More than a third (35%) of children under the age of five are growing up in poverty. Or in other words, 1.2 million babies and toddlers in England and Wales.
This report from Fabian Society urges the government to act, and sets out why addressing early-years poverty should be central to the government’s broader child poverty strategy. Using public polling, it also explores public attitudes and opinions on a variety of policy measures.
It then makes recommendations that would lift tens of thousands of babies and toddlers out of poverty and benefit many more, while navigating the fiscal and political obstacles facing the government.
Key findings
High levels of early years poverty
- Under 5's have the highest poverty rate of any age group in England and Wales - 35%
- Over half a million live in deep poverty - equivalent to 15% of all under-fives
- Poverty is deeply damaging in your earliest years, with lifelong consequences
- While improving income from work and reducing costs can help tackle poverty, only an increase social security spending can lead to a significant and sustained fall in early-years poverty
Public opinion
- Through polling, the report explored public opinion on a variety of measures.
- The public think that early-years poverty will increase over the next four years.
- There is support for scrapping the two-child limit for families with a disabled child or families in work - but support for fully scrapping the two-child limit and scrapping the benefit cap is more limited.
- While cash payments are the most effective way to tackle poverty for low-income families, the public prefers solutions such as vouchers and discounted access to essentials
Recommendations
The report calls on the government to:
- Set out a transformative child poverty strategy, focused on the early years especially, with a binding target.
- Take 'first steps', with announcements included in the 2025 budget. These first steps should include:
- scrapping the two-child limit for working families and for those with a disabled child
- introduce baby and toddler elements into universal credit
- restore a health in pregnancy grant
- introduce a cost-of-living support package.
- Undertake 'major but essential reforms', with action starting this parliament. These includes:
- fully scrap the two-child limit
- abolish the benefit cap
- unfreeze local housing allowance
- implement a double lock on child-related benefits.