Inequality · England · 2022–2024

England’s most deprived areas face about 20 fewer years in good health.

Healthy life expectancy in England’s most deprived areas is 19.4 years lower for men and 20.3 years lower for women than in the least deprived areas, using 2022–2024 estimates.

Priority (proposed): Narrow avoidable gaps in health, resources, opportunity and access. What would change it →

Evidence last reviewed 3 October 2026

Overview

The short version

Three key measures

  • How many fewer years in good health in the most deprived areas?

    19.4 / 20.3years (men / women)

    Healthy life expectancy at birth, most deprived tenth of areas against least deprived: men 49.8 against 69.2 years; women 48.2 against 68.5. Area estimates — an association with deprivation, not proof that income alone causes the gap, and not a prediction for any one person.

    England, area deprivation deciles · 2022–2024

    Source: How many fewer years in good health in the most deprived areas?

    Official statistic · ONS, Healthy life expectancy by national area deprivation, England and Wales: between 2013 to 2015 and 2022 to 2024

    Health and place →
  • How many children live in relative poverty after housing costs?

    27.4%

    4.0 million children, 2024–25: below 60% of median income after housing costs. 13% of children were in deep material poverty (lacking at least four of thirteen essentials).

    United Kingdom · 2024–25

    Source: How many children live in relative poverty after housing costs?

    Official statistic · DWP, Households Below Average Income: FYE 1995 to FYE 2025

    Who cannot afford essentials →
  • How much of the wealth do the richest tenth hold?

    40.7%

    The poorer half of households hold about 10%. UK Facts calculation from ONS aggregates (April 2020 to March 2022 (Round 8)). The survey’s accreditation was suspended on 13 June 2025.

    Great Britain · 2020–22

    Source: How much of the wealth do the richest tenth hold?

    Site calculation · ONS, Household total wealth in Great Britain

    Who owns the wealth →
Who feels this most?

Deep material poverty means lacking at least four of thirteen everyday essentials. In FYE, 1.9 million children (13%) were in deep material poverty, against 14% the year before — a change DWP says is not statistically significant.

Health and place

How long can people expect to live in good health, by area?

Healthy life expectancy differs sharply by deprivation

Healthy life expectancy at birth in the least deprived tenth of areas (filled dot) and the most deprived tenth (open dot), England, 2022 to 2024.

England · 2022 to 2024
Least deprived tenth of areasMost deprived tenth
  • Men69.2 yrs
  • Women68.5 yrs

Axis runs from 40 to 80 years to show the gap; it does not start at zero.

People in the least deprived areas can expect about 69.2 (men) and 68.5 (women) years in good health; in the most deprived, about 49.8 and 48.2. Total life expectancy differs by about 10 years for men and 8 for women, so the gap in healthy years is roughly twice the gap in lifespan. ONS describes the change since 2019–21 as a modest, uncertain increase. These are associations, not proof that income alone causes the gap.

England · 2022 to 2024 · Official statistics

Sources, definitions and data — Healthy life expectancy differs sharply by deprivation
Geography:
England — Residents, by Index of Multiple Deprivation decile of their small area
Measure:
Years in good health
Period:
2022 to 2024
Status:
Official statistics
Calculation:
As published. Gap = least deprived minus most deprived decile.
Compare with:
Slope index of inequality across all ten deciles: 19.3 years (men), 20.1 (women)
Not included / breaks:
Compares areas, not individuals: a person on a low income in a wealthy area counts in the least deprived decile. Deprivation covers income, employment, education, health, crime, housing and environment.

Source: ONS, Healthy life expectancy by national area deprivation, England and Wales: between 2013 to 2015 and 2022 to 2024 (released 15 April 2026). Chart INEQ-01.

View the data as a table
GroupLeast deprivedMost deprivedGap (years)
Men69.249.819.4
Women68.548.220.3

Scroll the table sideways to see every column.

Who feels this most?

Who cannot afford essentials

Who goes without enough food?

