Press Story

Rates of child poverty have tripled among families with two full-time working adults since 2000
Children of single parent families are twice as likely to fall into poverty and less likely to escape it than children in couple households
IPPR and Action for Children call for overhaul of benefits system to support working parents

Children are now significantly more likely to be growing up in poverty despite all adults in their household working full time than they were two decades ago, reveals new research by the Institute for Public Policy Research (IPPR) and Action for Children.

The research finds that the risk of child poverty in full-time working families has risen sharply since 2000. For couples, the likelihood has tripled – from 2 per cent to 6 per cent – while for single parents, it has risen from 9 per cent to 14 per cent, affecting around 460,000 children across both groups.

The findings highlight a fundamental shift in the nature of poverty in the UK. In 2024/25, almost three-quarters of children in poverty were living in working households, up from around half at the turn of the century – challenging the long-held assumption that work alone provides a reliable route out of hardship.

Children in single-parent families face particularly high risks. Around 15 per cent of children in single-parent households move into poverty over the course of a year - more than double the rate for couple families - while only 22 per cent manage to escape, compared to 30 per cent of children in couple households.

In couple families, the research shows that increases in second earners’ income can have a particularly strong impact on reducing poverty, with more than half of affected children moving above the poverty line when a second earner enters work or significantly increases their earnings.

However, structural barriers mean many low-income working families struggle to progress in the labour market. While higher earnings remain one of the most important routes out of poverty, the analysis shows that second earners are far less likely to see pay rises or increases in working hours than the main earning parent.

High childcare costs, limited availability outside of term time, inflexible jobs and a lack of informal support mean that increasing hours or moving into better‑paid roles often come with stark and sometimes impossible trade‑offs.

In a focus group as part of the research, one parent explained:

“If I was single, I wouldn’t be able to work at all – my youngest isn’t at school yet and we don’t have family nearby. We’ve had to organise everything around childcare just to keep one income coming in.”

These pressures mean that for many families, poverty is not the result of being out of work, but of being trapped in jobs that do not offer realistic opportunities to increase income while balancing caring responsibilities.

To reduce in‑work child poverty, IPPR and Action for Children are highlighting the need for a shift in policy, from a narrow focus on getting parents into work towards supporting them to progress and increase their incomes. The report calls on the government to:

Fix universal credit childcare support, including covering 100 per cent of costs (up from 85 per cent) and removing upfront payment barriers
Pilot a tailored employment and progression offer for parents on Universal Credit, with specialist support and personalised plans
Reform the Universal Credit work allowance to strengthen work incentives, particularly for second earners and single parents
Expand access to flexible, family-friendly and better-paid jobs, including high-quality part-time roles
Invest in skills and training that work for parents, designed around caring responsibilities and local labour markets

Henry Parkes, principal economist and head of quantitative research at IPPR, said:

“Parents are doing everything we’ve asked of them – working full time and juggling childcare – yet many are still watching their children grow up in poverty. That’s not a failure of individual families, it’s a sign the system is no longer delivering on its basic promise.

“This research shows that it’s not inevitable: when families are supported to progress, especially second earners, their finances improve quickly. The problem isn’t effort, it’s the barriers we’ve built into work and childcare, and those can be fixed.”

Lucy Schonegevel, director of influencing, policy & campaigns at Action for Children, said:

“At Action for Children we see many families who are working as hard as they can, balancing jobs with caring responsibilities, yet still struggling to make ends meet. Our family hubs and crisis grants provide a lifeline for some of these families, however these should not be something they need to rely on. The Child Poverty Strategy offers a strong foundation on which to build, but we would like to see more practical measures to help working families to progress in the labour market and increase their earnings. This should include fixing the many issues with Universal Credit childcare support, piloting an enhanced progression offer for parents on Universal Credit and strengthening the work allowance to improve work incentives - particularly for second earners and single parents.”

Anna*, a full time working single parent to an eleven-year-old, said:

“If greater support was given to working parents, particularly around childcare, many parents would be able to progress more quickly and earn more money”.

“I have had to wait for the right stage in my child’s development before being able to consider progression [at work]. This has been a necessary decision as a single parent.”

“I can now see a light at the end of the tunnel. When I think about the future, particularly as my child gets older, I see there is a point where I will finally be able to live rather than just survive. I will feel like a millionaire. I see colleagues in senior roles living comfortably. They can shop without checking their bank balance first. For me, every trip to the shop involves logging into my bank account to make sure I can afford what I need. One day, I hope not to have to do that.”

“My long‑term goal is to be fully independent from benefits. I do not want to rely on Universal Credit, and I find it uncomfortable and stressful having to report spending and submit receipts. Delays and lags in the system add further anxiety. I do not openly tell people that I receive Universal Credit, as it is something I find difficult and would prefer not to need.”

*Not her real name

ENDS

Henry Parkes, Jamie O’Halloran and Scott Compton, the authors of the report, and Lucy Schonegevel, director of influencing at Action for Children, are available for interview

CONTACT

Rosie Okumbe, digital and media officer: 07825 185421 r.okumbe@ippr.org

NOTES TO EDITORS

The IPPR paper, Work isn’t working: Family work and progression on a low income, by Scott Compton, Henry Parkes and Jamie O’Halloran, will be available for download at https://www.ippr.org/articles/work-isnt-working
Advance copies of the report are available under embargo on request
Throughout the report, child poverty refers to children living in households with income below 60 per cent of median household income after housing costs, in line with standard DWP/HBAI measures.
Statistics on child poverty come from IPPR analysis of DWP’s -households below average income data for 2026.
Transitional analysis uses data from Understanding Society, a large and representative household panel survey. Our data covers 2012 to early 2020 prior to the pandemic. We pool observations across the full period, treating transitions into and out of poverty as a single combined sample regardless of the calendar year in which they occurred.
IPPR (the Institute for Public Policy Research) is the UK’s most influential think tank, with alumni in Downing Street, the cabinet and parliament. We are the practical ideas factory behind many of the current government’s flagship policies, including changes to fiscal rules, the creation of a National Wealth Fund, GB Energy, devolution, and reforms to the NHS. As an independent charity working towards a fairer, greener, and more prosperous society, we have spent almost 40 years creating tangible progressive change - turning bold ideas into common sense realities. www.ippr.org
Action for Children protects and supports vulnerable children and young people by providing practical and emotional care and support, ensuring their voices are heard and campaigning to bring lasting improvements to their lives. With 342 services in local communities across the UK, in schools and online, in 2024/2025 we helped 551,400 children, young people, and families. actionforchildren.org.uk