Tag: Poverty

Edinburgh Poverty Commission: ‘We cannot say things have got better’

‘EDINBURGH IS NOT ON TRACK TO SOLVE POVERTY’

The Edinburgh Poverty Commission has published a report and action plan for tackling poverty over the next five years.

Five years on from their original report, they have joined forces with the End Poverty Edinburgh citizens’ group, to evaluate what has changed in the city since 2020, what has worked best to prevent people being trapped in a cycle of poverty, and to set out a practical pathway for the next five years.

Unveiled at a conference in the Southside yesterday (Friday 31 October), A Just Capital: 2025 Call to Action acknowledges positive progress has been made to support residents across the city – but reveals poverty rates remain largely unchanged and that the next five years need to be a period of accelerated delivery.

Responding to the findings, City of Edinburgh Council Leader Jane Meagher said: “Since the Commission’s initial report, we’ve declared a housing emergency and experienced an unprecedented cost of living crisis. With food prices now 57% higher and electricity costs up 48%, it has become even more difficult to tackle poverty, but we are making progress.

“The Commission’s calls to action in 2020 have enabled us to focus as a city and to work better together. Our collective efforts have prevented thousands more people from entering poverty and homelessness and have helped many more into secure work. This is alongside putting millions of pounds worth of previously unclaimed benefits into people’s pockets and helping to establish a dedicated poverty prevention fund.

“And yet, poverty rates remain unchanged, and the figures are stark. Nearly a quarter of a million children are experiencing poverty in Scotland, and more than 80,000 Edinburgh residents are struggling to make ends meet, often being forced to choose between heating or eating.

“We cannot address this alone and I welcome the Commission’s latest report, which calls on all levels of government to respond.

“Over the next five years we will focus our efforts on prevention – establishing new neighbourhood prevention partnerships meaning people can get all the help they need in one place. We also need to increase the affordable and social rented housing Edinburgh so desperately needs. We’re determined to take every local action possible to make life fairer for everyone who calls Edinburgh home.

Linda Craik, Co-Chair of the Edinburgh Poverty Commission said: “During this review we’ve heard some quite distressing stories of the impacts and effects of poverty on families and we’ve heard the frustrations of those agencies and individuals who are trying to help them. But we’ve also seen some fantastic examples of collaborative working which is starting to make an impact on the poverty landscape.

“It can be so easy to look at the poverty, housing, health, employment statistics and feel deflated and disheartened, but we, as a city, made a commitment and we are moving forward. 

“Just keep listening to the people you are trying to help – they after all just might have some of the answers and the simple solutions that sometimes aren’t as obvious as you’d think they might be.

“End Poverty Edinburgh are such people and we’re more than happy to work with anyone who wants to be part of movement to eradicate poverty in our city.”

Jim McCormick, Co-Chair of the Edinburgh Poverty Commission, said: “We are five years on since the Edinburgh Poverty Commission set out calls to action for the city in A Just Capital. Published between two Covid lockdowns, Commission members could not have anticipated the long shadow of the pandemic on people’s lives, or the impact of the cost-of-living crisis that followed.

“We cannot say things have got better city-wide. Some things have become tougher. Overall, Edinburgh is not on track to solve poverty. Poverty levels appear to have flat-lined.

“At the same time, it is also true that we have seen signs of positive change. Powerful collaborative work is being done at neighbourhood level, while early but decisive steps are being taken to prevent homelessness.

“That this review has taken place at all is a mark of the city’s commitment. For things to improve, this needs to go further. We have found enough determination in the city to believe that the original calls to action can still be achieved by 2030.

“Longer-term and flexible funding, true collaboration between sectors and new forms of accountability are required for these examples to achieve their real impact.

“This is a time for renewed commitment from those we elect at local, Scottish and UK levels, via investment in social housing, education, fair work, social security, equity in education, health and social care and a just transition. There is no sustainable route to ending poverty otherwise.”

Edinburgh Poverty Commission 2025 Calls to Action (1)Download

Poverty Alliance: This is just the start

SCOTLAND DEMANDS BETTER

Change for the better happens when people stand together and demand it. That is why thousands of people took to the streets of Edinburgh yesterday to say with one voice that we demand better – better than poverty, better than inequality and better than divisive, hateful narratives that seek to pit our communities against one another.

