On December 4, 2025, the UK government unveiled its most ambitious child poverty strategy to date, pledging to lift around 550,000 children out of poverty by 2030 and bring an end to the practice of housing families with children in bed and breakfasts (B&Bs) beyond the legal limit. The sweeping plan, which has been hailed as historic by campaigners and charities, also includes measures to make childcare more accessible for families on Universal Credit and to help parents save on essentials like infant formula.
According to BBC News, the government’s new approach comes at a time when child poverty levels are at a “historic high,” with 4.5 million children—roughly a third of all children in the UK—living in relative poverty after housing costs. In England alone, more than 172,000 children are currently in temporary accommodation. The situation is particularly acute in Birmingham, where BirminghamLive reports that as of June 2025, about 800 families with dependent children were living in B&Bs, some for months at a time due to a dire shortage of family homes for rent. Across the West Midlands, 16,580 children were in temporary accommodation at the same point.
Homelessness Minister Alison McGovern underscored the gravity of the situation, stating on BBC Breakfast that the effects of temporary accommodation had been attributed to the deaths of some children and babies. “If that’s still happening by the time I’ve finished my job, I’ll consider myself a failure,” McGovern said, referencing the tragic statistic that in the five years to 2024, 74 children—including 58 babies—died, with temporary accommodation cited as a contributing factor.
The government’s plan sets out to end the “unlawful placement” of families in B&Bs beyond six weeks—currently only supposed to be a last resort and for a maximum of six weeks by law. However, from April to June 2025, more than 2,000 children had been living in B&Bs for longer than that legal limit. To address this, the government will continue an £8 million pilot in 20 local authorities with the highest use of B&Bs over the next three years, and it plans to build 5,000 high-quality homes for better temporary accommodation by 2030, funded through £950 million from the Local Authority Housing Fund starting April 2026. These moves are part of a broader upcoming homelessness strategy.
One of the most significant changes is the scrapping of the two-child benefit cap, a measure that campaigners have long argued disproportionately affects larger families. Birmingham, which has more families with three or more children than anywhere else in the country, stands to benefit substantially: the reversal of the cap will directly help an estimated 67,230 children in the city alone, according to BirminghamLive. Nationally, the Institute for Fiscal Studies forecasts that ending the two-child benefit cap will account for 450,000 of the children lifted out of poverty by the end of the current Parliament, with the remainder attributable to expanded free school meals and other interventions.
The strategy also introduces a new legal duty for councils to notify schools, health visitors, and GPs when a child is placed in temporary accommodation. This, the government says, will ensure “a more joined-up approach” to supporting affected children and prevent any from slipping through the cracks. The government will work with the NHS to end the practice of mothers with newborns being discharged to B&Bs or other unsuitable housing, a practice that McGovern called “shocking” and “unacceptable.”
Childcare costs, long cited as a major barrier to employment for parents on low incomes, are also addressed. From next year, eligibility for upfront childcare costs will be extended to people returning from parental leave who receive Universal Credit, making it easier for new parents to return to work without facing a debt trap. The government claims this will support more parents with more than two children into work by covering childcare costs for all their children, not just the first two.
Another practical measure is aimed at helping parents save on the cost of infant formula, which has risen by 25% over the past two years. The government will set clear guidance for retailers and allow families to use loyalty points, vouchers, and gift cards to purchase formula. This could save parents up to £540 in a baby’s first year and remove unnecessary barriers for low-income families, according to BirminghamLive.
Prime Minister Sir Keir Starmer said, “Too many families are struggling without the basics: a secure home, warm meals, and the support they need to make ends meet.” The government expects 7.1 million children will see household incomes rise by the end of this Parliament, including 1.4 million currently in deep material poverty—a group defined as lacking at least four of 13 essential items, such as three meals a day or a damp-free home.
The strategy has drawn widespread praise from charities and advocacy groups, though many stress that more needs to be done. Priya Edwards of Save the Children UK told BirminghamLive, “Families will be better off under this plan... Scrapping the two-child limit to benefits, expanding free school meals, and increasing childcare support for families, including those returning to work after maternity leave, are bold measures to improve childhoods—not the sticking plaster measures of the past.” Dame Clare Moriarty, Chief Executive of Citizens Advice, agreed, calling the scrapping of the two-child limit “a big step forward that will make a huge and immediate difference to thousands of families.”
However, some critics remain skeptical about the plan’s ability to deliver on its promises. The Institute for Fiscal Studies warned there is “considerable uncertainty over how large a reduction in measured poverty these policies will ultimately deliver, partly due to genuine economic uncertainty.” Lord John Bird, founder of the Big Issue magazine, expressed concern that “warm words will not translate into tangible progress” without more ambitious targets. Pepe Di’Iasio, general secretary of the Association of School and College Leaders, called for “more than just these policies in isolation,” urging a cross-government response backed by widespread investment.
Educators, too, have welcomed the focus on housing and poverty, but note the challenges ahead. James Cassidy, headteacher of Eton Park Junior Academy, told the BBC that a “vast majority” of his pupils’ families are struggling with the cost of living and job security, and that poor housing and poverty have a knock-on effect on children’s concentration and friendships. Daniel Kebede of the National Education Union said, “Today’s announcement is a long-overdue acknowledgement that child poverty is not inevitable, it is a consequence of political choices... If implemented with urgency and backed by proper investment, this strategy could begin to turn the tide.”
The government’s plan also includes ongoing support for food security, with expanded free school meals for all children from families receiving Universal Credit and the introduction of free breakfast clubs. The Health Foundation called the strategy progress, but urged it to go further to “deliver a preventative approach that tackles the deep structural causes of poverty.”
While the government’s child poverty strategy marks a significant shift in policy and ambition, the coming years will reveal whether these bold promises can be transformed into real change for the millions of children whose futures hang in the balance.
