CPAG’s 2025 pre-Budget briefing

There are a record 4.5 million children living in poverty 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 key driver of rising child poverty, so scrapping it would be the most cost-effective way to reduce child poverty. Forecasts show that not scrapping the limit in its entirety will mean child poverty is likely to rise over this parliament.
Another key priority is removing the benefit cap, which pushes poor families into even deeper poverty. Our analysis shows that some affected 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, and ensure that capped families benefit from the scrapping of the two-child limit.
Wider reforms to social security are needed to reduce child poverty further, including increasing the adequacy of children’s and other benefits.