Trade unions, faith groups, community organisations and charities stood shoulder to shoulder with people from across Scotland to demand fair work, strong public services and dignified social security.

It was a showcase to our political decision makers at all levels that we are tired of waiting for change on the injustice of poverty, and we are standing together to demand action.

This isn’t the end. It is the start of a movement, together in hope and solidarity, for a better Scotland for all of us.

THE POVERTY ALLIANCE

Edinburgh Poverty Commission: A Just Capital?

Edinburgh Poverty Commission – A Just Capital: 2025 Call to Action

Join us for the official launch of the Edinburgh Poverty Commission’s Interim Report!

This exciting event will take place at the Nicolson Square Venues, where we will share our findings and calls to action to tackle poverty in our city over the next 5 years.

You’ll also have the opportunity to meet the commission members and citizens who have shaped this work, and to help us build on what is already a vibrant movement to end poverty in Edinburgh.

We look forward to seeing you then!

Jim McCormick and Linda Craik – Co-chairs, Edinburgh Poverty Commission

BACKGROUND:

In 2020 we published our landmark report ‘A Just Capital’ setting a ten year mission, and clear calls to action for the steps needed to eradicate poverty in Scotland’s capital city.

Five years into that mission we have reconvened, in a newly invigorated collaboration with the End Poverty Edinburgh citizen’s group, to comment on what has changed in this city since the publication of our first report, what has worked best for people who live in poverty, and to set out a practical pathway for the next five years.

Doors open 9.30am for 10:00am start
Event ends 12:00 noon.

Book your place here.

You can sign up to the launch event on Friday 31 October here:

https://edinburghpovertycommission.org.uk/2025/10/21/edinburgh-poverty-commissions-interim-report/

Tax Justice Scotland: A fair wealth tax could raise almost half a billion pounds a year from Scotland’s 10 richest families alone

New report reinforces case for stronger wealth taxes as a key building block of wider package of UK and Scottish fair tax reforms

A new report for Tax Justice Scotland has exposed Scotland’s staggering wealth gap with just five families holding more wealth (£19.3bn) than a quarter of Scotland’s population with the least wealth combined (£18.9bn).

The news comes as campaigners, frontline delivery organisations, academics, trade unions and others gather in Edinburgh for a major tax justice conference to explore the urgent need for a package of fair improvements to the tax systems at Scotland, UK and global levels.

The report, Taxing Wealth for a Fairer and Greener Scotland, produced by the Scottish Trade Union Congress (STUC) on behalf of the campaign, makes clear that fairer taxes on wealth at UK and Scotland levels must be at the heart of this package of reforms to invest in and drive progress towards a fairer, greener and more prosperous future.

Tax Justice Scotland says improved wealth taxation is only one part of a fairer tax system and is today also challenging all political parties in Scotland to outline detailed proposals for using the powers of the Scottish Parliament to improve devolved and local tax systems. 

The STUC analysis highlights the extreme end of wealth inequality after official data showed the wealthiest 2% of Scottish households have more wealth than the poorest 50% combined.

The report shows that the fortunes of Scotland’s very wealthiest people are surging far faster than people’s pay packets. Between 2024 and 2025, the combined wealth of Scotland’s ten richest families shot up by almost 8%, outstripping average earnings growth (5.9%).

Incredibly, the five richest families in Scotland are estimated to have more wealth (£19.3bn) than the Scottish Government collected in Income Tax (£19bn) last year. 

For illustrative purposes, the STUC analysis shows that a modest annual wealth tax of just 2% on all those with assets of more than £10 million could raise nearly half a billion pounds (£492 million) from Scotland’s 10 richest families alone, enough to pay for 12,000 new nurses, or 11,000 new teachers, or to double the Scottish Child Payment and lift more than 30,000 children out of poverty.

Given such a wealth tax would apply to all those with assets of more than £10 million in Scotland, it would raise even more.

