Labour publish ambitious child poverty strategy to lift over half a million kids out of poverty by 2030

Labour will launch its Child Poverty Strategy tomorrow, promising the biggest fall in child poverty in a single parliament since records began. 

The government says around 550,000 children will be lifted out of poverty by 2030, with millions more seeing their household incomes rise.

The strategy follows the government’s decision to scrap the two-child limit and sets out a broad programme aimed at cutting the cost of essentials, boosting family incomes and strengthening local services.

Failing to address child poverty has held back both the economy and children’s life chances. The strategy highlights long-term evidence showing children who grow up in poverty do worse at school, earn less throughout their lives and are more likely to be unemployed as adults.

Childcare reform for Universal Credit claimants

One of the most significant changes is a reform of childcare support within Universal Credit. From next year, parents returning to work after parental leave will be able to access upfront childcare payments, removing what ministers describe as a “debt trap” that currently prevents many from taking up jobs or increasing their hours.

Families on Universal Credit will also be able to claim childcare support for all of their children, not just the first two – a move aimed at helping parents with larger families back into work.

Reforming temporary accommodation

Those living in temporary accommodation experience one of the deepest forms of poverty, the strategy argues. 

To ameliorate this, local authorities will be banned from unlawfully placing families in Bed and Breakfast accommodation for more than six weeks. To support councils, the government is investing £8 million over three years in 20 local authorities with the highest use of B&Bs through new Emergency Accommodation Reduction Pilots.

In addition, the government will channel £950 million into a major expansion of the Local Authority Housing Fund from 2026, aimed at delivering up to 5,000 high-quality homes for use as temporary accommodation by 2030. This will be laid out as part of the upcoming homelessness strategy.

A new legal duty will also require councils to alert schools, GPs and health visitors when a child is placed in temporary accommodation, to ensure no child “falls through the cracks”. The government will work with the NHS to end the practice of new mothers being discharged to B&Bs or other unsuitable housing.

Cutting the cost of essentials

With the cost of some brands of infant formula having risen by 25% in two years, the government will set new guidance for retailers and allow families to use loyalty points, vouchers and gift cards to buy formula. Officials estimate this could save low-income parents up to £540 in a baby’s first year.

A moral mission

Prime Minister Keir Starmer said:

“Every child deserves the best possible start in life, with their future no longer determined by the circumstances of their birth. Yet too many children are growing up in poverty, held back from getting on in life, and too many families are struggling without the basics: a secure home, warm meals, and the support they need to make ends meet.

“I will not stand by and watch that happen, because the cost of doing nothing is too high for children, for families, and for Britain.

“This is a moral mission for me. It’s about fairness, opportunity, and unlocking potential. Our strategy isn’t just about reversing the failures of the past, it sets a new course for national renewal, with children’s life chances at its heart.”

Work and Pensions Secretary Pat McFadden said: “Tackling child poverty is an investment in working families and our country’s future. There is a direct link between children in poverty growing up to be adults not in work, education or training – we cannot afford to waste a generation’s potential and talents. 

“Our strategy will deliver support where families need it most, giving every child a good start in life and giving them the opportunity to succeed.” 

Education Secretary Bridget Phillipson said: “Child poverty is a stain on our country. I’ve seen the damage poverty does first hand, and bearing down on it sits at the very core of this government’s mission. This strategy, lifting over half a million children out of poverty, represents an historic moment for generations of families now and into the future.

“And whether it’s expanding free school meals, rolling out free breakfast clubs, or revitalising family services, we are determined to give every child the very best start in life.”

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