily since the recession in 2008/09.
Persistent Poverty in Scotland 2010-24 presents statistics on people who live in relative poverty for at least three out of the last four years. The latest figures show that around one in ten people in Scotland (11 per cent) were in persistent poverty, after housing costs, between 2020 and 2024. Persistent poverty rates were highest for children (17 per cent), and lower for working-age adults (10 per cent) and pensioners (9 per cent).
Persistent poverty is an important measure because the longer someone is in poverty, the more it impacts on their health, well-being, and overall life chances. These impacts can affect an individual throughout their lifetime.
Further information on the two publications is set out below:
This Poverty and Income Inequality in Scotland publication contains statistics on poverty, child poverty, poverty risks for various equality characteristics, household income and income inequality for Scotland. This report also includes statistics on household food security. The data comes from the Department for Work and Pensions’ Family Resources Survey (FRS), Households Below Average Income dataset. Comparable UK income and poverty figures are published on the same day by DWP.
Statistics from this report have been revised, back to 2021/22, due to a methodology change. The FRS is now linked to administrative data, which means the majority of FRS responses for benefit income and tax credits have been replaced with data from DWP’s administrative sources. Further years of linked estimates back to survey year 2018/19 will be published in summer 2026 in a follow up release. The absolute poverty measure has also been amended as a result of the data linkage; full details can be found in the report.
This publication has been designated as official statistics in development in line with the other devolved administrations in order to acknowledge the changes to the methodology and that there will be a period of flux as further methodological changes are implemented. Future changes are announced by DWP in their release strategy, which is updated periodically as plans develop. A statistical blog has been published on the Scottish Government website to inform users of developments.
Figures are presented in the main report are three-year averages of each estimate. Three-year estimates are better to identify trends over time. The four child poverty measures in the Child Poverty (Scotland) Act are based on single-year figures. These statistics are available in the reference tables and in the child poverty summary.The single-year estimates exhibit more year-on-year fluctuation compared to the three-year averages and should be interpreted with caution.
This Persistent Poverty in Scotland publication presents estimates of the proportion of people in Scotland who live in persistent poverty. The data comes from the Understanding Society Survey, and the latest statistics cover the period from 2020 to 2024. Statistics from this report are badged as official statistics.
Poverty statistics are used by the Scottish Government and other organisations to monitor progress in tackling poverty and child poverty, and to analyse what drives poverty and what works for tackling poverty and income inequality.
Relative poverty: A person is in relative poverty if their current household income is less than 60% of the current UK median. Relative poverty statistics fall if income growth at the lower end of the income distribution is greater than overall income growth.
Absolute poverty: A person is in absolute poverty if their current household income is less than 60% of the UK median in a given reference year, adjusted for inflation. Absolute poverty statistics fall if low income households are seeing their incomes rise faster than inflation. Due to the structural break introduced by the data linkage the reference year for absolute poverty has been moved from 2010/11 to 2024/25.
Combined low income and material deprivation identifies the proportion of children in households with incomes below 70% of the median UK income and going without certain basic essential goods and services.
Persistent poverty identifies the number of people in relative poverty for three or more out of four years. People who live in poverty for several years may be affected by it throughout their lifetime.
The poverty publications present poverty figures before and after housing costs. Before-housing-costs figures are a basic measure of household income from earnings and benefits. After-housing-costs figures subtract spending on rents, mortgage interest payments and other unavoidable housing costs from this basic income. In Scotland, poverty statistics focus mainly on poverty after housing costs.
Supporting families at risk of poverty and improving outcomes for children are at the heart of a funding package totalling more than £7.5 million.
The Scottish Government investment spans three key programmes, each designed to address the root causes of child poverty and give families the tools they need to thrive.
The funding for 2026-27 is:
£2.2 million for the Whole Family Support through General Practice (WFSGP), doubling its reach to more families across the most deprived parts of Glasgow. The programme supports families to increase wellbeing, and build financial resilience
£4.2 million to strengthen NHS Scotland’s employability opportunities and deliver 200 placements for job seeking parents, helping them develop the skills and confidence needed to enter or return to the workforce
an additional £1.1 million for the Family Nurse Partnership, enabling the programme to reach up to 500 additional parents. It supports young first-time parents often facing challenging circumstances to connect with community resources and to improve their financial situations.