Roz Foyer, General Secretary of the STUC, said on behalf of Tax Justice Scotland: “This research lays bare the shocking concentration of wealth in Scotland. While families across the country are struggling to pay their bills, a handful of the super-rich are lining their pockets with more and more money.

“It doesn’t have to be this way: fairly taxing this eye-watering wealth could, according to STUC research, mean more 12,000 new nurses in hospitals, 11,000 more teachers in classrooms or to double the Scottish Child Payment and lift more than 30,000 children out of poverty

“Politicians across the UK should be in no doubt that it’s their dithering and delay that is deepening the crisis within our communities and public services. The powers to make a radical change to our tax system are at their disposal. The excuses must end. Scotland can work for everyone, not just the richest few. It’s time that work was started without equivocation.”

Tax Justice Scotland believes a series of tax reforms are needed to deliver the investment Scotland needs, while incentivising positive behaviours, to tackle poverty, strengthen public services, cut emissions and support fair work, while reducing the many forms of inequality that persist, including gender and economic inequality.

The campaign says this package of reform is essential to building a fairer, greener and more prosperous future for everyone in Scotland. While, over time, raising enough revenue is likely to require broad-based tax increases – fairer wealth taxation is vital.

As the Chancellor prepares her autumn Budget, campaigners point to growing momentum behind fairer taxes, with 68% of people in Scotland thinking the very richest should pay more. Over three-quarters (79%) of people in Scotland back a UK-wide wealth tax on the very richest people. 

Previous analysis has shown that the measure, alongside a series of other reforms to improve existing UK-level taxes on wealth, like increasing Capital Gains Tax and applying National Insurance to investment income, could raise up to £60 billion a year across the UK. 

A UK-wide wealth tax, if introduced, could help boost the Scottish Budget. But the STUC’s analysis shows that if the UK Government fails to act, the Scottish Parliament could use its own tax powers, with HMRC support, to introduce a locally-administered wealth tax.

The findings come against a backdrop of growing fiscal pressure: the Scottish Fiscal Commission has warned of a £4.7 billion shortfall in the Scottish Budget by the end of the decade, alongside mounting longer-term challenges. The Commission is urging all parties to work together before and after the Scottish election to address these challenges.

While making the case for improved taxation on all forms of wealth, Tax Justice Scotland says improving tax on property wealth in Scotland is particularly essential. Campaigners say the outdated and unfair Council Tax, still based on property values from 1991, must finally be replaced with a reformed property tax that reflects today’s housing wealth. 

Property wealth has surged by almost £100 billion in just ten years, yet the Council Tax system remains frozen in time, letting those in the most expensive homes pay far less than they should, while many others are left paying over the odds.

Tax Justice Scotland say replacing Council Tax, alongside wider reforms to better tax the wealthiest and to build upon modest but progressive changes to Income Tax in Scotland, would collectively make sure those with the broadest shoulders contribute a fairer share. 

Campaigners emphasise that while tax isn’t a silver bullet, it can play a much bigger role in building the Scotland we want to see.

Jamie Livingstone, Head of Oxfam Scotland, a member of Tax Justice Scotland, said: “Our tax system can do so much more to help build the country the people of Scotland want, but, right now, it’s stacked in favour of the wealthy.

“It’s time to fix the system; and that must include better taxing wealth right across the UK and, in Scotland, finally replacing the outdated Council Tax.

“With the Scottish election fast approaching, all political parties have a clear choice: defend a broken system that protects the richest while short-changing critical priorities or back a fairer one that delivers a fairer, greener and more prosperous country for all of us.”

STUC-Taxing-Wealth-for-a-Fairer-and-Greener-ScotlandDownload

Read the report Taxing Wealth for a Fairer and Greener Scotland here: 

https://bit.ly/TaxingWealth 

SCOTLAND DEMANDS BETTER on TAX:

Scotland-Demands-Better-on-TaxDownload

Challenging poverty with ‘family friendly policies’

FM commits to putting more money in Scots’ pockets and urges UK Government to act

Challenge Poverty Week – The Poverty Alliance 

First Minister John Swinney has said the Scottish Government is committed to putting “more money in people’s pockets” through policies that alleviate financial pressures on families as Challenge Poverty Week begins.

