In recent months, the United Kingdom has seen a sharp rise in the number of families struggling with financial hardship. Many are finding it difficult to keep up with rising costs for basic needs like food, energy, and housing. In response to this growing crisis, there are strong calls for the Department for Work and Pensions (DWP) to introduce a new £27 weekly child benefit payment.
Campaigners are urging the UK government to act quickly. A new report by the Joseph Rowntree Foundation shows that child poverty is worsening in England, Wales, and Northern Ireland. Scotland, however, has already made progress by offering a weekly Child Payment Scheme, which has helped many families manage their expenses better.
Many people believe that a £27 weekly child payment could make a real difference to low-income families. It could provide immediate help to those struggling the most, especially larger families hit hard by current benefit rules. Pressure is building on the government to take action before the child poverty problem becomes even more serious.
The Growing Problem of Child Poverty in the UK
Over the last few years, the cost of living has gone up quickly. Food prices, rent, gas, and electricity bills have all become much higher. Families that were already finding it hard to pay their bills are now struggling even more.
Although Universal Credit and other welfare benefits help a little, they have not kept up with inflation. Families now have much less money to cover their daily needs. In 2017, the government introduced a two-child limit for benefits. This means that families cannot claim extra help for a third or later child born after April 2017. This rule has made life harder for around 1.5 million children.
If nothing changes, experts predict that by the end of 2025, more than 4 million children in England alone could be living in poverty.
How Scotland’s Child Payment Has Helped
In 2021, Scotland introduced a new plan to fight child poverty: the Child Payment Scheme. It has been praised for its success.
Since the scheme started, Scotland has seen a faster drop in child poverty compared to the rest of the UK. Many now believe that England, Wales, and Northern Ireland should create a similar plan to help their own families.
What the New £27 Weekly Payment Might Offer
Campaigners want the DWP to start a £27 per week payment for each eligible child. Here’s what the plan could look like:
- Who would get it: Families already receiving Universal Credit, Child Tax Credit, or Income Support.
- How much: £27 per child every week.
- Where: Across England, Wales, and Northern Ireland.
- Inflation protection: Payments would be updated every year to match inflation.
- How payments would be made: Money would be paid straight into bank accounts through the current welfare system.
Experts say that this payment could lift more than 500,000 children out of poverty in just the first year.
Benefits of the £27 Weekly Child Payment
The introduction of this new payment could bring several important changes:
1. Better Financial Support for Families
Families with low income would have more money for essentials like food, heating, clothing, and school supplies. This would help reduce stress and improve day-to-day living.
2. Boost to the Economy
According to the Institute for Fiscal Studies, every £1 spent on child benefits can create £2.30 of value for the economy. Helping children now means they are more likely to grow up, get good jobs, and contribute more later on.
3. Lower Pressure on Public Services
With fewer families living in poverty, there would likely be fewer hospital visits, less crime, and less need for emergency welfare programs. This would save the government money in the long term.
4. Better Results in Education
Children from families that are more financially stable tend to do better at school. This can lead to more students graduating and finding good jobs, helping break the cycle of poverty.
Challenges Facing the New Benefit Plan
Although many support the idea of a £27 child payment, there are some big challenges:
- Government Spending:
The government is worried about how to fund the new payment without raising taxes or cutting other services. - Political Views:
Some leaders believe it’s better to create more jobs and raise wages instead of increasing welfare payments. - System Changes:
Setting up a new payment system would take time and resources to add to the current welfare structure.
Still, many believe that the long-term cost of ignoring child poverty would be much higher.
What Could Happen Next?
The DWP is under heavy pressure to introduce the £27 child payment. Rising living costs, benefit restrictions, and economic problems are making life harder for families every day.
Scotland’s example shows that offering a regular payment directly to families can have a powerful effect on reducing child poverty. If the UK government acts now, millions of children across England, Wales, and Northern Ireland could have a better chance at a healthy, happy future.
The decision now rests with the government — will they invest in helping children, or will they stick with the current system?