Starmer's £3bn Plan Aims to Lift 550,000 Children Out of Poverty
Government launches child poverty strategy

Prime Minister Sir Keir Starmer has launched the Government's long-awaited strategy to tackle child poverty, framing it as both a moral imperative and a sound economic investment for the UK's future.

The Moral and Economic Case for Action

Unveiling the 116-page plan on Friday 5 December 2025, Sir Keir described the statistic of around 4.5 million children living in poverty in the UK as "shocking". He emphasised the profound "individual human cost", citing skipped meals and poor accommodation as daily realities for many.

"Should any of this really be happening in a country like ours?" the Prime Minister asked. He argued that poverty acts as a "huge barrier to potential" for children, stating: "After all, if you are arriving in your classroom hungry or tired from sleeping in a cold bed, then you are simply not in the best position to learn. We should not stand for that."

Beyond the moral argument, Sir Keir positioned the strategy as a "sound investment" that can improve life chances, strengthen the economy long-term, and alleviate pressure on overstretched public services.

Key Measures and Financial Impact

The centrepiece of the plan is the scrapping of the two-child benefit limit from April next year, a policy already confirmed in last week's Budget at a cost of £3 billion. This single measure is projected to reduce child poverty by 450,000 children by 2029/30.

When combined with other initiatives, such as the wider rollout of free school meals, the Government states the overall strategy will lift 550,000 children out of poverty by 2030.

The plan seeks to justify part of the £26 billion in tax hikes announced in the Budget, a significant portion of which is funding increased welfare payments. Sir Keir said this would also ease cost-of-living pressures for the working poor.

Housing and Wider Support

The strategy includes concrete steps to address poor housing conditions linked to child poverty. It pledges to end the unlawful placement of families in bed and breakfasts beyond the six-week legal limit. Recent figures showed 2,070 households with children in England had been in such accommodation for over six weeks by the end of June.

Furthermore, the Government said it will work with the NHS to stop the practice of discharging mothers with newborns into B&Bs or other unsuitable housing. Homelessness minister Alison McGovern revealed that in the five years to 2024, 74 children, including 58 babies, died with causes attributed to the effects of temporary accommodation.

Other measures include a rule change to extend eligibility for upfront childcare costs for people returning from parental leave, aiming to help Universal Credit recipients get back to work.

Reaction and Criticism

The strategy received a mixed response. Charities like the Child Poverty Action Group and Save the Children UK welcomed the "bold measures" as a good starting point with real potential to transform lives.

However, critics warned against "warm words" without sufficient action. Big Issue founder Lord John Bird, who experienced child poverty, expressed concern that in a tough economic climate, the strategy lacked "ambitious targets". The National Children's Bureau echoed this, calling for binding ten-year reduction targets.

Conservative leader Kemi Badenoch launched a political attack, labelling Labour's budget a "budget for benefits". She argued the best way to lift children from poverty is to grow the economy and ensure parents have well-paid jobs, accusing the Government of making "some people poorer to give other people on benefits money".

Think tank the Institute for Public Policy Research (IPPR) provided analysis suggesting regions with higher child poverty will see larger proportional benefits. It forecast that the North West will see the largest reduction, with around 90,000 children lifted out of poverty by the end of this Parliament.