The First Minister said the Scottish Government’s cost of living guarantee, which includes free bus travel for 2.3 million people, more than £6,000 in early learning and childcare support for each eligible child, free prescriptions and other measures, is delivering real savings for families across the country.  

The guarantee sits alongside wider support, such as the Five Family Payments, including the Scottish Child Payment, which are reducing poverty. 

The proportion of Scottish children living in absolute poverty has reached its lowest level in 30 years and the latest figures (for 2023-24) show that the rates of both relative and absolute child poverty in Scotland were 9 percentage points lower than the UK average.   

Scottish Government policies are estimated to keep 70,000 children out of relative poverty in 2025-26. This impact is projected to grow over time to reach 100,000 children by 2028-29 – in part owing to plans to mitigate the UK Government’s two-child limit, which should keep 20,000 children out of poverty next year.  

Mr Swinney said: “Tackling child poverty is this government’s defining mission and our determination is backed up by a commitment to put more money in people’s pockets and deliver real savings to support families.   

“There are fewer children in poverty in Scotland than the rest of the UK because we have made bold policy choices backed by an unwavering resolve. 

“The Scottish Child Payment was benefitting around 322,000 children and their families as of the end of June. Our free school meals programme is providing nutritious meals to more than 230,000 primary school pupils. We have cut costs for commuters by scrapping peak rail fares. Some 2.3 million people travel free on buses. And we’re mitigating the two-child limit early next year.  

“The UK Government, if it is serious about tackling poverty, must match our ambition and, at the very least, fully scrap the two-child limit so that a generation of children don’t have their opportunities limited by inaction. 

“But scrapping the two-child limit should also be done alongside the removal of the benefit cap. It is unconscionable to me that the UK Government could fail to address this – it must scrap both punitive policies.  

“If it does, and it matches the Scottish Child Payment and introduces an Essentials Guarantee, our modelling estimates that the UK Government could reduce relative child poverty in Scotland by 100,000 children next year.   

“We have made a difference through bold, game-changing policies. The blueprint is there. It is time for the UK Government to act.”

Challenge Poverty Week – The Poverty Alliance 

The cost-of-living guarantee: 

  • Lower income tax than in England for the majority of workers 
  • Continuation of free prescriptions and free eye appointments 
  • Free bus travel for 2.3 million people  
  • Scottish undergraduate students will continue to pay no tuition fees 
  • Funded childcare hours, which would otherwise cost families more than £6,000 a year per eligible child. 
  • Free school meals, which save the average family who take up the offer £450 per child per year, will be expanded, and more breakfast clubs introduced. 
  • Delivering Pension Age Winter Heating Payments for eligible Scottish pensioners in 2025-26
  • Scrapping peak rail fares 

The Five Family Payments include: 

  • The Scottish Child Payment, which is a weekly payment of £27.15 for each eligible child under 16 years of age. 
  • The Best Start Grant includes three payments designed to support families at different stages, including during pregnancy and when a child starts school, including: 
  • the Pregnancy and Baby Payment, which is a payment of £767.50 on the birth of the first child and £383.75 on the birth of any subsequent children 
  • the Early Learning Payment, which is a payment of £319.80 per child for children between 2 and 3.5 years old to support child development 
  • the School Age Payment, which is a payment of £319.80 per child to help with the costs of preparing for school 
  • Best Start Foods, which is a prepaid card to buy healthy foods for eligible pregnant women and families with children under the age of three, with a minimum payment of £5.40 a week. 

The Child Poverty Action Group estimates that the two-child limit on benefits is pulling 109 more children into poverty every day.

Latest figures on child poverty rates in Scotland compared to rest of UK

Child poverty summary showing the proportion of Scottish children living in absolute poverty has reached its lowest level in 30 years

Households with children in the poorest 10% of households are also estimated to be £2,600 a year better off in 2025-26. 

Evaluating efforts to tackle poverty

New report highlights the impacts of Scottish policies

Scottish benefits are easing the cost-of-living burden for families according to a new evaluation.

