Brighter future for over half a million children as government turns tide on child poverty
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450,000 children lifted out of poverty in landmark move to scrap
two-child limit, rising to over half a million alongside other
measures - the largest expected reduction in child poverty over a
Parliament Free breakfast clubs and extended Free School Meals to
transform life chances for 1 in 3 children experiencing poverty in
every classroom Record investment in early years begins to deliver
best start as latest data shows green shoots in government plan to
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Nearly half a million more children will be lifted from poverty following the government's decision to scrap the two-child limit in this year's Budget - pulling 450,000 children out of poverty and further bolstering the government's mission to break down barriers to opportunity across the country. Taken alongside other measures announced this year, around 550,000 children will be lifted out of poverty by this government, the largest expected reduction in child poverty over a Parliament since records began. The two-child limit has - described by the PM as a “failed social experiment” – has been one of the biggest drivers of hardship since its introduction in 2017. Around 300,000 children are in poverty directly because of this policy, equivalent to 109 children pushed into hardship every day. Without intervention, 150,000 more would have fallen into poverty. Children growing up in poverty are far more likely to miss out on the skills and opportunities that lead to secure, well-paid jobs—holding back both their future prospects and economic growth. Tackling child poverty is an investment in Britain's future: building a stronger economy, unlocking opportunity, and reducing long-term dependency on welfare. The Chancellor has also confirmed plans to remove the vile ‘rape clause' policy from the statute book, so women no longer need to suffer the indignity of proving if their child has been conceived non-consensually to access support. Removing the cap is the most cost-effective way to reduce child poverty during this Parliament, and scrapping the limit lifts more children out of poverty than any other single policy. The cost of removing the two-child limit will pay for itself many times over by reducing long-term costs of poverty, including poorer health, lower educational attainment, and wasted potential. It will also make a real difference for ordinary working families on Universal Credit - helping cover the cost of essentials like food, heating, and clothing instead of forcing families to struggle and punishing children simply because of the size of their family. With 4.5 million children currently living in relative poverty, a typical classroom of 30 children will have around 10 experiencing poverty. Child poverty has a stark impact on education – with children from the lowest-income families less likely to get good GCSEs, and twice as likely to be persistently absent than their better-off peers. Ending the two-child limit comes as part of the government's wider child poverty strategy which will be published in the coming weeks, setting out action to boost family incomes, cut the cost of essentials, and strengthen local support services. Tackling child poverty is central to the government's plan for national renewal—delivering security, opportunity, and respect for every family and community. By ending the two-child limit, the government is rejecting the failed policies of the past and putting fairness back at the heart of our welfare system, ensuring support is based on need—not arbitrary limits. Prime Minister Keir Starmer said: “This government is picking up the tab for a failed social experiment which has punished working families and directly pushed hundreds of thousands of children into poverty. We're not going to stand by and let more children needlessly be dragged into hardship. “The record highs of child poverty in this country aren't just numbers on a spreadsheet— they mean millions of children are going to bed hungry, falling behind at school, and growing up believing that a better future is out of reach despite their parents doing everything right. That is a moral failure and an economic disaster. That is what those defending this policy are standing for. “We cannot afford to pay the price of inaction. Every pound we spend lifting children out of poverty saves more money in the future that would otherwise be spent dealing with the lasting scars of child poverty in adulthood—whether that's poor health, dependency on welfare, or struggling to find and keep a decent job. “This isn't just the right thing to do—it is an investment in Britain's future. By putting fairness back at the heart of our social security system, we will give every child the best start in life.” Education Secretary and co-chair of the Ministerial Taskforce on child poverty Bridget Phillipson said: "The evidence is clear – for too long, poverty has been an immovable barrier to opportunity for far too many children across this country. “Now, we're breaking it down. We're removing the two-child limit and the cruel ‘rape clause' policy to restore dignity to the lives of families across our country, which also means more teachers focused on teaching and more children focused on lessons. “We choose to show children that no matter your background, whether you're the third child born into your family or not – this government sees you, we value you, we back you to go on to do all you can achieve in life.” Children who are hungry and living in unsuitable accommodation are not coming to school ready to learn, and schools are forced to divert resources to support them – meaning entire classes can be held back. By age five, children eligible for free school meals are already five months behind. By the end of secondary, that has widened to 19 months. With too many teachers reporting children unable to focus on learning the government has said enough is enough. It is taking action to tackle child poverty at its source, ending the two-child benefit limit - the single biggest driver of child poverty numbers to give families dignity, and children the future, they deserve.
Chancellor of the Exchequer, Rachel Reeves said:
Dan Paskins, Executive Director of UK Impact at Save the
Children UK “This is a big investment in our country's future prosperity. We should not forget that the majority of children growing up in poverty are in working families. Tackling child poverty is both morally right and vital for economic growth. If we reduce child poverty now, children are more likely to do well at school and get good jobs in the future, contributing more and costing less for decades to come. “We hope this is the start of a powerful legacy on tackling child poverty for the UK Government. Children deserve the best childhood, and should never be held back by the circumstances of their birth.” Mark Russell, Chief Executive, The Children's Society
“Removing the two-child limit is a game-changing moment for
children. It will give families who've been stretched to breaking
point some immediate relief and I'm so grateful to the Chancellor
and Prime Minister for being willing to take bold decisions that
prioritise children, even in a challenging economic climate,
because it is not just the right thing to do, it helps our
country's future too.
Alison Garnham, CEO, Child Poverty Action Group: “Lifting children out of poverty is the right thing to do, giving kids a happier today and stronger tomorrow. “This decision to support the country's children will strengthen our nation too. Now is the moment to commit to a future where no child grows up in poverty.” Following the rollout of free breakfast clubs, extension of free school meals, national expansion of Best Start Family Hubs and investment in government funded childcare, this is the latest in a number of measures already taken to transform children's life chances and save families thousands every year. This comes as the latest Good Learning Development data reveals government action taking root, with green shoots appearing towards its target to get 75% of children school-ready by age 5. This year, 68.3% had a good level of development, up from 67.7% last year and 65.2% following the pandemic in 2021. And the government has laid the foundations to fast-track improvements next year. From April, Best Start Family Hubs will roll out in every local area to give families access to vital support, and the government's £9 billion investment will further increase access to 30 hours government-funded childcare – saving families up to £7,500 and supporting children with the expert early years support they need to get school-ready. This comes on top of an uplift to the Early Years Pupil Premium by an unprecedented 45% from £388 to £570 per child per year, giving settings more resources to support disadvantaged children when development gaps first emerge. The government has also taken significant steps to get more people into work and make work pay – from raising the National Living Wage to over £12 an hour, introducing the Employment Rights Bill to strengthen protections like sick pay and parental leave, and launching the “Get Britain Working” plan to tackle economic inactivity, reforming job centres and improving the wider employment support offer backed by £3.5 billion. But with almost three quarters of children in poverty in working families, it's clear helping people into work alone isn't the silver bullet solution and there's more to do. The upcoming child poverty strategy will set out how the government is going further and taking a whole-system approach to address all the drivers and root causes of child poverty, building on existing action the government has taken. NOTES TO EDITORS
Further action to reduce child poverty and improve education outcomes
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