We are committed to eradicating child poverty in Scotland.
Our new Tackling Child Poverty Delivery Plan builds on progress and sets out a broad range of actions to help parents.
The package forms part of the Scottish Government’s new Tackling Child Poverty Delivery Plan 2026-31 which aims to support parents to increase their incomes and reduce the burden of everyday costs, on top of existing work, helping to keep an estimated 100,000 children out of relative poverty in 2026-27.
This builds on existing Scottish Government action which has already reduced relative child poverty rates in Scotland to the lowest levels in almost a decade – with rates nine percentage points lower than the UK in 2023-24.
We want to ensure that no child in Scotland grows up in poverty.
Watch First Minister @JohnSwinney as he explains what we are doing to eradicate child poverty and provide whole family support. pic.twitter.com/F7zeJGhl8g
Announcing the investment at Peat Road Medical Practice, in Glasgow, Public Health Minister Jenni Minto said: “Tackling child poverty is the Scottish Government’s top priority and we want every child to have the best possible start in life.
“That’s why this package of funding is so important. It will enhance and expand three highly impactful programmes which will help families access support, fair work in the NHS, and reduce child poverty.
“This support will allow these three invaluable projects to continue to grow and help even more families across Scotland.”
Dr Elizabeth Bryden, GP at Peat Road Medical Centre, said: “We are delighted that the Scottish Government has extended funding for Whole Family Support through General Practice into 2026/27.
“The project helps to reduce inequalities linked to deprivation and enables children and families to reach their potential.
“Being involved in the Whole Family Support programme has made a significant difference to the families in our practice. Our Family Wellbeing Worker has used their knowledge and experience to connect families with community resources and patients place a great deal of trust in them.”
Tackling Child Poverty Delivery Plan 2026-2031 published
New support for parents to increase their incomes and reduce the burden of everyday costs, on top of existing work, will help to keep approximately 100,000 children out of poverty in 2026-27.
More than £111 million is being committed to updated plans to eradicate child poverty through Bringing Hope, Building Futures.
It builds on existing Scottish Government action which has already reduced relative child poverty rates in Scotland to the lowest levels in almost a decade – with rates nine percentage points lower than the UK in 2023-24.
Action includes:
Investing £61.5 million in the Tackling Child Poverty Fund to strengthen and introduce measures, including to expand childcare support for low-income parents, help employers offer progression opportunities, grow the Family Nurse Partnership to help up to 500 more young parents during pregnancy and into parenthood, and to expand Bookbug
A £20 million Whole Family Support Third Sector Delivery Fund for charities to help families in their communities
£30 million to boost incomes through work, create more training opportunities for parents by investing in the college sector, and to reduce transport costs for low-income parents travelling to work
£9 million to mitigate the UK Government’s freeze on Local Housing Allowance rates, which caps the amount of housing support a household can receive, to support up to 18,000 families
Social Justice Secretary Shirley-Anne Somerville said: “Eradicating child poverty is the Scottish Government’s driving mission – no child should live in poverty in a country as rich as Scotland.
“This plan builds on a great deal of progress and sets out a broad range of actions to help parents – by reducing the cost of living, helping increase incomes received through work and social security, and helping their children to thrive.
“I am proud that Scotland is the only part of the UK to have statutory targets to drive down child poverty, which were unanimously agreed by parliament.
“Our plan focusses on concrete action this year while providing the foundations on which any incoming administration can build and reflect its own policy priorities, working with industry, local authorities and charities, to give children in Scotland a future free from the scourge of poverty.”
£5.8 million to charities and partners to bolster whole family support across 2026-27
Seven projects delivering in communities will share £5.8 million of funding to drive transformation in whole family support.
First Minister John Swinney announced the funding during a speech on eradicating child poverty at Centrestage in Kilmarnock, East Ayrshire. He highlighted the need for charities and government to streamline collaborative efforts to eradicate child poverty, making it easier for people to access support.
The seven recipients of the grant will provide support for families, scale up efforts to tackle child poverty, and improve early child development.
This support is part of the £50 million Whole Family Wellbeing Funding allocation for 2026-27, building on the Scottish Government’s significant investment of £148 million in that Fund since 2022.
The Scottish Government’s Tackling Child Poverty Delivery Plan, which will set out further actions to reduce child poverty, will be published on Thursday.