The Scottish Centre for Social Research surveyed people in receipt of any of the Five Family Payments, a group of benefits designed to tackle poverty and to improve household finances.

Findings show the payments have a positive impact on recipients’ overall finances and have helped to reduce material deprivation and food insecurity for low-income families. The majority of Scottish Child Payment and Best Start Foods recipients agreed the payments meant they did not need foodbanks.

Feedback also shows the majority of Best Start Foods recipients, who receive a pre-paid card to purchase healthy food, reported that the card enabled their families to have healthy meals more frequently. 

Other impacts include a reduction to household debt and borrowing and more children being able to undertake extra-curricular activities, like sport, music or drama.

Recipients also commented that the automatic payment system reduces worry and stress.

Social Justice Secretary Shirley-Anne Somerville met some impacted families at Brunstane Primary School in Edinburgh.

Ms Somerville said: “We want every child to have the best start in life, but we recognise that the cost of living continues to have a negative impact on families across the country.

“It is a moral imperative to offer the best support we can, and I’m pleased that this work found an array of positive, meaningful impacts.

“But we are not letting up. We know there is more to do, which is why, as an example, we are launching the new Two Child Limit Payment in March, which will benefit the families of 43,000 children next year.

“And in the face of challenging economic headwinds and cuts to the UK welfare system, I want to reassure families that our support will continue. No child, nor family, will be left behind by the Scottish Government.”

One parent, Emma Hunter from Magdalene, said: “We are so grateful for the support we received with the healthy start vouchers, school uniforms and child payment.

“It has been such a huge help  in easing the financial burden of starting a family and it has made a real difference to our lives.”

Evaluation report

Edinburgh & Lothians Greenspace Trust speak out on impact of EIJB cuts

Edinburgh & Lothians Greenspace Trust, working alongside our partners in the Thrive Collective, is deeply disappointed by the recent decision of the Edinburgh Integrated Joint Board (EIJB) to end the Thrive contract for Physical Activities and Greenspaces from the end of November.

Through Thrive, we and our partners have worked in close collaboration with communities, health services, and local organisations to provide inclusive opportunities that improve physical and mental wellbeing.

We are proud of the collective impact that this work has had for people across Edinburgh, particularly those experiencing health inequalities.

This follows the earlier decision to withdraw grant funding for our Healthy Lifestyles work in South Edinburgh. Together, these cuts represent a significant reduction in support for programmes that enable communities across the city to access the health and wellbeing benefits of nature, physical activity, and local greenspaces.

The decision will have a real impact on the 1250 participants who rely on these programmes to support their physical health, mental wellbeing, and sense of social connection. Many of the people we work with face health inequalities and barriers to accessing mainstream services, and these activities have provided an essential lifeline.

Charlie Cumming, ELGT Chief Executive, confirmed the loss of this funding will directly affect our capacity to deliver dedicated programmes that improve health through engagement with local greenspaces.

It will also reduce the resources that are community-based, accessible, and effective alternatives to clinical treatment—helping people recover and build resilience outside of primary care settings.

Despite this setback, ELGT remain committed to championing greenspaces and active lives as vital to Edinburgh’s health and wellbeing.

We will continue to explore new ways of sustaining this essential work and will seek to secure funding that ensures these opportunities remain accessible to the communities who need them most.

We would like to sincerely thank all participants, volunteers, and partner organisations who have engaged with us.

Your commitment and enthusiasm highlight just how much this work matters and the difference it makes across the city.

EDINBURGH & LOTHIANS GREENSPACE TRUST

Stark statistics highlight wealth gap

New statistics show average wealth remained stable, while wealth inequality remained high.

According to the latest data which covers the period during the pandemic, a typical household in Scotland had £239,500 in total wealth, similar to previous years.

A typical household in the wealthiest 10% of households had £1.3 million in total wealth, whereas a typical household in the least wealthy 10% of households had £7,600.

The least wealthy households rarely own property or have any private pension savings. Their wealth is mainly made up of the value of their possessions such as cars, furniture and clothing.

Wealth inequality is more severe than income inequality: the 2% of households with the highest incomes had 10% of all income, while the wealthiest 2% of households had 15% of all wealth.