About 24% of children in low-income households live with food insecurity

People in households with low or very low food security, by group, United Kingdom, financial years. Low income = below 60% of median after housing costs.

United Kingdom · 2019–20 to 2024–25

1996–2026 displayed window · observations only. Shading marks years outside the displayed record.

Per cent of each groupNo observations shown0%10%20%30%40%20002010202024.2%19.4%9.0%
Food insecurity is two to three times as common among people on low incomes as in the population as a whole. It rose sharply in 2022–23 and 2023–24, when food and energy prices jumped, and fell back in 2024–25 to 9% of everyone and 24.2% of children in low-income households. The series began in 2019–20 and has a break at 2021–22, so it cannot show a long-run trend.

United Kingdom · 2019–20 to 2024–25 · Official statistics

Sources, definitions and data — About 24% of children in low-income households live with food insecurity
Geography:
United Kingdom — People in private households (Family Resources Survey)
Measure:
Per cent of each group
Period:
2019–20 to 2024–25
Status:
Official statistics
Calculation:
As published by DWP.
Compare with:
Everyone in the UK
Not included / breaks:
Break in series: from 2021/22 DWP integrates benefit administrative records into the survey. Figures either side are not directly comparable.

Source: DWP, Households Below Average Income: FYE 1995 to FYE 2025 (released 26 March 2026). Chart INEQ-02.

View the data as a table
YearEveryoneLow incomeChildren in low income
2019–207.8%20.2%25.7%
2020–216.4%18.1%22.3%
2021–227%17.2%22.3%
2022–2310.9%24.4%29.6%
2023–2411.3%23.8%30.3%
2024–259%19.4%24.2%

Scroll the table sideways to see every column.

Tenure matters more than almost anything else: 28.2% of children in social rented homes, 18.6% of children in private rented homes, 9.1% of children in owned outright homes, 3.7% of children in buying with a mortgage homes. And while children in workless families are far more likely to be in deep material poverty (38.1% of those affected, against 13.1% of all children), most children in deep material poverty live in working families.

How the pieces connect

Mechanisms to investigate, not measured effects

  1. 1

    Income and work

    Pay, hours and benefits set income before housing costs. Source: DWP HBAI.

  2. 2

    Housing costs

    Rent or mortgage comes off the top; renters on low incomes are hit hardest. Source: DWP HBAI after-housing-cost measures.

    More on this step
  3. 3

    Savings and assets

    A financial buffer decides whether a shock becomes hardship. Source: ONS Wealth in Great Britain.

    More on this step
  4. 4

    Health

    Hardship, stress, housing quality and work all relate to health; the direction runs both ways. Source: ONS healthy life expectancy by deprivation.

    More on this step

Each link is supported by the source named; the diagram does not imply how strong each effect is, and causes run in both directions.

Shareable visual summary

Visual summary

Image current

Every figure printed in the image matches today’s record, and its primary sources have been checked.

England’s most deprived areas face about 20 fewer years in good health.

Healthy life expectancy at birth, 2022 to 2024: men 49.8 years vs 69.2 years; women 48.2 years vs 68.5 years, most vs least deprived area deciles. Endpoint gaps, not the slope index of inequality.

Healthy life expectancy at birth, England, 2022 to 2024

GroupMost deprived 10%Least deprived 10%Gap
Men49.8 years69.2 years19.4 years
Women48.2 years68.5 years20.3 years

Area deciles, not individuals; not a prediction of when any one person becomes ill.

England, 2022 to 2024. Source: ONS, Health state life expectancies by deprivation.
Download image (PNG, 1024 by 1536 pixels)

England’s most deprived areas face about 20 fewer years in good health.

Inequality infographic: healthy life expectancy in England, 2022–24 — men 49.8 vs 69.2 years, women 48.2 vs 68.5, most vs least deprived areas.
Text and data version

England’s most deprived areas face about 20 fewer years in good health. Healthy life expectancy at birth, 2022 to 2024: men 49.8 years vs 69.2 years; women 48.2 years vs 68.5 years, most vs least deprived area deciles. Endpoint gaps, not the slope index of inequality.

