Child Poverty

Baroness Sherlock Excerpts

Thursday 18th June 2026 Lords Chamber

[The Minister of State, Department for Work and Pensions (Baroness Sherlock) (Lab)]

My Lords, let me add my words of appreciation to my noble friend Lady Lister, who must at this point be blushing from the compliments showered upon her, but they are very well deserved. I am thrilled that she got this debate and introduced it so well. I am grateful to all noble Lords who have spoken and for the great encouragement from around the Chamber, especially from my new encourager on the Lib Dem Front Bench, the noble Baroness, Lady Teather, whom I welcome to the Front Bench. I also welcome the noble Baroness, Lady Spielman, to her role on the Front Bench, and I look forward to taking issue with her later.

As we have heard, there are 4 million children in poverty in the UK. That is 700,000 more than there were in 2010. Almost 2 million children are in deep material poverty—a term I will come back to—lacking even the most basic essentials like a warm home or healthy food. We know that growing up in poverty has a devastating impact on children and their prospects. It affects their attainment at school, their future earnings, and their mental and physical health. They are more likely to grow up to become NEETs. Right now, we have more than 1 million young people not in education, employment or training. That is what happens when funding for services is cut, when wages flatline, and when people are trapped in the system.

As my noble friend Lord Kestenbaum said, this is indeed the fight of our lives. We have to break this link between a child’s background and their future success. I should digress for a moment. In 2000, I was running a charity working with single parents when Gordon Brown, then the Chancellor, hired me to work for him to advise on child poverty and how we tackled that, on Sure Start and on all the work that that Labour Government did. I was hugely proud to be part of that effort, so to be back here now with another child poverty strategy and a Government committed to it is something which I am hugely privileged to be part of. It is the fight of our lives, and we have to intend it or it will not happen.

The consequences of poverty impose heavy costs on the taxpayer through lost productivity and added pressure on public services. That goes to questions of economic growth and economic success—tackling poverty is also vital for our economy, as well as for the lives and opportunities of our children. This Government are correcting course. We want every child to have the chance to fulfil their potential—hence our child poverty strategy, which will lift 550,000 children out of poverty, the largest expected reduction in child poverty in a single Parliament. We are now focused on delivering the commitments in the strategy, monitoring its impact and the trajectory of poverty to ensure we build momentum and sustain our progress. I shall try to answer the very many questions, and when I fail, I will write and answer the ones I do not get to, with apologies ahead of time.

Let me start with the worries about the Child Poverty Unit, which I hope I can assuage. The unit has moved to the DWP, as the strategy set out that it would do. Many of the officials are the same officials who worked there right the way through. They have retained the same strong relationships that help deliver the strategy inside and outside government. We have some brilliant officials working on this and I really enjoy working with them. We also have the interministerial group chaired jointly by the DWP and the DfE, which met formally for the first time yesterday, involving 13 government departments. We are determined to make sure through this that child poverty remains a priority across government. I want to reassure the noble Baroness, Lady D’Souza, whether or not I can get all the way with her, that that kind of cross-government working is the only way we are going to make this work. I will read her words of wisdom again carefully when I come to read Hansard, but she pushes us in a really important direction.

My noble friends Lady Lister and Lady Donaghy asked whether I could share any information about the baseline report ahead of time. I regret to say to my noble friend Lady Donaghy that my petticoat must stay firmly where it is. I am sorry that I cannot offer any spoilers at this stage, but it is due out this summer, so they will not have too long to wait.

My noble friend Lord Kestenbaum raised questions about education, which I will come to in a moment. I will touch briefly on targets, raised by my noble friends Lord Babudu and Lady Lister, the noble Baroness, Lady Teather, and others. I think the most important thing is that what we are doing is visible. We already have a statutory duty to publish poverty statistics annually. As well as that, we are going to hold ourselves to account through the monitoring and evaluation arrangements put in place from this year and in future years, so the progress we make is transparent for all—and if we fail to make progress, that too is transparent for all. I think that will make the big difference.

My noble friend Lady Lister asked about migrant children, raised also by the noble Baroness, Lady Teather, and, in a rather different way, by the noble Baroness, Lady Spielman. Within the immigration system, the Home Office determines eligibility for benefits, and most migrants with temporary visas cannot access the benefits system. Access to public funds and benefits is usually at the point of settlement, although the Home Office, as has been noted, is consulting on changing the rules on that and will respond in due course. Migrant children who are subject to the no recourse to public funds condition have access to initiatives in place across the UK to support disadvantaged children, including free school meals, subject to certain eligibility thresholds, and support for children with special educational needs or disabilities. We are also looking to develop our understanding of that and its impacts for new questions in the Family Resources Survey.

