As part of its strategy to combat child poverty, the government has committed to eradicating the practice of raising children in temporary accommodations such as B&Bs and to improving childcare accessibility for families receiving Universal Credit.
According to the government, these comprehensive initiatives are projected to lift approximately 550,000 children out of poverty by 2030, representing what it calls “the most significant reduction within a single Parliament since records began.”
However, the Institute for Fiscal Studies (IFS) has expressed “considerable uncertainty” regarding the ultimate impact of these policies on measured poverty, citing, in part, “genuine economic uncertainty.”
Homelessness charities have welcomed the proposed measures, while advocating for more substantial reforms to alleviate poverty.
Shadow Work and Pensions Secretary Helen Whately stated, “You don’t lift children out of poverty by making the whole country poorer.”
She emphasized that employment is “the best way out of poverty,” adding, “Only the Conservatives have a credible plan to grow the economy, support parents back into work and tackle child poverty.”
Child poverty levels are currently at a “historic high,” according to government data, with 4.5 million children, roughly a third of the child population, living in relative poverty after housing costs. It is reported that three-quarters of these children are from working families.
Prime Minister Keir Starmer commented, “Too many families are struggling without the basics: a secure home, warm meals, and the support they need to make ends meet.”
The government’s child poverty strategy follows the reversal of the two-child benefit cap, the expansion of free school meals to all children from families receiving Universal Credit, and the introduction of free breakfast clubs.
The IFS estimates that eliminating the two-child benefit cap is projected to account for 450,000 of the children lifted out of poverty by the end of the Parliament, with the expansion of free school meals accounting for the remainder.
The IFS noted that other announcements, including those related to temporary accommodation, were focused on “much smaller groups of people.”
In England alone, over 172,000 children are currently residing in temporary accommodation.
To address this issue, the government intends to put an end to the “unlawful placement” of families in B&Bs for periods exceeding six weeks.
Current regulations stipulate that councils should only house families with children in B&Bs as a last resort, and for a maximum duration of six weeks.
However, data from April to June 2025 indicates that over 2,000 children had been living in B&Bs for longer than the stipulated period.
The government acknowledges the “devastating impact” of living in temporary accommodation on children, including adverse effects on their physical and mental health, disrupted schooling, and family instability.
James Cassidy, headteacher of Eton Park Junior Academy in Burton-upon-Trent, told the BBC that he is increasingly observing pupils arriving at school tired, anxious, and stressed, which is negatively impacting their concentration and social interactions.
He stated that the “vast majority” of his pupils’ families are experiencing challenges related to the cost of living and maintaining long-term employment.
Mr. Cassidy welcomed the government’s housing measures, noting that, in his experience, families often attempt to cope alone when placed in temporary accommodation.
Under the government’s plans, councils will also be legally obligated to notify schools, health visitors, and GPs when a child is placed in temporary accommodation to facilitate “a more joined up” approach to providing support.
The government has confirmed that it will extend an £8 million pilot program aimed at reducing reliance on B&Bs as emergency accommodation in the 20 local authorities with the highest usage over the next three years.
Furthermore, it intends to construct 5,000 homes for use as more suitable temporary accommodation by 2020 as part of its forthcoming homelessness strategy.
Children’s Commissioner Dame Rachel de Souza has welcomed the heightened focus on improving the quality of temporary accommodation, where many children live in what she described as “shocking Dickensian conditions.”
The homelessness charity Shelter concurred with the government’s assertion that “no child should be growing up in a B&B or mouldy bedsit.”
However, Shelter has called on ministers to “get children out of temporary accommodation and into permanent homes” by unfreezing housing benefits and constructing a new generation of social rent homes.
The Health Foundation acknowledged the strategy as a step forward but argued that it “must go further” to implement “a preventative approach that tackles the deep structural causes of poverty.”
Meanwhile, Lord John Bird, founder of the Big Issue magazine, criticized the government’s strategy for lacking “ambitious targets.”
He stated, “In this challenging economic climate, there is every reason to worry warm words will not translate into tangible progress.”
Pepe Di’Iasio, general secretary of the Association of School and College Leaders, suggested that the plans will make a “real difference” but has called for “more than just these policies in isolation.”
He said, “A cross-Whitehall response, backed by widespread investment, is required.”
The government claims that the strategy also includes more accessible childcare, as childcare costs are one of the most significant barriers to re-entering the workforce, with many parents struggling to cover upfront fees before receiving their first paycheck.
It has pledged to implement a rule change next year to extend eligibility for upfront childcare costs to individuals returning from parental leave, which it believes will make it simpler for new parents receiving Universal Credit to return to work.
Additional measures include assisting parents in saving money on baby formula.
Additional reporting by Vanessa Clarke
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