Records behind this visual summary
MeasureValuePeriodGeographyTypeSource
Men, most deprived decile49.8 years2022 to 2024Englandsurvey estimateONS, Healthy life expectancy by national area deprivation, England and Wales: between 2013 to 2015 and 2022 to 2024
Men, least deprived decile69.2 years2022 to 2024Englandsurvey estimateONS, Healthy life expectancy by national area deprivation, England and Wales: between 2013 to 2015 and 2022 to 2024
Women, most deprived decile48.2 years2022 to 2024Englandsurvey estimateONS, Healthy life expectancy by national area deprivation, England and Wales: between 2013 to 2015 and 2022 to 2024
Women, least deprived decile68.5 years2022 to 2024Englandsurvey estimateONS, Healthy life expectancy by national area deprivation, England and Wales: between 2013 to 2015 and 2022 to 2024
Endpoint gap, men (least − most deprived decile)Calculation: least deprived decile − most deprived decile (rounded published values); not the slope index of inequality19.4 years2022 to 2024Englandderived calculationONS, Healthy life expectancy by national area deprivation, England and Wales: between 2013 to 2015 and 2022 to 2024
Endpoint gap, women (least − most deprived decile)Calculation: least deprived decile − most deprived decile (rounded published values); not the slope index of inequality20.3 years2022 to 2024Englandderived calculationONS, Healthy life expectancy by national area deprivation, England and Wales: between 2013 to 2015 and 2022 to 2024

Image description: Inequality infographic: healthy life expectancy in England, 2022–24 — men 49.8 vs 69.2 years, women 48.2 vs 68.5, most vs least deprived areas.

All visual summaries, their source records and their publication state are listed on Shareable visuals.

Go deeper

Evidence → choices → outcomes

What could improve it?

Less material hardship among families in the UK, and narrower gaps in healthy life between England’s most and least deprived areas.

These options link to their national assessment, including funding, delivery constraints and remaining uncertainties.

  • Assessed option · provisional

    Give families in temporary accommodation a settled home

    A buy/build/lease comparison against temporary accommodation, and awards tied to lettings.

    9/10 criteria scored

    Coverage of the appraisal, not an impact score.

    Delivery: Amber

    Whole-life costs incomplete

    Evidence and delivery constraints

    US subsidy evidence supports housing stability but does not establish UK acquisition/build effects or local value for money.

    Define families and locations; compare acquisition, lease and new build; inspect standards; secure lettings and tenancy support.

  • Assessed option · provisional

    A child-poverty target and essentials test

    7/10 criteria scored

    Coverage of the appraisal, not an impact score.

    Delivery: Amber

    Whole-life costs incomplete

    Evidence and delivery constraints

    A target does not itself reduce poverty. Modelled effects of a strategy do not establish the effect of the benchmark.

    Define poverty/essentials measures, then compare specific benefit, housing-cost and service changes; assign accountability.

  • Assessed option · provisional

    Property and land tax reform

    8/10 criteria scored

    Coverage of the appraisal, not an impact score.

    Delivery: Amber

    Whole-life costs incomplete

    Evidence and delivery constraints

    Modelled designs exist; exact tax base, jurisdiction and transition are not specified.

    Separate council-tax revaluation, land/property tax and transaction-tax changes; model losers and deferral options.

  • Assessed option · provisional

    Make effective smoking treatment reach more people

    Expand access, measure additional quits and track who is still missing out.

    9/10 criteria scored

    Coverage of the appraisal, not an impact score.

    Delivery: Amber

    Whole-life costs incomplete

    Evidence and delivery constraints

    NICE supports effective treatment combinations. Evidence is stronger for treatment than for this exact outreach/access increment; no national impact total is claimed.

    Verify service gap and current funding; cost adviser time, treatment, referral and follow-up. Measure sustained quits and inequalities, with adverse effects monitored. Proposed owners: public-health commissioners and health providers.

  • Assessed option · provisional

    Close the early-language support gap

    Reach eligible children with evidence-based language support.

