Labour’s new child poverty strategy is drawing attention for its aim to support families with more than two children. The government hopes the changes will reduce child poverty significantly.
The decision to restore the child element of universal credit for larger families was announced in last week’s Budget. On Friday, the wider child poverty strategy was revealed, outlining additional measures. Education Secretary Bridget Phillipson will explain the plan in parliament next week. The government wants the public to notice these changes and engage in the discussion.
Some argue the two-child benefit limit, introduced in 2017 by George Osborne, remains popular. In theory, critics say, people should only have children they can afford. However, real-life circumstances often challenge this idea. Relationships break down, illness strikes, and employment changes leave families struggling. Notably, three-quarters of children in poverty live in working households.
The central point of the child poverty strategy is that children should not bear the consequences of their parents’ circumstances. Society should not punish a child for factors beyond their control.
The government expects around 450,000 children to rise above the poverty line due to the abolition of the two-child cap and other benefits, at a cost of £3.5 billion. Another 100,000 children may benefit from expanded free school meals, childcare support, and help with energy bills.
Former Home Secretary David Blunkett suggested lifting the limit only for third children and using funds to revive Sure Start centres. The government, however, is expanding child hubs similar to Sure Start, addressing part of this concern.
Some critics argue the government overstates its role in funding temporary accommodation for councils, noting this is a statutory responsibility.
Beyond welfare, experts say labour market policies should better support low-income families. Higher national insurance contributions for employers, minimum wage increases, and new employment regulations raise costs for hiring, particularly for young and low-paid workers.
Nevertheless, the child poverty strategy represents a meaningful step forward. By the end of the current parliament, hundreds of thousands of children and their families may experience improved living standards. Labour’s approach offers a rare positive policy change that could make a real difference.
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