Free school meals were raised by many noble Lords and Baronesses across the debate. Extending free school meals to all children in households on universal credit is a really significant step in tackling child poverty. I recognise the desire always to go further, but let us not just bank this and move on; let us look at this and see what a significant step it is. This expansion will lift around 100,000 children out of poverty and put money back into the pockets of families who need it most. We all know that children who are not hungry are more likely to attend school, to get better results and to improve their long-term life chances. That is one of my answers to the noble Baroness, Lady Coffey, about who should get them and who should not.

I am afraid I will not be able to do all that the right reverend Prelate the Bishop of Leicester would like, but I can tell him that the DfE is updating the eligibility checking system, which will make it easier for local authorities and schools to check whether children are eligible for free school meals and to ensure they receive a healthy, nutritious meal during the school day. I take his point about changes in the system, but local authorities are already taking innovative approaches to maximising take-up. For example, Sheffield runs an annual data-matching exercise using pupil records and housing benefit data to identify eligible children, which it can justify under its duty to support eligible children. I will undertake to make sure that the right reverend Prelate’s remarks on this are shared with my colleagues in the Department for Education, because he gave a lot of attention to it. I will make sure it is looked at carefully.

On the matter of free school meals, as a word to my noble friend Lord Brooke, we propose to make changes related to increasing fibre, reducing sugar and further restricting foods higher in fat, sugar and salt in free school meals, in line with the nutritional advice set by the Scientific Advisory Committee on Nutrition.

The question of employment was raised repeatedly, and it is incredibly important. It is one of the places I take issue with the noble Baroness, Lady Spielman, who mischaracterised the child poverty strategy as being about trying to get people to stay on benefits. I hope I have made clear that growing up in poverty makes children less likely to be in work, get skills and achieve as adults, so our job is to make sure we help lift them out of poverty to give them the best chance. We also want to get parents into work, so our new jobs and careers service will give tailored employment support, taking into account their circumstances, to get them into work.

Although parental employment is high, we are also aware that almost three-quarters of children in poverty live in working households. My noble friends Lord Hendy and Lord Sikka raised the question of in-work poverty and low wages. The Government are clear: work should be a route out of poverty. That is why the strategy takes action to support people into work and to improve incomes for working families. We have increased the national living wage, and I should pause to pay tribute to my noble friend Lady Donaghy for all that she did in making sure that we had a national minimum wage in the first place—another achievement of hers but also of a previous Labour Government. We will also look to increase access to affordable childcare so that more parents can take up and progress in employment; I will come back to that if time permits. We are improving universal credit to make sure that families keep more of what they earn, including reducing deductions, and we have increased the basic rate for the first time, but we are also tackling the cost of essentials.

We are doing a lot to invest in childcare. We are investing £82 million in over 600 school-based nurseries, creating 11,000 new places by September next year. For those on universal credit, we are improving the process for claiming support for childcare costs, removing cost caps so parents can get more money if they have more than two children; and there is a lot more out there for supporting families.

I turn to some of the questions that have been asked. The subject of education was raised by a number of colleagues, including my noble friends Lord Kestenbaum and Lady Blower. On the point about inspiring teachers, when my noble friend Lord Kestenbaum said that, I bet that every one of us thought for a moment of an inspiring teacher from our childhoods. I certainly think of Miss Scriven and Mrs Scriven—both in my school but, weirdly, unrelated—both of whom inspired me. I pay tribute to all those who are teaching now and to organisations like Teach First, bringing people into teaching to inspire the children so that we have people there enabling them to have a future.

Child poverty impacts all aspects of education. As I said, children who are hungry or living in unsuitable accommodation struggle to learn, but the fact is that schools also end up diverting energy and time to dealing with hardship rather than just teaching children. Again, getting the child poverty strategy right can help to free that up.

I am advised there are 4,654 more teachers—approximately—in 2025-26 than a year earlier, and our delivery plan was published in February to show that we are setting out to recruit 6,500 teachers in secondary and further education over the course of this Parliament.

