By Mari Williams, Save the Children Cymru and Mabli Jones, Bevan Foundation
Wales has the highest child poverty rates of any UK nation – a staggering one in three children in Wales are growing up in poverty and missing out on opportunities to flourish and thrive. The impact on children is huge. As part of Save the Children Cymru’s Power of Voice research work, children and young people told us that ‘all kids should be on the same level; some kids don’t get the childhood they should have’ and ‘if you have a lack of money then you can get bullied and get stressed because your parents can’t afford things.’
A Welsh Child Payment would be a powerful lever to help address this, ensuring all children have a decent start in life and investing in a better future for Wales. Modelling by the Bevan Foundation shows that this would be “the most powerful and effective” way of lifting the highest proportion of households above the poverty line.
Plaid Cymru have promised to pilot a Welsh Child Payment - Cynnal - and in so doing “build the case for devolving the powers we need to roll the payment out in full, Wales-wide.”
But what legal powers do they have to implement a pilot? And what avenues exist to roll out a Welsh Child Payment in full? These are questions that Bevan Foundation and Save the Children Cymru commissioned legal expert Prof. Emyr Lewis to answer, and we’re publishing his paper this week. Here are some of the key findings and implications:
1. Legally, a Welsh Child Payment is possible
While social security is a reserved matter, the Welsh Government could use its executive powers given to it by the Government of Wales Act 2006 to introduce a Welsh Child Payment. Section 60(1) of this Act gives Welsh Ministers the power to do anything which they consider appropriate to achieve the promotion or improvement of the economic, social or environmental well-being of Wales. As Prof Emyr Lewis states: “Reducing child poverty would certainly improve the social well-being of Wales, and most likely its economic well-being. If Welsh Ministers considered it appropriate to introduce a [Welsh Child Payment] for that purpose, it would be within their powers under section 60 to do so.”
2. Practically, the cooperation of the UK Government is necessary
While the legal path is relatively clear, the practical arrangements are more complex. The UK Government’s agreement on certain matters will be essential, especially data sharing between the DWP and Welsh Government with regards to eligibility for the scheme, and whether the payment would be treated as income by the DWP and HMRC. As Prof Lewis states: “Going it alone without clarity on the latter point risks potentially undermining or significantly diluting the payment’s efficacy.” The UK government has said it’s committed to tackling child poverty. The extent to which they cooperate with the Welsh Government in the implementation of a Welsh Child Payment will be a test of this intention.
3. Politically, the budget will need to be found
The Welsh Government will need to fund both the pilot and any roll-out – both the payment itself, along with establishing and maintaining the administrative machinery. The Bevan Foundation have calculated that a payment matching the Scottish system (£28.20 a week - the rate for 2026/27) to all 0–15-year olds in Universal Credit households would cost around £352 million a year – just over 1 per cent of the Welsh Government budget (note this doesn’t include the administrative costs).
But the potential gains are significant. Scotland’s child poverty figures are significantly lower than Wales, due to policies including the Scottish Child Payment. Emerging evidence from a research project by the Universities of York, Glasgow and the London School of Economics and Political Science (LSE) has found “statistically significant reductions in both child material deprivation and food insecurity relative to England, after the introduction of the SCP (Scottish child payment).”
And longer term, the economic benefits of reducing child poverty far outweigh the costs with reduced demand and pressure on services such as health and welfare, as well as generating higher tax revenues.
4. Longer term, more devolved powers are necessary
While a legal basis exists for implementing a Welsh Child Payment without the need for the devolution of further powers, it is clear that – particularly for a fully rolled-out Welsh Child Payment scheme – introducing legislation to support a Welsh Child Payment would be the stronger longer-term option. The Senedd cannot currently legislate about social security schemes supported from public funds – for this to happen the Government of Wales Act 2006 would need to be amended by introducing one or more exceptions to the reservation of social security schemes, including one covering top-up benefits. There are two routes for this to happen: an Act of Parliament or an Order in Council made by the King. Both are viable routes (the first was the route Scotland took to get the powers they needed for the Scottish Child Payment), but for either avenue, the support of the UK Government is required. This may take some time, and so the process should begin as soon as possible to ensure the Cynnal pilot can transition into a fully rolled-out scheme without disruption to those receiving the benefit. And devolving greater powers would provide an opportunity to revisit the fiscal settlement as well, bringing more money and accountability to Welsh Government.
Legally, practically and politically a Welsh Child Payment is possible. Introducing it could significantly impact the lives of children in Wales in a similar way to what we’re seeing the Scottish Child Payment achieve. The Welsh Government need to boldly press on with designing and implementing the Cynnal pilot, while beginning the negotiations with the UK government to ascertain the constitutional powers to bring a full Welsh Child Payment into law.