Households that tend to be wealthier than others are higher income households, pensioner couples, and home owners. In contrast, households with below average wealth tend to be low income households, lone-parent and single working-age adult households, and those in rented housing.

A fifth of households had insufficient savings to keep them above the poverty line for a month should they lose their income. Three per cent of households were in unmanageable debt. Just over a third of households did not own any property, and a third of adults had no private pension savings.

The released figures were produced in accordance with professional standards set out in the Code of Practice for Official Statistics.

The full statistical publication: Wealth in Scotland 2006-2022

Committee concerns that new UC health claimants could face poverty

A new report from the Work and Pensions Committee has raised concerns that planned cuts to the health component of Universal Credit (UC health) will push disabled people into poverty despite the above inflation rise in the UC standard allowance. 

In its Pathways to Work report, the Committee repeated calls to delay planned cuts in UC health reform until the full impact of the changes are better understood.

The Committee wrote to the Secretary of State in May calling for a pause of the planned reforms to UC health and Personal Independence Payments (PIP) and called for PIP policy to be co-produced with disabled people. 

The Government subsequently dropped all the PIP proposals and agreed to co-produce a new PIP assessment process with disabled people and their organisations in a review led by Sir Stephen Timms.

However, under the planned reforms to UC health, from April 2026 although all existing claimants and new claimants with severe or terminal conditions will be protected, other claimants assessed as having limited capability for work and work-related activity will see their awards halved from £423.27 to £217.26. 

This is part of the Government’s drive to get more people off welfare and into work, as described in their Pathways to Work Green Paper.

Although the intent to safeguard these people was welcomed, MPs on the Committee raised concerns that some conditions, particularly serious mental health conditions, might not be included under the severe condition criteria; this also applies to people with fluctuating conditions.

The Committee also asked the Secretary of State why an assessment of safeguarding risks had not been conducted before the Green Paper was published. 

Committee Chair Debbie Abrahams said: “We welcome the concessions that the Government made to the UC and PIP Bill (now the UC Bill); but there are still issues with these welfare reforms not least with the cut in financial support that newly sick and disabled people will receive.

“The Government’s own analysis published in March indicates that from next April approximately 50,000 people who develop a health condition or become disabled – and those who live with them – will enter poverty by 2030 as a result of the reduction in support of the UC health premium.

“We recommend delaying the cuts to the UC-health premium, especially given that other policies that such as additional NHS capacity, or employment support, or changes in the labour market to support people to stay in work, have yet to materialise.

“We agree in a reformed and sustainable welfare system, but we must ensure that the wellbeing of those who come into contact with it is protected.

“The lesson learned from last month should be that the impact of policy changes to health-related benefits must be assessed prior to policy changes being implemented to avoid potential risks to claimants.”

World’s largest fund of its kind to support vulnerable families

  • Chancellor launches new £500m Fund to break down barriers to opportunity for up to 200,000 vulnerable children and young people and deliver Plan for Change.
  • World’s largest fund of its kind will boost pupil achievement and could fund programmes to reduce reoffending or provide specialist workers for children struggling with exclusion, mental health or crime.
  • Better Futures Fund will run for ten years, with plans to raise another £500 million from local government, social investors, and philanthropists on top of government’s funding
  • The launch is backed today by groups including Save the Children UK, The King’s Trust and Oxford University’s Blavatnik School of Government.

Struggling and vulnerable families and children are to be given a better start in life after a new government fund was announced today (Monday 14 July), which will provide them with the support and funding needed to access a better education, a safe home, and the caring supportive environment they need to flourish.

The Better Futures Fund will support up to 200,000 children and their families over the next ten years by bringing together government, local communities, charities, social enterprises, investors, and philanthropists to work together to give children a brighter future.

It could fund providing support in schools to improve attendance, behaviour and overall achievement of pupils, intervening to free children from a life of crime, and offering employment support to secure their futures.

The fund, which is the largest of its kind in the world, will be launched by the Chancellor of the Exchequer Rachel Reeves at a visit to a school today in Wigan, hosted by the charity AllChild.

