Government publishes Child Poverty Strategy

The government published its long-awaited Child Poverty Strategy, "Our Children, Our Future: Tackling Child Poverty", in early December 2025, setting out measures to boost family incomes, reduce the cost of essentials and strengthen local support¹. The strategy is the result of work by the Child Poverty Taskforce, established shortly after the 2024 General Election¹. The Resolution Foundation described the lifting of the two-child limit, announced in the Budget, as the strategy's flagship policy².

On social security, the strategy restates the removal of the Two-Child Limit on Universal Credit, which Gingerbread says could lift 40,000 children out of poverty by 2030; over half of the households affected by the limit are single-parent families¹. The child element of Universal Credit will be increased, and government estimates suggest around 560,000 families will see higher benefits by 2029 to 30¹. The strategy also highlights previously announced increases to the Universal Credit standard allowance and lower deductions¹. It does not include abolition of the Benefit Cap, which limits the total amount claimable under Universal Credit; almost 70% of households affected by the cap are single-parent families, and over half of these have a youngest child under five¹.

On child maintenance, the strategy restates plans to consolidate the Child Maintenance Service into a single service-type, similar to Collect and Pay, and to consult on child maintenance calculations; government estimates suggest this could lift 20,000 children out of poverty on its own¹. Gingerbread says that where child maintenance is received it reduces the child poverty rate by 25%, and that 52% of single-parent families who do not receive the right amount struggle to pay essential bills¹.

On employment and childcare, the strategy reaffirms the expansion of 30 hours of government-funded childcare in September, and confirms the Department for Education will lead a wider review of childcare¹. The Employment Rights Bill will introduce a new "reasonableness test" for flexible working requests, and parents on Universal Credit returning to work from parental leave will be able to access support to cover upfront childcare costs¹.

The Resolution Foundation said the strategy's analysis shows that most households subject to the two-child limit (59 per cent) already have at least one adult in work, and that of those not in work, more than nine in ten (91 per cent) either have a child under three or a disabled family member with additional care needs². It also corrected its own Budget analysis, stating that new welfare policy over this Parliament reduces spending by £0.5 billion in 2029-30, rather than increasing it by £0.7 billion as it had previously said².

Separate research published by the University of Bristol's Personal Finance Research Centre puts the number of children in relative low-income households after housing costs at 4.5 million (31%), with almost three-quarters of children in poverty living in working families³. It describes the strategy's approach as three-pronged: boosting family incomes, driving down the cost of essentials including investment in social and affordable homes, and strengthening local support, including a £1 billion Crisis and Resilience Fund for England³.

Why it matters for households

The measures affect families claiming Universal Credit, particularly larger families and single-parent households. The removal of the two-child limit and the increase in the child element are restated commitments rather than new announcements, and the benefit changes are forecast to reach around 560,000 families by 2029 to 30¹. The Benefit Cap remains in place, so some households will still have their total award restricted¹. Child maintenance changes are at consultation stage, meaning the timing of any new calculation rules has not been reported¹.

What happens next

The strategy confirms a consultation on child maintenance calculations and a wider Department for Education review of childcare, but no dates for either have been reported¹. The 30 hours of government-funded childcare expansion is reaffirmed for September¹. Gingerbread says it will continue to engage with the government on the strategy's implementation¹.