    9/10 criteria scored

    Coverage of the appraisal, not an impact score.

    Delivery: Amber

    Whole-life costs incomplete

    Evidence and delivery constraints

    EEF effectiveness trial supports language outcomes; the transfer to a gap-closing delivery programme and persistence of effects need checking. Programme availability alone is not a verified access gap.

    Audit reach, eligibility and delivery fidelity; cost trained staff, release time, screening, materials and follow-up. Protect SEND provision. Measure language outcomes and access. Proposed owners: schools, education bodies and councils as appropriate.

This domain in the UK SWOT →UK National Action Plan →

How we assessed these options

What would it take to improve this?

What would move the needle?

The outcome we want: Less material hardship among families in the UK, and narrower gaps in healthy life between England’s most and least deprived areas.

The main constraint: Different gaps need different levers held by different bodies — DWP and HM Treasury for income, DfE, DHSC and councils for early years, DESNZ, councils and landlords for cold homes — and the health gains arrive over decades, so recurring money and coordination bind more than any single decision.

Constraint type: money, coordination, workforce.

The options on the table

What is funded now, and the changes assessed against it — the current baseline and the alternatives, before the position today and the actions.

Provisional single-reviewer assessments from the 6 October 2026 review; not approved business cases, and not government policy.

Assessed with another page as home

These options also bear on this topic. The full assessment sits on the home page named under each.

  • Settled homes for families in temporary accommodationDelivery RAG: Amber

    Home: Housing.

    Funded now
    The Social and Affordable Homes Programme 2026–2036 (£39bn envelope) made its first allocations on 25 August 2026 (£9.58bn to 33 strategic partners outside London; more than £16bn outside London and around £5bn in London still to allocate), under the Burnham government; its aim is supply, especially social rent, with temporary accommodation a stated use only for limited acquisitions. The dedicated temporary-accommodation capital route is the separate Local Authority Housing Fund, not assessed here. Linking awards to temporary-accommodation outcomes is a UK Facts proposal.
    The change assessed
    A buy/build/lease comparison against temporary accommodation, and awards tied to lettings.

    Range if completed: 19.0–22.0 out of 30 (equal weights; not yet assessed: incremental affordability (Co))

  • A child-poverty target and essentials testDelivery RAG: Amber

    Home: Benefits.

    Funded now
    Not yet stated in the record.
    The change assessed
    Not yet defined.

    Range if completed: 12.0–21.0 out of 30 (equal weights; not yet assessed: increment beyond baseline (Ad), expected incremental benefit (Bn), incremental affordability (Co))

  • Property and land tax reformDelivery RAG: Amber

    Home: Revenue options.

    Funded now
    Not yet stated in the record.
    The change assessed
    Not yet defined.

    Range if completed: 13.0–19.0 out of 30 (equal weights; not yet assessed: expected incremental benefit (Bn), incremental affordability (Co))

  • Targeted access to smoking treatmentDelivery RAG: Amber

    Home: Health.

    Funded now
    Funded baseline: the 2026–27 public health grant ring-fences £152.8m for smoking cessation (absorbing the extra £70m a year and Swap to Stop); the generational age-of-sale law starts on 1 January 2027; NHS trusts offer tobacco dependence treatment. Targeted outreach to routine and manual workers is a UK Facts proposal, not government policy.
    The change assessed
    Expand access to established behavioural support plus suitable cessation treatment for a defined underserved adult group; cardiovascular prevention is a separate, unscored option.

    Range if completed: 21.0–24.0 out of 30 (equal weights; not yet assessed: incremental affordability (Co))

  • Close early-language support delivery gapsDelivery RAG: Amber

    Home: Education.

    Funded now
    DfE funds NELI free for every state-funded school with a reception class, confirmed to academic year 2028–29 subject to spending rounds (reception improvement offer, updated July 2026); The proposal is protected teaching-assistant time to deliver all 20 weeks — not a replacement for statutory SEND assessment.
    The change assessed
    Deliver the evaluated Reception NELI model to eligible children currently missing suitable support, with protected trained-staff time.

