A new study has found that providing families with an additional £20 per week could significantly reduce the likelihood of children living below the poverty line entering the care system. Researchers analysed data from six local authorities in London and south-east England, discovering that children in the poorest households are more prone to repeated involvement with social care services and are more likely to be placed on child protection plans.
Key Findings on Poverty and Child Welfare
Across the studied areas, 300 additional child protection plans were linked to children in the most financially disadvantaged homes, underscoring the role of severe poverty in shaping child welfare involvement. These plans are estimated to cost local authorities approximately £3.6 million over three years.
However, an examination of the £20 uplift to Universal Credit during the Covid-19 pandemic showed that children in eligible households were less likely to progress to child protection plans compared to those who were not eligible. They were also more likely to receive lower-level support, suggesting that modest increases in income can prevent the escalation of social care needs.
Impact on Families
Parents and carers interviewed for the study reported struggling to make ends meet due to debt, rising living costs, childcare expenses, housing insecurity, and related health challenges. Financial hardship was found to negatively affect children's health, emotional wellbeing, and school attendance, while also contributing to parental stress.
The study, led by Kingston University in collaboration with the National Children's Bureau, Policy in Practice, the University of Sussex, and Research in Practice, with funding from the Nuffield Foundation, calls for agencies to identify financial hardship at the earliest point of contact.
Expert Commentary
Professor Rick Hood from Kingston University London stated: "This study shows that when families’ incomes fall, involvement with children’s social care can increase - and when incomes rise, it can reduce the need for more intensive intervention. Even relatively small improvements in income can make a meaningful difference to families under pressure."
He added: "This has clear implications for policy. Decisions that reduce support for low-income families risk increasing demand on child protection services, while measures that strengthen family finances can help prevent problems escalating in the first place."
The researchers recommend that social care teams receive training to identify financial hardship and that practitioners hold respectful conversations about family finances to reduce stigma and encourage families to share information about their needs.
Keith Clements, senior researcher at the National Children’s Bureau, commented: "During the course of this study, the social care professionals we spoke to described being powerless to support families at an early stage where addressing their financial needs might make a difference in preventing their problems from escalating. This clearly needs to change. But it must be done in a way that recognises the considerable stigma, judgement, and discomfort that parents feel when quizzed about their incomes by social care staff."
