Insights From: House of Lords Roundtable - The Difference Cash Transfers to Children Can Make
Written on February 4th , 2025 by Ilona Pinter and Suzanna Nesom
On 4th February 2025, we held a House of Lords Roundtable, hosted by Baroness Ruth Lister, to explore the impact of cash transfers to families with children. The presentation from the event is available here.
The discussion took place in the context of the UK government’s development of a cross-departmental ten-year Child Poverty Strategy, due to be published in spring. This follows commitments in the Labour manifesto to ‘develop an ambitious strategy to reduce child poverty’ and to ‘end the mass dependence on emergency food parcels’.
The roundtable was also informed by recent findings from the Joseph Rowntree Foundation’s (JRF) report on the state of UK poverty, which highlighted the growing divergence in child poverty rates across the UK. While child poverty was estimated at 24% in Scotland, it is higher in England (30%) and Wales (29%), and slightly lower in Northern Ireland (23%). Analysis by JRF also shows that under central Office of Budget Responsibility (OBR) projections, without any further policy changes, only Scotland will see child poverty rates fall by 2029. Baroness Lister highlighted that this presents both a warning and a message of hope, emphasising the importance of investing in social security support to tackle child poverty.
The roundtable provided an opportunity for Members of Parliament, House of Lords peers, government officials, researchers, and civil society representatives to hear about the Family Finances project - a comparative mixed-methods study examining the effects of the Scottish Child Payment (SCP) on families. The session featured contributions from researchers, a parent with lived experience of the SCP, and other stakeholders.
The Scottish Child Payment
John Dickie from Child Poverty Action Group (CPAG) Scotland highlighted that the Scottish Child Payment is making a real difference for families. Low-income households receiving Universal Credit with two children receive an additional £2,776 per year through the SCP, and those with three children receive £4,165 annually. This financial support helps Scottish families better meet their children’s needs compared to similar households in England. But comparative analysis between Scotland and other nations remains limited.
The Family Finances project, led by Emma Tominey and Ruth Patrick from the University of York, aims to fill this evidence gap. The study employs a mixed-methods approach, combining quantitative analysis of survey and administrative data with qualitative interviews and expenditure diaries with families in Scotland and Northern England. The project’s early findings were shared during the roundtable including from interviews with parents in Scotland and England.
Rhys - a mother with a five year old child, living in Scotland - told us that there was ‘no doubt’ that the SCP made a difference to her family and that it goes “some way into alleviating some of the pressures that people have on their budgets and stuff. For me … it would just go into buying food and essential household items.”
Chloe, who lives in England with her three children aged six, ten and 11, spoke to us about the challenges of getting by with the current support available to her family under Universal Credit: “I am thankful that I’m obviously in a position where I can receive benefits but I don’t think it’s enough money to have any kind of real standard of living. You survive and that’s it really.”
While she was happy that families in Scotland could benefit from this additional support, she felt frustrated that this wasn’t available to families in England: “well why can’t we do more for people that need support also? And for children that need support? … it’s heartbreaking really.”
During the roundtable itself, we also heard from Lisa - a parent and research participant - who shared her experience of receiving the SCP. She described how the financial support had transformed her family’s daily life, helping her to afford food, basic essentials, and activities for her child that would otherwise be impossible. She emphasised that the SCP allowed her to “live with more dignity”, asserting that “this is something everyone deserves”.
The Broader Impact of Household Income
Kitty Stewart from the London School of Economics highlighted the clear and robust evidence linking household income to children’s development. Financial stability enables parents to invest in resources and activities that enhance children’s well-being, while also alleviating parental stress. Research shows that increased household income has direct causal effects on children’s educational and health outcomes, independent of other factors such as parental education levels.
Aaron Reeves, also from the London School of Economics, critiqued the two child limit and the benefit cap, arguing that these policies have had minimal effects on parental employment and fertility rates, but have had significant negative impacts on parental mental health and poverty rates.
Looking ahead
During the Q&A discussion, there was widespread agreement that ensuring families have access to adequate resources cannot be delayed. It is critical not only for children’s present realities but also for their longer-term aspirations and outcomes. The discussion also reinforced that redistributive policies do not hinder, but can promote economic growth. As the UK government finalises its Child Poverty Strategy, the roundtable reinforced the importance of generating evidence to inform policy-making.
We are grateful to the abrdn Financial Fairness Trust, and the Cost of Living Research Group at the University of York for funding this event.
