As the UK Government prepares the Autumn Budget, it faces difficult fiscal choices. However, any decisions taken must be guided by a clear principle: children who are already experiencing poverty, hardship and insecurity should not be asked to bear the cost of meeting wider spending pressures.
The cost-of-living crisis for UK families has been ongoing for several years, and the war in the Middle East and effective closure of the Strait of Hormuz will put even more pressure on families in the coming months and beyond. While the effects of these events will impact all families, they will be felt most severely among those on the lowest incomes.
Globally, the poorest children will bear the heaviest burden, especially those living in fragile and conflict affected states least able to absorb supply disruptions or price volatility. Where shocks compound already critical levels of hunger, displacement and economic instability, the consequences for children's nutrition, health and survival can be rapid and irreversible. Concerted action will be needed to prevent and mitigate harm to the most vulnerable children at home and around the world.
Across our submission, we identified practical and evidence-based measures that would help reduce child poverty, ease cost-of-living pressures, strengthen support during the early years, and ensure children around the world are not left behind. Taken together, these recommendations would provide families with greater financial security, reduce barriers to employment, and create stronger foundations for children's health, development and future opportunities. As the Government considers its priorities, we urge it to focus on a small number of measures that would have the greatest immediate impact on children's lives.
When it comes to our key domestic priorities, we want to see the Government provide immediate breathing space for families facing the greatest financial pressures, the Government should:
- Introduce a social tariff on energy bills and expand the Warm Homes Discount.
- Rebase Local Housing Allowance to the 30th percentile of local rents.
- Remove the benefit cap.
- Make local public transport free for low-income families, children and young people.
In an interconnected world we don’t get to do the domestic without thinking about the international. Therefore, the Government must also ensure that action to support families in the UK does not come at the expense of children living in poverty, conflict and climate crises globally.
We urge the Government to:
- Maintain Official Development Assistance (ODA) at no lower than 0.3% of GNI and re-establish the FCDO as the spender of last resort for ODA.
- Expand the use of guarantees and other innovative financing tools to unlock additional investment for children and communities in lower-income countries.
- Use the UK's unique influence, including through its forthcoming G20 Presidency, to advance action on unsustainable debt, helping countries create the fiscal space needed to invest in children and essential public services.
This Budget is an opportunity to demonstrate that tackling child poverty, supporting families and investing in children are not competing with economic growth and fiscal responsibility, but are essential to achieving them.
By prioritising children in the UK and globally, the Government can help build a stronger, fairer and more resilient future.
We hope it will seize that opportunity.
