The UK Government has launched a historic Child Poverty Strategy aimed at lifting 550,000 children out of poverty by 2030, marking the largest expected reduction in UK child poverty since records began. The strategy targets working families, providing measures to prevent children from growing up in temporary accommodation, expand access to childcare for families on Universal Credit, and reduce essential costs, including saving parents up to £540 on baby formula.
In Wales, where around 200,000 children live in poverty, families will benefit from a range of interventions, including scrapping the two-child Universal Credit limit, a real-terms increase in the Universal Credit Standard Allowance, £150 off energy bills, and National Minimum and Living Wage increases. These measures are expected to improve household incomes for 7.1 million children across the UK, including 1.4 million in deep material poverty.
The strategy was launched by Prime Minister Keir Starmer in South Wales alongside First Minister Eluned Morgan, highlighting cross-government collaboration to tackle the root causes of child poverty. The initiative emphasizes fairness, opportunity, and unlocking potential for children, addressing long-standing issues that affect educational outcomes, health, and future employment prospects.
The Welsh Government will receive an additional £505 million in funding, on top of existing allocations, and £425 million in new spending powers to strengthen public services and support families. The strategy builds on recent efforts by the Welsh Government, including expanded free childcare, school uniform support, free school meals, and programmes helping young people into education, training, or work.
The Child Poverty Taskforce, established after the 2025 General Election, informed the strategy by exploring how government levers can most effectively reduce poverty. Key interventions, such as removing the two-child limit in Universal Credit, are projected to lift 450,000 children out of poverty in the final year of the Parliament, with additional measures further increasing this number to 550,000. The strategy positions child poverty reduction not only as a moral imperative but also as a long-term investment in the UK’s future.
