CPAG's 2025 Budget Submission

There are a record 4.5 million children living in poverty living in the UK today. CPAG forecasts that without further action this number will rise to 4.7 million by the end of this parliament.

The government must invest in social security to reduce child poverty, boost living standards overnight and improve wider economic, health and educational outcomes.

The top priority is scrapping the two-child limit for all children. This is the most cost-effective way to reduce child poverty; abolishing the two-child limit would instantly pull 350,000 children out of poverty and stop another 150,000 being drawn into poverty over this parliament, as well as reducing the depth of poverty for a further 700,000 children.

Another key priority is removing the benefit cap, which pushes poor families into even deeper poverty. Our analysis shows that some families can be left with £3 a week to live on after rent. Abolishing the benefit cap would reduce the depth of poverty for 300,000 children.

Wider reforms to social security are needed to reduce child poverty further, including increasing children’s benefits and removing barriers to work in universal credit (UC).