    Range if completed: 20.0–23.0 out of 30 (equal weights; not yet assessed: incremental affordability (Co))

  • Timely workplace adjustments for disabled workersDelivery RAG: Amber

    Home: Jobs & pay.

    Funded now
    Funded baseline: Access to Work (£320.7m on provision in 2024–25) and 480 extra case managers and caseworkers to clear the backlog by September 2027 (May 2026; restated 2 October 2026). A defined decision standard for in-work cases, tested with a comparison, is a UK Facts proposal, not government policy.
    The change assessed
    Test a defined assessment-to-adjustment improvement for workers facing verified delays, distinguishing employer duties from public support.

    Range if completed: 16.0–22.0 out of 30 (equal weights; not yet assessed: expected incremental benefit (Bn), incremental affordability (Co))

Alternatives already on record: 22 options listed under the points in the position today (15 without an action record), and 4 earlier options under other options compared. They have not been scored in the review.

The position today

  • What we can build on (2)
  • What is holding us back (3)Healthy life expectancy in England’s most deprived areas is 19.4 years lower for men and 20.3 years lower for women than in the least deprived. (2022–2024 · England)
  • What could improve things (1)Early-years help where access is weakest, a transparent test of whether benefits cover essentials and warmer homes for low-income households act on different parts of hardship, at different speeds.
  • What could make it worse (1)

Which quadrant a point sits in is our analytical judgement, not a statistical category. Each point says whether it is a measured fact, our synthesis or a risk.

What we can build on Strengths

  • The two-child limit was removed from 6 April 2026; the Child Poverty Strategy (December 2025, Starmer government; still published and updated on 18 August 2026) projects its measures will lift 550,000 children out of relative low income by the final year of the Parliament, 450,000 of them from removing the limit — modelled, not yet observed.

    Measured factConfidence: High· From 6 April 2026; projections to 2030–31· Great Britain

    Source: legislation.gov.uk, Universal Credit (Removal of Two Child Limit) Act 2026 (c. 13) (Section 3(4)); HM Government, Our Children, Our Future: Tackling Child Poverty (Executive summary; Table 1)

    Options assessed against this point: A child-poverty target and essentials test (Amber delivery RAG)

    What government has committed to

    Legislation: The two-child limit in Universal Credit was removed from 6 April 2026 by the Universal Credit (Removal of Two Child Limit) Act 2026. The Child Poverty Strategy (December 2025) says its measures will lift 550,000 children out of relative low income after housing costs by the end of the Parliament, 450,000 of them from removing the limit — a modelled projection.

    Who and when:
    Starmer government (to July 2026), 6 April 2026.
    Since 20 July 2026:
    Kept by the Burnham government. Re-stated under Burnham: DfE (1 Sep 2026) cites "the government's work to lift over a half a million children out of poverty"; Minister for Women and Equalities (9 Sep 2026) cites "lifting the two-child limit". Note: DWP's July 2026 projection (3.6 million children AHC in FYE 2030, 400,000 fewer than FYE 2025) measures change over time, not the strategy's impact against no action — the two figures are not comparable. Source: DfE, Breathing space for families as government eases school costs (Para 2: free school meals for 3 million+ children on UC; "government's work to lift over a half a million children out of poverty").
    Source:
    legislation.gov.uk, Universal Credit (Removal of Two Child Limit) Act 2026, section 3 (Section 3(4): "Sections 1 and 2 come into force on 6 April 2026")

    Checked 4 October 2026. A commitment is not delivery.

    Options (3)
    • ShortlistedSet an explicit test for whether benefits cover essentials

      An independent process would recommend minimum rates so families' incomes cover essentials.

      Who: DWP; HM Treasury; an independent advisory body · Evidence: Untested proposal · Status: External proposal

      Source: Joseph Rowntree Foundation, Independent process to ensure Universal Credit covers essential costs (briefing) (Section 1 Introduction: "implement an independent, evidence-based advisory process to recommend minimum rates")

    • Benefit adequacy and take-up for families with children

      Keeps the removal of the limit and raises take-up, so modelled gains become observed income.

