Why the next Welsh Government must introduce a Welsh Child Payment

Melanie Simmonds, Head of Save the Children Cymru

Child poverty is an injustice seen and felt across Wales impacting so many families through no fault of their own but also affecting us all.

Recent figures show that Wales has the highest child poverty rates of all the UK nations with one in three – over 200,000 children – living in relative income poverty after housing costs.

The estimated annual cost of child poverty to the UK economy is £39 billion putting pressure on essential services such as health and welfare and ultimately creating irreversible damage to children’s futures – something we need to be investing in more than anything else.

And that’s because we know that investment works. The overall cost of scrapping the two-child limit, a price tag of £3.6 billion, is set to lift 75,000 children living in Wales out of poverty by 2030. Let’s do the comparative maths – that’s more than ten times less than the overall economic cost of child poverty.

We also know from talking to our Save the Children Scotland team how the Scottish Child Payment – currently at £28.20 per child per week – is already making a difference to families with a further boost for babies to £40 per week promised from next year.

A mother in Edinburgh told our Scottish colleagues how the extra money helps her buy food and clothes and have that little bit extra to put towards her energy bills, and that it has just taken away the  ‘stress about getting into debt, which gets me so down.’

We’re constantly hearing from families how the pressure of poverty takes a toll on their dignity and well-being and chips away at their confidence and security. Parents should not be left facing trade-offs between buying nappies or school shoes and putting food on the table, or letting their children take part in the activities that help them grow.

Too many children are missing out on things that should be part of every childhood: school trips, sports, music, and the chance to play and spend time with friends. When some children can join in while others cannot, the result is often exclusion and inequality that can last a lifetime.

As part of our Power of Voice  research work, children and young people told us that ‘all kids should be on the same level; some kids don’t get the childhood they should have’ and ‘if you have a lack of money then you can get bullied and get stressed because your parents can’t afford things.’

This isn’t about asking for luxuries, it’s about ensuring fairness, security, and opportunity for everyone.

And this is why money matters and why the next Welsh government needs to invest in a long-term financial support mechanism that puts money in families’ pockets.

Save the Children Cymru are among other organisations in Wales such as Home Start Cymru, Barnardo’s and Citizens Advice Bureau calling for the introduction of a Welsh Child Payment in our manifestos.

In the same way that it has benefited families in Scotland, this could provide a much-needed income-boost to Welsh families living in poverty, helping them meet basic needs such as food, clothing and housing, and enabling children to participate in social and educational opportunities.

Social security powers

A long debate has already been had on this over the years, and we know that Wales do not have the same devolved social security powers as Scotland. But we echo the Children’s Commissioner for Wales’ sentiment that political parties will need to find a way to achieve this through ambitious policy or legal changes that would allow this to happen.

Modelling by the Bevan Foundation also shows that this would be “the most powerful and effective” way of lifting the highest proportion of households above the poverty line.

Childhoods only happen once and we don’t want today’s children to be looking back on memories of missing out on opportunities and seeing their parents stressing about finding money to pay for basics such as food, clothes and household bills.

A dedicated Welsh benefit system, including a Welsh Child Payment, which can remove barriers and provide financial security to thousands of families, is one way of investing in everyone’s futures.

Read our Listen To Us More Manifesto here