My noble friend Lady Nargund made some important points about health inequalities. I cannot respond to all of them, but I will pick them up and talk to my noble friend Lady Merron, who is sitting next to me, about these matters from a health perspective.

In our 10-year health plan, we are expanding mental health support teams to cover all schools by 2029, an issue raised by my noble friend Lord Brooke. We are increasing the value of Healthy Start vouchers so that more families can buy the nutritious food they need. We have detailed the rollout of a supervised toothbrushing programme; it is shocking that tooth decay is the most common reason why children are admitted to hospital. Through the 10-year health plan, we are committed to expanding funding for healthy babies to cover all areas over the next decade.

A number of noble Lords asked about homelessness and housing. Homelessness levels are far too high, and we recognise the devastating impact that has on children’s lives, so we are taking action across the system to prevent homelessness and support families who are affected. We are investing £1 billion this year in homelessness and rough sleeping services, alongside further funding for local authorities to prevent families entering temporary accommodation in the first place. We are also making the biggest investment in social and affordable housing in a generation, alongside measures such as the Renters’ Rights Act to strengthen security for tenants and help protect families from losing their homes.

I was asked about the local housing allowance. The Government had to take difficult decisions at the Autumn Budget and prioritise measures that had the biggest impact on reducing child poverty, such as the removal of the two-child limit. It is difficult, because we already spend around £37 billion a year on housing support, including some £13 billion in the private rented sector. However, we are doing the most important thing to attack the gaps in and levels of rents, which is to address the underlying problem of a lack housing supply. That is why £39 billion is being invested in the Social and Affordable Homes Programme.

We continue to support households that are struggling with housing payments, through the Crisis and Resilience Fund housing payments in England and discretionary housing payments in Scotland and Wales. We also need to address the quality of homes, an issue raised by my noble friend Lady Nargund and others. The Government are introducing stronger standards and protection, including Awaab’s law, to tackle serious hazards, putting in new electrical safety regulations and a future decent homes standard.

My noble friend Lady Nargund raised the terrible situation of the death of children linked to temporary accommodation. The death of any child is devastating, and it is imperative that we prevent deaths caused by unsuitable accommodation or gaps in care. So we are taking a cross-government approach to strengthen protections and improve the experience of families in temporary accommodation, including eliminating the use of B&Bs for families except in emergencies. We are acting to prevent harm by introducing proactive health outreach for families, improving data through a new clinical code for children in temporary accommodation and ending the practice of discharging newborns into unsuitable housing.

My noble friend Lord Brooke raised questions around children and obesity. There are complex issues around obesity and poverty, as I know he understands very well. We are taking decisive action on the crisis of childhood obesity. We are restricting the advertising of junk food; we have consulted on proposals to ban the sale of high-caffeine drinks to children; and we have given local councils stronger powers to limit schoolchildren’s access to fast food. Defra is also taking important steps to address the whole issue of food, including developing good food neighbourhoods and working with local authorities to support community-led initiatives such as food clubs, community kitchens and nutrition programmes. I will return to the points raised by the right reverend Prelate the Bishop of Peterborough in a moment.

I was pleased that my noble friend Lady Paul raised the question of boys, and disadvantaged boys in particular. I recently attended an interministerial group chaired by the Deputy Prime Minister on the question of men and boys. We were talking about this very issue. The evidence about school attainment and the outcomes for boys is shocking. It will continue to be a focus in how the Government consider groups at particular risk of poverty, and their outcomes in childhood and later life. I will share my noble friend’s comments on this matter with my right honourable friend.

A number of noble Lords mentioned the benefit cap, including my noble friends Lord Babudu and Lady Lister, and the noble Baroness, Lady Teather. The Government believe that, where possible, it is in the interests of children to be in working households. Being in work substantially reduces the chance of poverty. The poverty rate of children living in households where all adults work is 16%, compared with 60% for children in households where no adults work. The benefit cap limits the total amount of benefits a working-age household can receive. But people who are working and earning at least £881 a month are exempt from the benefit cap, and there is also protection for the most vulnerable, as those in receipt of care or disability benefits are exempt from the cap. I know my noble friend Lady Lister knows that there is a statutory obligation to review the levels of the cap at least once every five years. They were last reviewed in November 2022 and, as such, they will have to be reviewed by November 2027. That will happen at a time the Secretary of State believes appropriate, but by that date.