      Who: DWP; HM Treasury · Evidence: Modelled scenario · Status: Established · Works through Benefits: Keeps the removal of the limit and raises take-up, so modelled gains become observed income.

      Source: HM Government, Our Children, Our Future: Tackling Child Poverty (Foreword/Executive summary: "lift 550,000 children out of relative low income"; "By scrapping the two child limit, we will lift 450,000 children out of poverty")

    • Monitor the strategy's outcomes against its own baseline and publish yearly

      Tests whether the modelled 550,000 appears in HBAI outturn.

      Who: Cabinet Office Child Poverty Unit; DWP · Evidence: Observational analysis · Status: Established

      Source: HM Government, Child Poverty Strategy (collection) (Monitoring and evaluation section (M&E framework Dec 2025; baseline report July/Aug 2026))

  • There is strong UK evidence on early-years services: access to a 2000s Sure Start centre raised GCSE results and cut hospital admissions by age 15.

    Measured factConfidence: Moderate· Cohorts born about 1990–2007; outcomes to age 16· England

    Source: Institute for Fiscal Studies, The short- and medium-term effects of Sure Start on children’s outcomes (Executive summary pp.6–10; Table ES.1)

    Options assessed against this point: Family hubs built on Sure Start features (Amber delivery RAG)

    What government has committed to

    Funding: Best Start Family Hubs are being rolled out across England. On 30 September 2026 the government said the Healthy Babies programme will be expanded to every local authority, "based on the Sure Start principles", at more than 1,000 hubs by 2028.

    Who and when:
    Burnham government (from 20 July 2026), 30 September 2026.
    Since 20 July 2026:
    Made by the current government. Expanded under Burnham (Yvette Cooper, 30 Sep 2026).
    Source:
    DHSC / DfE, Support for families and babies rolled out to all family hubs (Healthy Babies programme expanded to all local authorities "based on the Sure Start principles"; "more than 1,000 hubs by 2028")

    Checked 4 October 2026. A commitment is not delivery.

    Options (3)

What is holding us back Weaknesses

What could improve things Opportunities

What could make it worse Threats

The actions worth examining

Our shortlist for this page. Research quality, policy status, cost and funding are judged separately; none of these is government policy unless its status says so.Our shortlist. None is government policy unless its status says so.

  1. Rebuild integrated early-years help where access is weakest — programme funding exists; project allocation unconfirmed
  2. Set an explicit test for whether benefits cover essentials — not yet costed / funding not identified
  3. Fix cold and inefficient homes with quality-assured work — programme funding exists; project allocation unconfirmed
  • Action 1A13Policy status: funded programme

    Rebuild integrated early-years help where access is weakest

    Provide accessible, integrated health, parenting and early-education support for young children, with outreach, in areas where access is weakest.

    Assessment (draft, 6 October review)

    Who decides:
    DfE, DHSC and councils (England)
    Evidence:
    Experimental or quasi-experimental evaluation. A strong quasi-experimental evaluation of the 2000s programme; transfer to today’s services is uncertain.
    Expected effect:
    +0.9 percentage points (about 2%): five GCSEs at A*–C (or equivalent) at 16 (England). 2000s Sure Start, not today’s family hubs. 1 more result in “What it takes”.
    Cost and funding

    Not yet costed

    Funding: Programme funding exists; project allocation unconfirmed

    Why it is shortlisted here: Gaps in development open before school; integrated early-years help has the strongest UK evaluation of the options here, though today’s services differ from 2000s Sure Start.

    What it takes
    The problem

    The attainment gap opens before school, and integrated early-years services have thinned out in many areas.

    Who is affected, and where

    Children under five and their families in areas with weak access, in England. Territory: England. Sure Start was an England programme; devolved nations run separate early-years services.

