Child Poverty Strategy

Monday 2nd March 2026 Lords Chamber

Question

14:37

Asked by

[Baroness Chakrabarti]

To ask His Majesty’s Government what progress they have made in relation to the (1) implementation, and (2) outcomes, of the Child Poverty Strategy.

[The Minister of State, Department for Work and Pensions (Baroness Sherlock)]

My Lords, the Government are progressing urgent legislation to remove the two-child limit from April, which is expected to lift 450,000 children out of poverty by the final year of this Parliament. Our monitoring and evaluations framework sets out our plans to track progress as part of our 10-year strategy for delivering long-term change. This summer we will publish a baseline report setting out the latest statistics and evidence, with annual reporting thereafter.

[Baroness Chakrabarti (Lab)]

I am grateful, as always, to my noble friend the Minister, who I suspect is one of the finest advocates for the Government in either House. She will know that some critics of the Government crave a greater overarching vision or story; others complain that policies such as removing the two-child benefit cap somehow reward the feckless. Would she like to take this opportunity to explain where this strategy sits amongst government priorities and why it is so important?

[Baroness Sherlock (Lab)]

I am grateful to my noble friend and commend her on her great taste in Ministers, if I may say so. It is also a really great question. The Prime Minister made it clear very early on what a high priority it was for him, and for this Government, to tackle the horrors of child poverty. Some 900,000 more children were in poverty as a result of the previous Government. This Government are determined to stop that, so policies such as removing the two-child limit and others that we have already announced will lift around 550,000 children out of poverty by the end of this Parliament. Do we know why it matters? It is not just to those individual children while they are kids; poverty scars their life chances. Children who grow up in poverty are more likely to have mental health difficulties by age 11. When they are adults, they are more likely to be unemployed and likely to earn less. Our country cannot afford to do that to our children, and our country cannot afford our children to underachieve. That is why it matters.

[Lord Farmer (Con)]

My Lords, the better futures social outcomes fund was announced in the child poverty strategy, with government payments tied to the achievement of measurable improvements in people’s lives, such as increased family stability. Family breakdown can be a driver, as well as an effect, of poverty. Can the Minister explain how progress in this area will be measured and whether the funding structure will enable ongoing work, after milestones have been reached, to prevent families slipping back into difficulties again?

[Baroness Sherlock (Lab)]

My Lords, the noble Lord is absolutely right about the importance of family stability; it is extremely important for children to grow up in a stable family wherever possible. He is right that poverty is both a driver and a consequence. We know that poverty puts huge pressures on families. Lifting the two-child limit and giving families higher rewards than those that they have now will lift over half a million families out of poverty and help to take the pressure off.

The noble Lord mentioned the better futures fund. That will be a 10-year programme focused on a range of long-term measurable outcomes, including family stability. He asked about how it will be measured. It is currently in the design phase, but the funding will primarily be used for social outcome partnerships, and those bidding will be expected to show the sustainability of their proposed ideas. We absolutely take seriously the importance of family stability. We are going to address the questions of poverty that drive problems, but we also want to do what we can to support families.

[Lord Palmer of Childs Hill (LD)]

My Lords, I thank the Minister for her normal diligence on this subject. Alongside new measures

“to increase incomes, reduce essential costs and strengthen local services”—

I take those words from the Government’s own document—between 2025 and 2026 there have been 11 strategy documents. They are very good reading, but they do not help the people with the problems that I have just outlined. Can we speed this up? Let us stop talking about 10 years and instead talk about what is happening this year and next year.

[Baroness Sherlock (Lab)]

I will say two things. Children did not fall into poverty overnight and they will not all come out of it overnight. Poverty has a range of drivers. We are determined not simply to address this problem now but to find a way of tackling it in the long term. However, since the noble Lord wants examples of action, I will give him some. What have we already done? As we have made clear, we are going to put £39 billion into social and affordable housing. We are expanding free school meals to all families on universal credit, putting £600 million into the holiday activities and food programme, extending the warm home discount scheme to an extra 2.7 million people, and removing the two-child limit to lift 450,000 children out of poverty in this Parliament. That is action, and this Government are taking it.

