Social Security: Child Poverty

Lord Bailey of Paddington Excerpts

Wednesday 15th July 2026 Lords Chamber

[Lord Katz (Lab)]

My noble friend is right. We want to make sure that the social security system is there to support all families when they need it, while taking action to make sure that work pays. Our ambition is that social security provides a safety net where needed and that it supports families to increase income through work where possible. At the same time, the Government are committed to ensuring that welfare spending remains on a sustainable path. We set a new welfare cap at the Autumn Budget 2024 to ensure that welfare spending remains under control over the course of this Parliament. Overall, forecast welfare spending is virtually unchanged from the last OBR assessment, increasing by only 0.1% in 2029-30. Tackling child poverty requires investment, including in our social security system. The cost of failing to tackle poverty is too high, both for children and for the country. This Government are investing up front to avoid those costs of failure.

[Lord Bailey of Paddington (Con)]

My Lords, what role will work play in alleviating poverty in this country, given that work has benefits beyond the financial difference it makes to a family household?

[Lord Katz (Lab)]

The noble Lord is right. We want to see everyone who can work working. That is why we have taken a number of actions to fix our broken social security system and to get people into work, particularly when it comes to targeting the over 1 million NEETs—young people not in education, employment or training—and giving them a start. For instance, the new youth jobs grant incentivises employers to take on young people who have been on universal credit for over 18 months, giving them jobs, with a £3,000 grant.