    Policy status

    A funded programme already exists. Best Start Family Hubs are being rolled out to every local authority in England from April 2026, “backed by over £500 million”, with up to 1,000 hubs by the end of 2028 (DfE, July 2025); by March 2026 the stated backing was £900m over three years, including £200m for Healthy Babies services, and on 30 September 2026 the Burnham government said the Healthy Babies programme would reach every hub. They are not automatically equivalent to the 2000s Sure Start centres that were evaluated. The proposal is to hold the hubs to the features that were tested, start where access is weakest, and phase the roll-out so it can be evaluated.

    The evidence
    What the research found:
    Five A*–C GCSEs up 0.9 percentage points; hospital admissions down 8.5% by age 15 (up 10% at age 1); no significant effect on EHC plans; more cautions by 16. Central appraisal: £2.7bn cost per cohort against £5.5bn discounted benefits (£2.4bn to government), 2023–24 prices.
    Evaluated on:
    Children in England with access to a Sure Start centre, cohorts born around 1990–2007; England, 1999–2010 roll-out
    Transfer to this case:
    Today’s family hubs differ in services, funding and staffing from 2000s Sure Start.
    Our recommendation (separate from the research):
    Specify the service mix and outreach first, then fund it where access is weakest, and evaluate cohorts rather than claiming the old results.
    Strongest counter-evidence:
    Updated methods removed an earlier fall in EHC plans; crime results are mixed (more cautions); benefits are largely modelled lifetime earnings. Wales’s Flying Start raised service contact but found no measurable difference in child development by about age three.
    Effects on record
    • Five GCSEs at A*–C (or equivalent) at 16: +0.9 percentage points (about 2%) (children without access, before and after centres opened; cohorts born around 1990–2003; quasi-experimental; method update changed some earlier findings). evaluated, moderate confidence; England. 2000s Sure Start, not today’s family hubs.
    • Hospital admissions by age 15: −8.5% by age 15 (areas with fewer centres per child; cohorts born 1990s–2000s; admissions rose 10% at age 1 before falling). evaluated, moderate confidence; England. Not a cashable NHS saving.
    • Criminal record by age 16: A mixed effect; size not established. evaluated, moderate confidence; England. More young people had a criminal record by 16, driven by an 11% rise in cautions; a fall in convictions was not significant. A trade-off to watch, not a benefit.
    Cost and funding

    Cost completeness: Published programme envelope; project costs still needed. Funding: Programme funding exists; project allocation unconfirmed.

    • Integrated early-years service package and workforce (recurring spending; paid by central government, councils, NHS): Not yet costed. The IFS appraisal of 2000s Sure Start is a benchmark, not today’s rollout price; see the separate appraisal chart.
    • Best Start Family Hubs roll-out (programme envelope) (recurring spending; paid by central government): at least £500m in total, Announced 6 July 2025 (“over £500 million”), hubs in every local authority from April 2026 to the end of 2028; fiscal years and price basis not stated in the announcement., price basis not stated by the source. A programme envelope for the hubs, not a costed package of the Sure Start features the evaluation tested; an individual area’s offer is funded only once its allocation and specification are confirmed.
    • Best Start Family Hubs: “over £500 million” to the end of 2028: amount not established — not committed (programme envelope, not a project award). Recorded as “at least £500m” in the cost record; the amount is not repeated here to avoid implying a precise figure.
    Who pays:
    Central government and councils; the NHS for health visiting.
    Financing proposed:
    Best Start Family Hubs allocations (a programme envelope of over £500m) and public-health and health-visiting budgets; extra coverage or staffing beyond the hubs needs a new allocation or explicit displacement.
    Gap remaining:
    Unknown until the service package is specified and costed. Lifetime benefits cannot fund upfront delivery.
    What delivery needs
    Skills:
    Early-years practitioners, health visitors, outreach workers.
    Operational capacity:
    Local commissioning.
    Infrastructure:
    Accessible buildings.
    Permissions:
    None.
    Law:
    None.
    Public consent:
    Families’ trust and use of services.
    First step and stages

    First step: Map service access and specify the offer before choosing buildings or branding. (owner: Councils with DfE)