First Minister John Swinney said: “Eradicating child poverty is my top priority and as a result of our bold action, child poverty rates are lower in Scotland than anywhere else in the UK.
“No child should have to worry about essentials such as food or a warm home because of circumstances beyond their control. While child poverty has reduced, even one young person growing up in poverty is one too many.
“My government is focused on building a support system that is seamless and tailored, that responds flexibly and quickly to people’s needs – and offers the right support at the right time.
“A total of £5.8 million in Whole Family Wellbeing funding will be directed to seven projects that exemplify the type of transformational support required for families across Scotland.
“I am proud that the experiences of children and families are at the heart of our forthcoming Tackling Child Poverty Delivery Plan, which will be set out in Parliament this Thursday. We are charting a path to work in harmony with charities and the third sector so that systems come together as one, providing a brighter future for children across the country.”
Dundee City Councillor and Convener of the Fair Work, Economic Growth & Infrastructure committee Steven Rome spoke about the Dundee Pathfinder Fairer Futures Partnership, which is among the recipients of this latest funding.
He said: “The Dundee Pathfinder is a collaborative effort to support families experiencing poverty. By drawing on local expertise, the Pathfinder has brought more than £2.4 million into households since October 2022.
“This is helping many people move into employment and training, improving the lives of entire families.”
Supporting parents and improving kids’ health and wellbeing
More children across Scotland will have access to free after school activities as part of the government’s national mission to tackle poverty.
The Scottish Government’s Extra Time Programme, delivered in partnership with the Scottish Football Association, supports local football clubs and trusts to provide free before school, after school and holiday activity clubs to primary school children from low income families.
Last year up to 5,000 children across 28 local authority areas were able to attend regular services which provide childcare options for their parents.
The 2026-27 Scottish Budget is increasing investment to expand delivery and reach of after school services, building on the success of the Extra Time programme, in areas where it is required for families most in need.
First Minister John Swinney met pupils benefiting from after school activities provided by Hibernian Community Foundation as part of the programme.
First Minister John Swinney said: “We know that families greatly value the services provided through the Extra Time Programme, which extend the school day, helping parents enter and sustain employment.
“The clubs are also hugely popular with children, enabling them to take part in football and other activities, learn new skills and access healthy food – helping improve their physical and mental wellbeing.
“The Scottish Government has supported the successful delivery of the programme through grassroots football clubs and trusts across the country, working closely with schools and community organisations.
“This is an excellent example of how we are improving outcomes for families and delivering on my priorities for Scotland – tackling poverty and growing our economy.”
Social Justice Secretary Shirley-Anne Somerville has said the draft Scottish Budget 2026-27 is a “landmark intervention” in the Scottish Government’s drive to tackle the root causes of child poverty and increase living standards.
Around £8 billion has been earmarked for the social justice portfolio, boosting support for vulnerable people and low-income families.
This includes plans to:
introduce a new premium element of the Scottish Child Payment in 2027- 2028, raising weekly payments for eligible parents of children under the age of one to £40 per child, benefitting around 12,000 children
create a new £50 million package to boost whole family support. This will further enhance existing support and will include help with transport, skills, and commits £20 million for third sector partners to deliver the support that people need in their communities
increase the Tackling Child Poverty Fund from £12.5 million to £61.5 million in 2026-27
invest £7.2 billion in social security, supporting disabled people, unpaid carers, those on low incomes and others, while also providing help with energy bills
Social Justice Secretary Shirley-Anne Somerville met parents in receipt of any of the Five Family Payments, including the Scottish Child Payment, on Thursday (15 January) at Pilton Youth and Children’s Project, and said: “Eradicating child poverty is this government’s driving mission – no child should have their prospects hindered by circumstances beyond their control.
“This Budget is a landmark intervention in our work to tackle the root causes of poverty and reduce the pressure on household finances – from increased support for Scotland’s newest parents, to new initiatives to help increase household incomes and ensure families receive the right support at the right time.
“With more than £330 million committed across three years to our Tackling Child Poverty Fund and to investment in Whole Family Support, we are laying the groundwork to drive continued progress in the year ahead, breaking the cycle of poverty in Scotland for good.”
