Many families in the United Kingdom are having a hard time managing their daily expenses. With rising prices of food, electricity, and rent, households with low income—especially those with children—are under serious pressure. Even with government support, it has become difficult to meet basic needs.
One of the biggest reasons families are struggling is the lack of enough financial help. While some benefits exist, they are not enough to keep up with rising costs. A rule known as the two-child cap has made it worse, as it stops extra support for a third or later child born after April 2017. This policy has left many families short on money.
Now, campaigners and charities are asking the UK government to introduce a new £27 weekly payment for each child. This support could help ease the burden for families and reduce child poverty. The Department for Work and Pensions (DWP) is now under growing pressure to take action and approve this proposed benefit.
Rising Poverty and Growing Challenges for Families
Over the last few years, the cost of living in the UK has gone up quickly. Many families who were already living on tight budgets now find it even harder to afford daily needs. Even basic things like food and heating are becoming unaffordable for some households.
Although support programs like Universal Credit and Child Tax Credit are available, they haven’t increased enough to keep up with inflation. As a result, more families are falling below the poverty line. Around 1.5 million children are affected by the two-child benefit limit, which has made the situation worse for large families.
This rule has led to calls for changes in the system. Campaigners believe that an extra weekly payment for each child could help thousands of struggling households recover.
Scotland’s Child Payment Plan as a Model
In Scotland, a similar plan is already in place and has been working well. Since 2021, low-income families have been receiving £26.70 every week per child. This has helped reduce child poverty rates more effectively than in the rest of the UK.
Key Details of Scotland’s Child Payment:
- Introduced By: Scottish National Party (SNP)
- Amount: £26.70 per week, per child
- Eligibility: Families on means-tested benefits
- Children Helped: Over 330,000
- Payment Schedule: Every four weeks
- Adjusted for Inflation: Yes, reviewed yearly
Because of its success, many people are asking the UK government to bring a similar scheme to England, Wales, and Northern Ireland—with a slightly higher amount of £27.
What the £27 Weekly Benefit Would Look Like
The new proposed benefit aims to support low-income families in England, Wales, and Northern Ireland. It would follow the same style as Scotland’s program but offer £27 per week for each child.
Here’s what the plan includes:
- Eligible Families: Those receiving Universal Credit, Child Tax Credit, or Income Support.
- Amount: £27 each week per child.
- Coverage Area: England, Wales, and Northern Ireland.
- Inflation Review: Yes, reviewed annually to match cost-of-living changes.
- Payment Method: Direct transfer to bank accounts using current welfare systems.
Experts believe this plan could help over 500,000 children rise above the poverty line in just one year.
Why the New Benefit Could Make a Big Difference
Supporters of the £27 benefit say it could help the entire country, not just poor families. Here’s why:
- More Relief for Parents: Families will be able to buy food, clothes, and school supplies more easily.
- Stronger Economy: Studies show that every £1 spent on child benefits can return £2.30 to the economy through long-term benefits.
- Less Pressure on Services: Families in better conditions need less help from social services and hospitals.
- Better Education Outcomes: Children in stable homes often perform better in school and grow into healthier adults.
Challenges That Could Delay the New Support
Even though the idea has strong support, the government has pointed out a few problems that could slow it down.
Main Issues Raised:
- Budget Concerns: Officials say the government may not have enough funds unless taxes are increased.
- Political Debates: Some leaders believe creating more jobs is a better way to help families than giving benefits.
- System Changes Required: The current welfare systems will need updates to handle the new payments.
Despite these challenges, many believe doing nothing will lead to bigger problems in the future.
What’s Likely to Happen Next?
Right now, the DWP is under growing pressure to approve the new £27 weekly payment. Scotland’s successful program has shown that it is possible and effective. People across the rest of the UK are now asking for equal support.
If the government agrees, this new benefit could bring major relief to thousands of families. Children would be healthier, do better in school, and have brighter futures. It could also strengthen the economy by reducing poverty and increasing opportunities.
Now, it is up to the government to decide whether to support this change—or leave the current system as it is.