It could fund providing support in schools to improve attendance and behaviour, intervening to free children from a life of crime, and offering employment support to secure their futures.

By investing in early support to tackle challenges like school absence, addiction and re-offending, the fund will help give children the stability and opportunity they need to thrive – delivering on a key part of the Prime Minister’s Plan for Change to give every child the best start in life.

It comes ahead of the government hosting the first Civil Society Summit this week, where the government will set out a comprehensive plan on how this government will partner with experts from outside the traditional corridors of power to create solutions that work for real people – all through the principles of fairness, collaboration and trust.

Chancellor of the Exchequer Rachel Reeves said: “I got into politics to help children facing the toughest challenges. This fund will give hundreds of thousands of children, young people and their families a better chance. 

“For too long, these children have been overlooked. Our Plan for Change will break down barriers to opportunity and give them the best start in life.”

Culture Secretary Lisa Nandy said: “This groundbreaking Better Futures Fund represents a major step in partnering with the impact economy, which has long played an important role in strengthening communities and driving inclusive growth.

“As part of the Plan for Change, we’re bringing together government, local authorities, charities, social enterprises and philanthropists to create a powerful alliance that will transform the lives of vulnerable children and young people.

“We owe them the best start in life. Together we will break down barriers to opportunity, ensuring those who need support most aren’t left behind and have the chance to reach their potential.”

Social Outcomes Partnerships have already been used with success across the UK, with over 180 commissioners using the model across the country. The Greater Manchester Better Outcomes Partnership (GMBOP), for example, works with young adults in the Greater Manchester area who are at risk of homelessness.

AllChild’s projects have already halved persistent school absences, and 80% of children have improved emotional wellbeing. Other programmes like the Skill Mill offer paid work experience and qualifications, reducing reconviction rates from 63% typically to 8% and three quarters of those in the programme progress to further employment, education or training.

This fund is a big step in the government’s work with the impact economy – unlocking extra resources from philanthropy, social investors and businesses to tackle urgent social challenges. Today’s announcement comes as the government’s Child Poverty Strategy is to be published in autumn to ensure it delivers fully funded measures that tackle the structural and root causes of child poverty across the UK.

The launch is backed today by groups including Save the Children UK, The King’s Trust and Oxford University’s Blavatnik School of Government.

Today’s announcement is informed by consultation with the Social Impact Investment Advisory Group and other representatives from civil society, purpose-driven business, and local government.

Over the coming months the UK Government will build on this and develop a strategic approach to working with the impact economy, who have long played an important role across the UK economy in unlocking innovation, driving inclusive growth and strengthening community resilience.

Chief Secretary to the Treasury Darren Jones said: “Partnering with impact capital to tackle child poverty was a personal priority for me coming into government – which is why I set up the Social Impact Investment Advisory Group to advise on the development of this brilliant fund, which we’ve been delighted to support as a government.

“I’d like to thank Dame Elizabeth Corley for chairing the group and all the members for their hard work.”

Louisa Mitchell MBE, Chief Executive Officer, AllChild said: “I warmly welcome the government’s Better Futures Fund as a pivotal step toward transforming how we support children and families across the country.

“It’s vital that children engage with the right support and opportunities, at the right time, in the right way. Holistic support that is rooted in each child’s local community, builds on their strengths, and places trust and relationships at the heart of delivery.

“I hope this fund will be a catalyst for a new way of working – one which prioritises prevention, shared accountability for locally identified outcomes, and genuine cross-sector partnerships. This is how we can ensure every child no matter where they live has the support and opportunities they need to flourish.”

Richard Rigby, Head of UK Government Affairs, The King’s Trust said: “At The King’s Trust, we know that timely support can change the course of a young person’s life. Potential is everywhere but opportunity is not.

“The Better Futures Fund is an investment in the potential of young people who are too often left behind. We welcome this commitment to early intervention and collaboration with organisations like ours to tackle inequalities and help young people build brighter, more secure futures.

“By getting behind young people, we can all help to make the UK a healthier, wealthier, more positive and cohesive place.” 

Further details on the fund will be set out in due course. It will be delivered by the Department for Culture, Media and Sport.