Child poverty
No child should have to pay the price of poverty
Children in the UK are paying the price of poverty every day. Spending their childhoods feeling anxious, ashamed, isolated.
It’s relentless. And it doesn’t just affect their childhood. The harms caused by child poverty can last a lifetime.
4.3 million
3 in 10
9 children
But this level of hardship isn't inevitable. It doesn't have to be this way - and it’s time to act.
The government will soon publish their plan for child poverty. It can step up to invest in real change - or leave children to keep paying the price. We haven’t got long to share this message – will you take action today?
Will you join them? It takes just 2 minutes
What is poverty?
Poverty is a lack of money that often leaves families struggling to:
- Afford the essentials.
- Enjoy a decent standard of living.
- Share the simple family experiences that all children should get to enjoy.
Children are in poverty if they grow up in families with incomes below 60% of the average.
How is child poverty defined?
A child is in poverty if they are growing up in a family with an income below 60% of the average. This is known as relative poverty and it can be measured either before or after housing costs are considered.
At Action for Children, we define child poverty using relative poverty after housing costs are included. It is important to account for housing costs, as they vary considerably across the country. For example, a family in an area with very high rents, like London, is left with a lot less to budget with after their rent is paid than a family on the same income in another part of the country where rent is much cheaper.
I’m noticing that I’m trying to make money stretch further and it’s just not stretching. So it could make a huge difference, just having a little more money to account for.
Jasmine, mum campaigning with Action for Children
Our research has shown that families with children are more likely to face the worst consequences of the cost-of-living crisis. Many are struggling to meet rising costs of rent, bills and food - whether they're in work, or relying on social security.
Benefits and wages are often too low to meet family's needs - however well they plan, or budget. And its children who are paying the price.
Harsh policies like the Two-Child Limit and the Benefit Cap are making this crisis worse. Between 2013 and 2023, child poverty rose by 700,000. The Two-Child Limit and the Benefit Cap are driving this, pushing families deeper into hardship and making it harder to escape poverty.
Other causes of poverty
Many parents also face barriers to work which makes it difficult for them to increase their incomes. Single parents, disabled parents, or parents who care for disabled children often take a financial hit.
There are also inequalities. Children from Bangladeshi, Pakistani and Black African backgrounds are much more likely to be in poverty than other groups. Child poverty is highest in the West Midlands. The North East, North West, London, and Wales also have high rates.
Sign our Young Campaigners' open letter to join us
Poverty has a real impact on children's lives, both practical and emotional. They can go without essentials, miss out on opportunities, and carry the weight of money worries.
Every family is different, and no one has the same experience. But here are some of the realities children might face.
How poverty affects children
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1Education
Children living in poverty may do less well at school, have fewer job prospects, or feel fatigued and tired when learning.
-
2
Mental health
Children loving in poverty may worry about their parents, be scared about their future, or feel left out and embarrassed compared to piers.
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3
Family life
Families living in poverty may be unable to afford holidays and days out, not have enough food, or live in overcrowded homes.
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4
School and friends
Children living in poverty may be unable to have friends over, struggle to afford the correct school uniform, or miss out on school trips.
The government's Child Poverty Strategy must meet the scale of the urgent challenge facing families.
Children need it to deliver on the ambitious change that's been promised:
- Transformational change is possible, but requires ambitious thinking backed by short, medium, and long-term goals.
- Scrapping the caps is the single most-cost effective action government can take, but will not be enough by itself.
- We can't deliver sustained reductions in child poverty over time without above-inflation increases to child-related benefits.
- Improving benefit take-up and new social homes could be particularly powerful levers.
- Employment measures have a part to play, but are less targeted, less cost-effective and their impacts more modest and uncertain.
- The strategy cannot succeed without increased spending, but we should better recognise the long-term social and economic benefits of reducing poverty.
We’re calling for the government to:
1. Scrap the two-child limit and benefit cap
Scrapping these cruel policies, which limit the benefits that households can receive, would lift 600,000 children out of poverty by 2030.
2. Uprate the child elements of Universal Credit above inflation
To deliver sustained falls in child poverty, benefit levels for families with children would need to systematically rise over time to close the gap with average incomes.
3. Take action to improve the take-up of means-tested benefits
Billions of pounds in benefits go unclaimed each year due to the complexity of the system, a lack of awareness and negative stigma around claiming benefits. This needs to change.
Agree? Sign our Young Campaigners' open letter
We help decision-makers think about and act on the needs of children and young people.
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Looking for support?
We are here to support you. For information on the services and help we provide:
- call us on 0300 123 2112, or
- search to find out what services are local to you.
Financial Support:
Citizens Advice has information for those struggling with living costs. You can also use the Turn2Us Benefits Calculator to make sure you are receiving all the support you are entitled to. Alongside these you can also get in touch with your MP as their office might be able to offer some more guidance and access to local support. It’s also important your MP knows about the financial struggles of their constituents.
Parenting Advice:
At Action for Children, we know that financial strain can put pressure on all sorts of other areas of family life. Our Parent Talk service offers free advice for parents and carers of children aged 0-19 in the UK. Our parenting coaches have seen and solved it all – no topic is too big, small, or embarrassing. Whatever your background or experiences, we want to help. We know that everyone’s challenges are unique, and we aim to offer a welcoming and trusted place to get support. Read our articles for tips or talk to us on our chat service for more in-depth support.
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