New help for low income families: what the government’s child poverty plan actually means for you

Many parents across the UK are stretched so thin that even basics like food, school uniforms and a warm home can feel out of reach.

The government has now released a child poverty plan, saying it will lift around 550,000 children out of poverty by 2030 across all the measures combined.

That is a massive promise. And when you’re choosing between topping up the meter or topping up the fridge, you need the simple version.

What’s actually changing? When will help arrive? And will it make a real difference to families who are struggling right now?

Here’s the short, clear guide to what the plan means in real life.

The two child limit is being scrapped

This is the big one. The two child limit in Universal Credit has been one of the biggest drivers of poverty since 2017.

The strategy confirms that removing the two child limit alone will lift around 450,000 children out of poverty, with the rest of the total coming from other changes such as free school meals and childcare support.

Most families who gain from this are working households. This change should mean more money coming in each month for parents who have been hit hardest by rising costs.

If you’re unsure what you can claim, CPAG’s guide on Universal Credit is a good starting point.

Free school meals are being expanded

From September 2026, every child in a household receiving Universal Credit will get free school meals. This will help over 500,000 children.

For a family with two children, school meals can cost more than £900 a year. Removing that cost makes a real dent in the weekly shop and helps parents make their money go further.

Breakfast clubs are also being funded in schools across England, with millions of meals already given out.

If you’re weighing up childcare options, you might find our guide on how to save money on groceries useful.

Parents on Universal Credit will get better childcare support

At the moment, one of the biggest barriers for parents returning to work is the upfront childcare payment. Nursery fees can easily cost hundreds before your first payslip arrives.

The strategy introduces a rule change: parents on Universal Credit who are returning from parental leave will now be able to get upfront childcare costs covered.

Support will also extend to all children, not only two, which matters for bigger families trying to work more hours.

If you’re weighing up childcare options, you might find Money Helper’s guide on how to save money on childcare useful.

Ending children living in B&Bs for months on end

More than 172,000 children in England are living in temporary accommodation, including thousands stuck in B&Bs far longer than the legal six week limit.

Families report cramped rooms, mould, noisy neighbours, and no space for homework or play. Many children become tired, stressed and fall behind at school.

The government now says it will:

• end placement of families in B&Bs beyond six weeks
• invest £8 million in councils to reduce reliance on B&Bs
• build 5,000 better temporary homes by 2030

If your family has been placed in emergency accommodation and you’re unsure what support exists, organisations like Shelter offer free housing advice.

There will also be a new legal duty for councils to notify schools, GPs and health visitors when a child is placed in temporary accommodation, so children get proper support instead of slipping through the cracks.

Help with baby formula costs

Formula prices have shot up, with some brands rising by 25% in two years.

For many parents who cannot breastfeed or choose not to, this cost is huge. The strategy aims to help by:

• allowing families to use loyalty points, vouchers and gift cards to buy formula
• setting clearer guidance for retailers
• potentially saving parents up to £540 in a baby’s first year

If you’re using supermarket loyalty schemes to cut your weekly shop, our guide on Tesco Clubcard points and how to boost their value can help you squeeze more from every £1.

Other support coming for families

A few more things tucked inside the plan include:

• raising the National Minimum Wage, worth about £900 extra a year for a full-time worker
• expanding early years places and family hubs
• more crisis support through a £1 billion fund

You can also check if you’re missing out on any Grants and benefits to help you pay your energy bills over on the Citizens Advice website.

So will this actually make a difference?

The government says this strategy marks “the biggest reduction in child poverty in a single Parliament since records began”.

Independent experts, including the Institute for Fiscal Studies, agree that removing the two child limit and expanding free school meals will make the biggest difference. But they warn the overall impact depends on how the wider economy performs.

But if even half of what’s promised arrives on schedule, many families will see:

• more support with childcare
• lighter food costs
• fewer upfront fees
• improved housing standards
• better safety nets

For parents who are already stretched to their limit, even a small bit of breathing room can make a huge difference.