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.
4.5 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 UK government has announced that the two-child limit will be scrapped in full as part of its new Child Poverty Strategy. This will lift 350,000 children out of poverty overnight, and keep half a million free from poverty by the end of the decade. Nearly half (49%) of children living in poverty are in families with more than two children.
We have been campaigning for the Labour government to remove the two-child limit and benefit cap as part of our Paying the Price campaign. Scrapping the two-child limit will mean fewer children growing up in cold homes without enough food to eat, warm clothes to wear or a bed to sleep in.
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.
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.
We help decision-makers think about and act on the needs of children and young people.
Our recent policy reports:
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.