Two-child limit mitigation funding for 2025-26 reinvested to tackle child poverty
More support will be available to families and households to help cover the cost of life’s essentials and to deal with emergencies.
First Minister John Swinney has confirmed that £10 million originally earmarked in 2025-26 to support the two-child limit mitigation payment in Scotland will be reallocated to tackling child poverty.
The majority of the funding will be split between charities and government programmes that provide emergency financial support, including:
£5.5 million additional funding for the Scottish Welfare Fund. The fund is administered by local authorities and provides people on low incomes with emergency grants if they are facing crisis, homelessness or other housing or caring challenges
An additional £0.55 million for Aberlour Children’s Charity and £1.5 million for Children First to provide extra emergency support to families in crisis
£1.5 million for the Corra Foundation to distribute additional emergency funds via local organisations
A further £1 million will support various strands of the Scottish Government’s national Child Poverty Delivery Plan 2022-2026, including parental employability schemes, funding to support women back into the workforce, additional investment into the King’s Trust’s NHS employability programmes, and targeted support for households experiencing homelessness.
Visiting children’s charity Children First, First Minister John Swinney said: “When I became First Minister, I said that I will pursue priorities that will make Scotland the best our country can be, and the most important priority that I have pursued in government has been that of eradicating child poverty.
“We have made progress. Scotland is the only part of the UK where relative child poverty rates fell in the last year. Our investment in a more dignified and generous social security system, funded childcare, free school meals and free bus travel for under-22s is putting more money in families’ pockets.
“However, as we start 2026, there are still far too many children in Scotland growing up hungry, or cold, and unable to reach their full potential. That is unacceptable.
“Today’s announcement will provide some immediate short-term relief for individuals and families facing the most challenging of circumstances. Our local authorities and charities have well-established means of getting support out quickly to people in need.
“Next week we will set out in more detail our intention to put tackling child poverty at the heart of the next Scottish Budget and I look forward to unveiling landmark interventions to drive this work forward.”
Chief Executive of Children First, Scotland’s national children’s charity, Mary Glasgow said: “These funds from the Scottish Government will allow Children First to offer life changing and immediate support to thousands of children as part of the national mission to eradicate child poverty.
“Through our national support line we will be able to reach more children and families to offer the financial, practical and emotional support they need to improve their circumstances and tackle the hardships they face in the short and longer term.
“Any family in Scotland in need of help can contact Children First’s friendly, specialist support line team 365 days a year by calling 08000 28 22 33 or starting a web chat at www.childrenfirst.org.uk/supportline.”
Chief Executive of Aberlour Justina Murray said: “Aberlour is delighted to receive this funding boost from the Scottish Government for our Urgent Assistance Fund.
“We know that families living in poverty particularly struggle with the cost of living during the winter months, with the post-Christmas period particularly challenging and often very bleak.
“This additional funding will be used to provide emergency cash grants via our UAF to families in desperate need for essentials like heating, food, warm clothing and bedding.
“This generous contribution by the Scottish Government will ensure that around 1,660 families living in poverty will have the basic essentials they need this winter such as food on the table, adequate clothing for their children and a warm home at night.”
The Scottish Welfare Fund is made up of two different grants (Crisis Grant and Community Care Grant) which can be applied for through your local authority and do not need to be paid back.
To apply for a grant from the Scottish Welfare Fund you must be 16 or older and on a low income or getting certain benefits.
New strategy to lift 550,000 children out of poverty by 2030 – delivering the largest reduction in child poverty since records began
Support for working families to stop children growing up in B&Bs, expanding childcare for families on UC and helping parents save up to £500 on baby formula
Families struggling with the cost of living to benefit from wider support announced at budget including £150 off energy bills, increasing the living wage by £900 a year and removal of two-child limit
Part of the Government’s plan to deliver more security, opportunity, and respect for every family across the UK
Around 550,000 children will be lifted out of poverty by 2030 – the biggest reduction in a single parliament since records began – as the Government launches its Child Poverty Strategy today (Friday 5 December).
Following the reversal of the two-child limit, the strategy tackles the root causes of poverty by cutting the cost of essentials, boosting family incomes, and improving local services so every child has the best start in life.
The strategy found that children growing up in poverty do less well in school, are more likely to be unemployed when older and earn less throughout their lifetimes. Failure to tackle this problem has been holding back the economy, as well as stifling children’s potential.
