Child poverty
Child poverty is real. It disrupts childhoods and harms children's life chances. What can be done to change this?
About 3 in 10 of all children in the UK are growing up in low-income households. In some areas, more than half of children are growing up without the money they need to thrive.
But it doesn’t have to be this way. We can cut child poverty if we want to, and stop children from suffering. Families need direct financial support. They need a social security system they can rely on, not one that punishes them.
Every child deserves the essentials to thrive.
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.
11-year old Jess attends our Young Carers service in North Wales. When Sarah's health conditions forced her to give up work, it pushing them into financial difficulty.
“The support worker went above and beyond. She was there for emotional support and also making sure that we could pay our bills and eat. Without my wages covering the food and electricity bills, my biggest concern was heating the home and feeding us.”
Sarah
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. This is made worse by benefit rules which limits the amount families can access, particularly the two-child limit and the benefit cap.
Many parents faces barriers to work which make 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.
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.
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.
Our frontline staff have told us that child poverty levels are at the worst they can remember. We're calling on the new government to:
1. Increase the child element of Universal Credit by £15 a week.
Benefit levels are just too low. They often aren't enough to keep the fridge full, or the bailiffs at bay. Investment in Universal Credit is vital to ensure parents can at least meet their children's basic needs.
2. Remove the cruel benefit cap.
The cap sets the maximum amount of benefits a household can receive. In practice, it overwhelmingly affects families with children and predominantly single parent households (69%), who are more likely to face barriers to work.
3. End the unfair two-child limit.
This is a harmful rule which denies an additional child payment in Universal Credit - worth at least £3,235 a year, to a third or subsequent children. Introduced in 2017, it now affects 1.5 million children.
By depriving children of much needed income to meet their basic needs, it is one of the biggest drivers of rising child poverty. Scrapping it would lift 250,000 children out of poverty overnight.
4. Tackle barriers to work and opportunity.
71% of children in poverty are in working families. But low wages, insecure jobs and the high cost of childcare means that work doesn't always pay. And for single parents, disabled parents, or parents who are carers, there are many barriers to getting into and staying in work.
Explore the impact of child poverty in your local area
We help decision-makers think about and act on the needs of children and young people.
Our recent policy reports:
- Sick and tired: A look at the hardships and work prospects of sick and disabled parents relying on incapacity benefits
- Why are 300,000 families in full-time work still in poverty?
- Child poverty and barriers to work
- Going without: Almost one in five children growing up deprived of the basics
- A cost of children crisis?
- All worked out? The limits of work as a route out of poverty and hardship
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.
