Social Security
Channelling income directly to families through the social security system is the quickest and most effective way to reduce child poverty. We welcome the Government’s recognition of this in its Child Poverty Strategy.
Yet the social security system is no longer delivering on its core purpose: providing adequate support when families need it most. The link between benefit levels and the cost of meeting basic needs has been broken. As a result, the real-terms value of benefits has fallen to a 40-year low, and nearly five in six low-income households on Universal Credit are now going without essentials (Joseph Rowntree Foundation, 2026).
The two-child limit has been one of the most damaging policies for families. By restricting child-related support for third and subsequent children, it has pushed thousands into poverty. In London alone, it has affected 64,000 children. We therefore strongly welcome the Government’s decision to scrap the two-child limit.
However, other policies continue to undermine progress. The benefit cap, which limits total support regardless of local living costs, particularly harms families in London, where housing and everyday costs are so high. In August 2025, around 39,500 London households saw their incomes reduced because of the cap (Trust for London). Without reform or abolition, it risks weakening the impact of ending the two-child limit.
Families that include a disabled person face especially high risks of poverty. Many rely heavily on social security to meet unavoidable extra costs, making them particularly vulnerable to benefit cuts.
Calls to actions
Government must scrap the benefit cap at the earliest opportunity.
Government must set up an independent process to review benefit adequacy with a view to putting in place an ‘essentials guarantee’ as proposed by Trussell and JRF and endorsed by hundreds of other organisations, including 4in10 and many of its members. As part of this review specific consideration should be given to meeting the essential needs of babies and toddlers, including clothing, equipment such as a safe place to sleep and a buggy, toys, books, nappies, and wipes.
Government must reform the sanctions regime within the Universal Credit system which pushes families into debt rather providing them with the scaffolding they need to escape poverty.
Government should reform the PIP assessment process to ensure disability benefits are accessible for families who need them.
Gingerbread
Gingerbread’s #SupportNotPunish campaign highlights the impact of a punitive Universal Credit regime on single parent families and calls for reform so that it supports not punishes those who need it most. Our report