The question was raised about partnerships and working with voluntary organisations. The noble Baroness, Lady Wheatcroft, gave a really interesting example. I would be grateful if she would let me have some more information about the charity: I like the sound of what was being described there. The point that she and others made—about the importance of children arriving at school at least ready to learn, or ready to engage with other children—is incredibly important. It is one of the things that I found so important when we developed Sure Start. The question of how to engage families is really important. In the Sure Start days, it was the very universality that reduced the stigma and therefore made it easier to get engagement. You could go along for a dental check-up and while you were there, other things could get picked up. But we are doing really important work with Best Start Family Hubs, which are reaching out, and that will be a way in which we develop this in the future.

We also recognise more broadly the voluntary and charitable work done by so many charities, and we are, for example, establishing the £500 million better futures fund, and the world’s largest social outcomes fund—a point raised by my noble friend Lord John—to support vulnerable children and families, and unlock up to £1 billion in total funding through collaboration with charities.

I was grateful to the right reverend Prelate the Bishop of Peterborough for describing what was happening at the Woodford Halse Community Larder. I recognise some of that: I visited some community larders, which are wonderful. I loved her point about the importance of dignity. This is about human dignity and attacking poverty is fundamentally about human dignity. On Monday I was invited by another bishop to visit a brilliant charity in Grimsby working with local, very disadvantaged families, supporting children and young people in a brilliant way. I found it inspiring and I was very pleased to hear more about it. I am always interested to hear examples of good practice, so I encourage anyone to let me have them. I am always happy to go and visit projects, so if noble Lords have things they would like me to go and visit, do please get in touch.

We are looking forward to engaging continually as we go forward. We had wonderful engagements with voluntary, community and faith organisations in developing the strategy, and those will carry on. I know that my honourable friend the Minister for Employment was very grateful to the right reverend Prelate the Bishop of Leicester for bringing together a multi-faith group to meet her. That is an engagement she looks forward to carrying on.

The noble Baroness, Lady Coffey, raised questions about metrics. I recognise that these are Labour debates, so I thank her for taking the time to come and do this, especially late on a Thursday afternoon. She and the noble Baroness, Lady Spielman, raised questions about metrics. First, I must say to the noble Baroness, Lady Spielman, that “relative low income” is not some random measure that this Government came up with. It is the internationally recognised measure of poverty which reflects changing living standards over time. The reason we put in more than one measure is to get a rounded view, so we are going to use that. But deep material poverty is a new measure which is based on material deprivation, and together they will help give us a more rounded picture of what poverty looks like in the UK.

The noble Baroness, Lady Coffey, also raised the issue of debt. The Best Start Family Hubs are designed to be a gateway to the full range of support that families need. Every hub will connect families to debt advice where it is needed, and that is something that can be really important.

The noble Baroness, Lady Smith, raised the question of how we will work with Wales. We are committed to continued collaboration with the devolved Governments to tackle child poverty across the UK. Specifically, we are committed to making sure that the UK-wide strategy complements their efforts and does not detract from their own work on poverty reduction. I look forward to working with the noble Baroness’s colleagues on this matter.

My noble friend Lord Babudu asked about the commencement of the socioeconomic duty. This Government are committed to ensuring that everyone can thrive, no matter their background, and we will commence the socioeconomic duty on public bodies soon.

My noble friend Lord John made some important points about NEETs. We commissioned Alan Milburn’s report; we welcome it, and we are already acting, and are going to act even more strongly, on it. I welcome my noble friend’s points about growth. As a Government, we are completely committed to expanding growth. However, I would also say that growth in itself does not mean that child poverty will improve. We have to be determined to tackle it, and this Government are determined to tackle it wherever we find it, including in ethnic minority families—an important point that was raised by my noble friend Lord Sahota.

I am running out of time, so I simply want to say that this Government are determined to break down barriers to opportunity, deliver growth and raise living standards. We will invest in children and families because we believe in the value of every person and the contribution that they can make to society. Every pound we spend lifting children out of poverty invests in the future health, education and social security system of this country. We can save children from the consequences of poverty. A good childhood is in all our interests, and we owe it to the children of our country to give them the best possible start in life.

I am grateful to all noble Lords for their contributions to this most important of subjects. It is not only the fight of our lives but a source of, and an opportunity for, real hope for the future. Let us work together to do it.