Childcare at the centre of Government pledge to lift 550,000 children out of poverty by 2030
The Government has published its long-awaited child poverty strategy which the Prime Minister, Sir Keir Starmer has called the “moral mission” of his Government. It outlines a series of measures including childcare boosts, more free school lunches and a pilot scheme to get the most vulnerable families out of temporary accommodation.
Over the last decade levels of child poverty have spiralled across the UK. There are currently 4.5 million children (around 31 per cent) living in relative poverty after housing costs, which represents an increase of 900,000 since 2010/11. The sharpest increase in child poverty of any wealthy nation.
Along with the removal of the two-child benefit cap confirmed in the autumn Budget, the Government says the strategy will lift 550,000 children out of ‘relative low income by 2030’.
A key element is the commitment to making childcare more accessible for families on Universal Credit, something that campaigners in the early years sector have long been calling for. From next year, parents on Universal Credit returning from parental leave will be eligible for upfront childcare payments, removing a major barrier to work. Families with more than two children will also receive childcare support for all their children.
Under the current system parents claiming Universal Credit can get help with upfront childcare costs through the Flexible Support Fund or a budgeting advance if they are starting work or increasing hours. However, according to the Child Poverty Action Group, the budgeting advance is discretionary and for claimants to be eligible they must be earning below a certain level.
The Government says that improving access to childcare will prevent new parents from ‘facing a debt trap’ with more being able to return to work. It is also crucial because attending high quality early education and childcare is a proven factor in boosting child development and breaking intergenerational cycles of poverty.
Sarah Ronan, Executive Director of the Early Education and Childcare Coalition, said, “We are delighted to see the Government recognise that access to affordable childcare is essential in tackling the scourge of child poverty, and we welcome today’s landmark strategy. The Government has taken an important first step by putting childcare at the heart of its approach and recognising that this is central to reducing poverty in both the short and longer term.’’
Other measures include help with ‘the cost of essentials’, and particularly the price of formula milk. The Government says it will set clear guidance for retailers on infant formula, the cost of which, for some brands, has risen by 25 per cent in two years.
The guidance, including flexibility around using loyalty points, vouchers and gift cards is expected to save parents up to £540 in a baby’s first year.
The strategy also outlines a desire to tackle the ‘devastating’ effects of B&Bs and temporary accommodation. There will be an end to the unlawful placement of families in Bed and Breakfasts beyond the six-week limit by investing £8 million in Emergency Accommodation Reduction Pilots across 20 local authorities.
In addition, from April 2026, up to 5,000 ‘high-quality’ homes for better temporary accommodation will be delivered and there will also be a new legal duty on councils to notify schools, health visitors and GPs when a child is placed in temporary accommodation, so that they get the support that they need.
As part of the Strategy, for the first time, the Government will also target reductions in deep poverty. Currently 2 million children (14 per cent) are considered to be in deep material poverty, lacking at least four of 13 essential items such as three meals a day.
Charities including Save the Children, Citizens Advice and The Children’s Society broadly welcomed the plan but stressed that it must be delivered effectively.
The Government “has put its money where its mouth is on the manifesto commitment to reducing child poverty”, said Katie Schmuecker of the Joseph Rowntree Foundation, further saying that the removal of the two-child limit was “the single most effective policy decision” ministers could have made in tackling child poverty.
Lynn Perry, the Chief Executive of Barnardo’s, said she welcomed the plan, adding, “Whist this is a landmark moment, we must also remember that even with these important changes, close to four million children are still set to be living in poverty in 2029. We must work together as a society to change this.”
Alison Garnham, the Chief Executive of the Child Poverty Action Group, said the changes were invaluable but “only the first step”, adding: “There is much to do, and we must now build on this momentum to achieve more tangible change for children.”
Further reading:
Our Children, Our Future. Tackling Child Poverty. H M Government 2025.
What is life really like on a low income in the UK?