The UK Government has unveiled its most substantial strategy in years to tackle child poverty, setting an ambitious target to lift approximately 550,000 children out of poverty by 2030. The comprehensive plan, launched on 5 December 2025, addresses the root causes of hardship across the nation, where a record 4.45 million children are currently living in poverty.
Core Measures of the Poverty Reduction Plan
The cornerstone of the new strategy is the decision to lift the two-child benefit cap. This single policy reversal is projected to have an immediate and profound impact, particularly in cities with large families. In Birmingham alone, this change is set to assist a staggering 67,230 children, a figure that underscores the city's status as having more families with three or more children than anywhere else in the country.
Alongside boosting family income, the plan confronts the crisis of homelessness head-on. A new commitment will end the unlawful placement of families in Bed and Breakfasts (B&Bs) beyond the six-week legal limit. To support this, the government is investing £8 million into Emergency Accommodation Reduction Pilots across 20 local authorities with the highest B&B usage for homeless families.
Investment in Housing and Childcare Support
To alleviate the severe shortage of suitable temporary housing, a significant £950 million will be provided through the Local Authority Housing Fund starting in April 2026. This funding is designed to deliver up to 5,000 high-quality homes by 2030, offering families a more stable and dignified environment while they seek permanent solutions.
The strategy also includes vital measures to help parents into work. It expands Universal Credit childcare cost support to cover all children in a family, not just the first two. Furthermore, it will be easier for new parents returning from parental leave to access upfront payments for childcare costs, removing a key barrier to employment.
Addressing Essentials and Data Sharing
Recognising the strain of daily living costs, the plan sets out clear guidance for retailers to help families access more affordable infant formula. On a systemic level, a new legal duty will require local councils to notify schools, health visitors, and GPs whenever a child is placed in temporary accommodation. This crucial step aims to ensure that no child slips through the net and misses out on essential support services during a period of instability.
The launch of this wide-ranging child poverty strategy marks a significant shift in policy, focusing on both immediate financial relief and long-term structural solutions to one of the nation's most pressing social issues.
