Child poverty in the UK set to rise unless benefits policy is radically overhauled

The Resolution Foundation warns that child poverty in the UK — currently at around 31 % of children (~4.5 million) in 2024-25 — is projected to climb to 34 % by 2029-30 unless stronger income support is introduced. The report argues that partial reform of the two‑child limit on benefits would still leave child poverty higher than today, but scrapping it entirely — combined with uprating benefits and aligning the benefit cap and Local Housing Allowance with actual housing costs — could reduce child poverty markedly. Without such intervention, the economy faces rising human and social costs, while government faces a tightening budget constraint and the risk of failure to meet its own strategy targets.

No half measures • Resolution Foundation

1. What is meant by “child poverty” in the Resolution Foundation analysis, what is the recent trend, and where is it projected to head if current policy continues?

2. Name two policy options (short of fully scrapping the two-child limit) that could reduce child poverty, and explain briefly how each would work and its likely limitations.

3. Discuss the main economic advantages and disadvantages of fully removing the two-child limit on benefits.