New interventions in the strategy include more accessible childcare for working parents on Universal Credit. Childcare costs are one of the biggest barriers for parents who want to work and those starting or returning to jobs can particularly struggle to cover upfront childcare fees before they receive their first payslip.
From next year, the rules will change to make it easier for new parents who receive Universal Credit to get back to work by extending eligibility for upfront childcare costs to those returning from parental leave. This will prevent new parents from facing a debt trap meaning more parents can get back to work and get on in work faster.
To support more parents with more than two children into work, families who receive Universal Credit will also be able to get support with childcare costs for all their children.
Children living in temporary accommodation are living in one of the deepest forms of poverty, this has a devastating impact, particularly on children. A stay in temporary accommodation increases a child’s experience of family disruption, missed schooling and damage to physical and mental health.
The strategy will also end the unlawful placement of families in Bed and Breakfasts beyond the six-week limit. To support this, the Government is investing £8 million in Emergency Accommodation Reduction Pilots in 20 local authorities that have the highest use of Bed and Breakfasts for homeless families – continuing the programme for the next three years.
Alongside this, the government will provide £950 million through the fourth and largest round of the Local Authority Housing Fund from April 2026 to deliver up to 5,000 high-quality homes for better temporary accommodation by 2030. Further details will be set out in the upcoming Homelessness Strategy.
A new legal duty will also be introduced for councils to notify schools, health visitors, and GPs when a child is placed in temporary accommodation, so no child is left without support. This enables health and education providers to deliver a more joined up approach to support children experiencing homelessness.
The UK Government will also work with the NHS to end the practice of mothers with newborns being discharged to B&Bs or other forms of unsuitable housing.
The government will also support families with the cost of essentials by helping families to buy more affordable infant formula. The cost of some infant formula brands has risen by 25% in two years, putting pressure on families who cannot or choose not to breastfeed.
The government will set clear guidance for retailers that – together with allowing families to use loyalty points, vouchers, and gift cards to purchase formula – could save parents up to £540 in a baby’s first year and remove unnecessary barriers for low-income families.
Taken together, the measures in the strategy will lift 550,000 children out of relative low income at the end of this Parliament, with 7.1 million children seeing household incomes rise, including 1.4 million in deep material poverty – the largest reduction in child poverty by any Government in a single Parliament.
Prime Minister Keir Starmer said: “Every child deserves the best possible start in life, with their future no longer determined by the circumstances of their birth. Yet too many children are growing up in poverty, held back from getting on in life, and too many families are struggling without the basics: a secure home, warm meals, and the support they need to make ends meet.
“I will not stand by and watch that happen, because the cost of doing nothing is too high for children, for families, and for Britain.
“This is a moral mission for me. It’s about fairness, opportunity, and unlocking potential. Our strategy isn’t just about reversing the failures of the past, it sets a new course for national renewal, with children’s life chances at its heart.”
Secretary of State for Work and Pensions, Pat McFadden said: “Tackling child poverty is an investment in working families and our country’s future.
“There is a direct link between children in poverty growing up to be adults not in work, education or training – we cannot afford to waste a generation’s potential and talents.
“Our strategy will deliver support where families need it most, giving every child a good start in life and giving them the opportunity to succeed.”
Education Secretary Bridget Phillipson said: “Child poverty is a stain on our country. I’ve seen the damage poverty does first hand, and bearing down on it sits at the very core of this government’s mission.
“This strategy, lifting over half a million children out of poverty, represents an historic moment for generations of families now and into the future.
“And whether it’s expanding free school meals, rolling out free breakfast clubs, or revitalising family services, we are determined to give every child the very best start in life.”
It comes as the Prime Minister visits a children centre in Wales today with the Welsh First Minister to meet families and children who are set to benefit from the interventions in the strategy.
It follows his visit to Glasgow yesterday where he spoke to Child Poverty Campaigners, MSPs, and other key partners to discuss the Government’s strategy to cut child poverty across the UK.
Stacey, from Changing Realities an organisation which has supported the development of the Child Poverty Strategy, discussed her experiences with the Prime Minister in Wales today. She said: “This strategy makes a good start to the essential work of addressing record levels of child poverty in this country.