[Baroness Deech (CB)]

My Lords, may I ask the Minister what the definition of poverty is? If it is “below the average” then there is no hope of getting rid of poverty. Is it an absolute standard? Secondly, has she calculated the amount owed to the Child Maintenance Service by absent fathers? Why should the taxpayer fund maintenance for children that the father owes and is not paying?

[Baroness Sherlock (Lab)]

My Lords, the Government are using two metrics. We are using relative low income after housing costs, which is the international standard measure, but we are also using deep material poverty. That is a new measure that has been devised based on material deprivation, which reflects our commitment to addressing deeper child poverty. Material deprivation is traditionally calculated by asking the public what essentials they think families should have and getting a list of them. They are things such as warm homes, appropriate housing, enough food to eat, et cetera. The measure shows that if a family cannot afford at least four of those then they are in deep material deprivation. Having both those metrics helps us to measure what is going on in families.

I completely agree with the noble Baroness about child maintenance. Everybody should pay for their children, whether they are still with the other partner or not. The Government have done a lot to drive up the rate of support for child maintenance. We are taking reform steps to make it even better, and we will keep doing that.

[Baroness Lister of Burtersett (Lab)]

My Lords, the strategy has been widely welcomed for the reasons given by my noble friend and because of its holistic cross-government approach, but there is considerable concern that Home Office policies on asylum, settlement and no recourse to public funds will undermine the strategy with regard to migrant children, who are already at disproportionate risk of poverty, especially deep poverty. Can my noble friend therefore confirm that the strategy includes migrant children and do what she can to encourage Home Office colleagues to do more to protect children in poverty from the impact of their policies?

[Baroness Sherlock (Lab)]

My Lords, my noble friend raises an important point. I assure her that the strategy, when it was being developed, looked at all children. We want to recognise the impact of poverty on children, whether or not they made any choices—because, as children, they do not make choices—contributing to their circumstances. It is clear that some of the measures we are taking, for example in relation to benefits, will benefit only those families who are eligible for those benefits. For example, the two-child limit affects only those on universal credit. Universal credit is available to families only in circumstances where their immigration status permits it. However, there are safety nets in the system to protect children, and I would be happy to share that view with colleagues across government.

[The Lord Bishop of Leicester]

My Lords, like many others, I warmly welcome the child poverty strategy; there is much to commend it, such as—to pick one particular aspect—the expansion of free school meals for children. However, I have a question about auto-enrolment of children for free school meals. There is much evidence to show that auto-enrolment not only lifts children out of poverty but increases educational attainment and allows schools to ensure that they get the pupil premium needed. Can the Minister therefore tell us what barriers remain for the introduction of auto-enrolment?

[Baroness Sherlock (Lab)]

My Lords, I am happy to raise that with colleagues in the DfE, but I reassure the right reverend Prelate that a lot of work has been and is going on in relation to free school meals for children on universal credit, making sure—whether it ends up being auto-enrolment or whether it is about communication or identification—that we get this out to all children. Free school meals are really important and are crucial to children: not only do they get to eat but hungry children struggle to learn, so it is a win-win all round. We think this is an incredibly important measure and we want to make sure that it works.

[Viscount Younger of Leckie (Con)]

My Lords, no child should grow up in poverty, and we agree that reducing child poverty must be an absolute priority for any Government. The surest answer to helping reduce child poverty is to ensure that more families can access the security and dignity of work, which I do not believe the noble Baroness mentioned. There are many young parents among the current high level of youth unemployment—16.1%—so what steps are the Government taking to engage directly and urgently with this cohort to enable them to secure work and optimise the chances of giving their children a better future?

[Baroness Sherlock (Lab)]

My Lords, I absolutely agree with the noble Viscount, and I have said many times from this Dispatch Box that, for many families, work is the best route out of poverty. Of course there will always be those who cannot work, and they deserve a welfare state that supports them, but this Government have invested considerable sums and will invest considerably more in supporting families to work. We already know that parents are actually more likely than average to be in employment. They want to work—they want to support their kids, they want to be a good role model and they want to show them that that is what adult life looks like—but many of them will need extra help, so we are investing heavily in those who have barriers to work. The noble Viscount mentioned young people. The Government have done so much on young people. He will know that Alan Milburn is doing a report for the Government looking at why so many of our young people—one in eight—are not in employment, education or training. That figure is a disgrace and we have to tackle that.