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.
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, News Cover reports, citing UK government.
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 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.