“Lifting the two-child limit is a step on the road to investing in our children and our social security system, and can only be a good thing in lifting hundreds of thousands of children out of poverty.
“After championing the removal of the two-child limit over the last year, even though my own family won’t benefit it is great to finally feel listened to and knowing the difference this change will make.
“As a parent who knows first-hand the harm poverty causes, I stand ready and determined to continue the work required to ensure that no child in this country faces poverty. I call on all of us to do the same.”
Shortly after the election, the Prime Minister set up the Child Poverty Taskforce to bring together government and experts to explore how Government could use all its available levers to drive down child poverty.
This strategy is the first step on our road to ending child poverty and delivers on the commitment to reduce child poverty this parliament.
It comes as child poverty levels in the UK has reached a historic high. Today, 4.5 million children (around 31%) are living in relative poverty after housing costs, 900,000 more since 2010/11. Around 2.6 million children are growing up in households without enough food, and last year 1.1 million relied on food banks.
In England alone, more than 172,000 children are living in temporary accommodation and three quarters of children in poverty now come from working families.
Children growing up in poverty are more likely to not be in education, employment or training as an adult, earn less than their peers and less likely to achieve good GCSE results or do well at school.
Acting now will cost significantly less than the long-term consequences of poverty.
Tackling child poverty is not just a moral imperative – it is an investment in Britain’s future.
That’s why the Labour government is reversing the two-child limit in Universal Credit – a failed policy experiment that punished children and been one of the biggest drivers of hardship since its introduction in 2017.
The majority of families who will gain from the removal of the limit are in work. Around 300,000 children are in poverty directly because of this policy, equivalent to 100 children pushed into hardship every day. Without intervention, 150,000 more would have fallen into poverty by 2030.
Removing the two-child limit is the most cost-effective way to drive down child poverty rates – lifting 450,000 children out of poverty in the final year of this Parliament, rising to 550,000 alongside other measures such as the expansion of free school meals, help with energy bills and the government’s childcare offer.
Priya Edwards, senior research and policy manager at Save the Children UK, said: “Families will be better off under this plan with 7.1 million children seeing their household incomes boosted by the end of this Parliament.
“Scrapping the two-child limit to benefits, expanding free school meals, and increasing childcare support for families including for those returning to work after maternity leave are bold measures to improve childhoods’ – not the sticking plaster measures of the past.
“Ministers involved in creating the strategy listened extensively to children impacted by deep poverty over many months and we hope this way of working is used as a blueprint for creating policy in future that impacts young people.
“We welcome this expansive and historic plan, and we look forward to seeing the difference it can make to children’s lives in the years to come.”
Dame Clare Moriarty, Chief Executive of Citizens Advice, said: “here is no excuse for child poverty, which damages countless children’s lives every single day. This is the moment when we must draw a line in the sand – and as a country do everything in our power to turn the tide for children growing up in poverty and hardship.
“We applaud the publication of this Child Poverty Strategy. If fully delivered, the commitments made today have real potential to transform children’s lives. Our focus now is on ensuring these promises translate into action on the ground, helping to put food on tables, stability in households and hope back into children’s lives.
“We stand ready to work with government to help make that happen.”
The Joseph Rowntree Foundation said: “This morning, the government published its full Child Poverty Strategy, setting out plans to reduce hardship for children growing up in the UK by the end of the parliament.
“It’s a crucial commitment to delivering on one of their central manifesto promises.”
For the first time, this government will also target reductions in deep material poverty as part of the strategy, which goes beyond a family’s income, to understand children’s experience of poverty and measures the number of children in the UK who are going without essentials such as three meals a day or growing up in a damp-free home.
Two million children (14%) are currently in deep material poverty, lacking at least 4 of 13 essential items.
This is a UK-wide strategy, with ministerial roundtables in Scotland, Northern Ireland and Wales which were attended by ministers of the respective nations, and ministers and officials having visited all the regions of England to meet with key child poverty representatives and visit frontline delivery projects.
Respecting devolution settlements and complementing work that is already underway in nations and regions is central to this strategy. Each nation has its own distinct devolution settlement which sets out powers to tackle child poverty.
These powers vary across nations, with some levers being devolved to the governments of Scotland, Wales and Northern Ireland, while others remain reserved to the UK government.
Devolved governments also receive funding through the Barnett formula.