    1. Map access and specify services — Councils (proposed stage, not an official timetable)
    2. Build provision and track reach — Councils and NHS (proposed stage, not an official timetable)
    3. Evaluate cohorts over years — DfE with researchers (proposed stage, not an official timetable)

    Depends on: Early-years workforce

    Trade-offs
    Who gains and who loses:
    Largest gains for disadvantaged children; costs fall now, benefits mostly later and partly to other budgets.
    What else the money or effort could do:
    Funds and staff are not available for childcare places or other services.
    Strongest counterargument:
    Effects are modest per child and arrive slowly; diluted provision may not reproduce them.
    Risks:
    Workforce shortages and attributing every childhood outcome to one programme.
    How we would judge it
    Baseline:
    Good level of development at age five (DfE EYFS profile).
    Leading indicator:
    Reach among families in target areas.
    Outcome:
    Child development, later attainment and admissions, kept separate from projections.
    Continue, adapt or stop:
    Expand where reach and early outcomes improve; review where reach is low.
    Earlier option on this page

    This card replaces the option “Early years services in disadvantaged areas” (operating: Family hubs programme operating in some council areas.). Its evidence: IFS evaluations of Sure Start found fewer hospitalisations among children aged 11–15 in areas with centres, with the largest benefits in the most disadvantaged areas. Effects on adult health are not yet observable. IFS, The health impacts of Sure Start (Cattan, Conti, Farquharson, Ginja, Pecher, 2021)

    Sources

    Source published 22 May 2025 (IFS); December 2020 (Marmot); evidence reviewed 2026-10-04. Reconsider if: An evaluation of family hubs or Best Start services; A change in early-years funding.

    Also on: Education, Health — one shared record, so its cost is counted once.

  • Action 2A16Policy status: external proposal

    Set an explicit test for whether benefits cover essentials

    An independent advisory body, on the model of the Low Pay Commission, would publish evidence each year on the cost of essentials for set household types and advise on the standard allowance and deductions; ministers and Parliament would still decide.

    Assessment (draft, 6 October review)

    Who decides:
    DWP and HM Treasury (rates and remit), Parliament (any legislation) (Great Britain)
    Evidence:
    Untested proposal. A policy proposal drawing on UK and overseas advisory bodies; no evaluation shows that such a body changes hardship, and the essentials estimates are the proposers’ own modelling.
    Expected effect:
    Direction plausible; size not established.
    Cost and funding

    Not yet costed

    Funding: Not yet costed / funding not identified

    Why it is shortlisted here: Cash acts fastest on material hardship; a published test of whether benefits cover essentials would make the adequacy choice visible and costed.

    Builds on the option Benefit adequacy and take-up for families with children compared below.

    What it takes
    The problem

    No official benchmark says what the basic rate of Universal Credit is meant to cover; it is set by ministers at the annual uprating review and, for 2026–2030, by a fixed path in legislation, without a published comparison with the cost of essentials.

    Who is affected, and where

    Households on Universal Credit in Great Britain, and people entitled to it who do not claim. Territory: Great Britain. Universal Credit is legislated for Great Britain; Northern Ireland runs a parallel system and Scotland pays some devolved benefits on top (for example the Scottish Child Payment). Equivalent decisions there are not assessed here.

    Policy status

    Proposed by researchers or others, not government policy. A Joseph Rowntree Foundation proposal, not government policy. The Universal Credit Act 2025 (Royal Assent 3 September 2025) already sets the standard allowance on a path that ends 4.8% above inflation-only uprating by 2029–30; that is a fixed path chosen by Parliament, not a test of adequacy, and it is the baseline any option must be compared with.

    The evidence
    What the research found:
    JRF reports that the standard allowance from April 2026 (about £98 a week for a single person aged 25 or over, £154 for a couple) is below its destitution thresholds (£105 and £160) and below the JRF/Trussell estimate of essentials (£120 and £205). It proposes an independent advisory process but does not cost the body or any change in rates.
    Evaluated on:
    Not evaluated. JRF compares 2026–27 Universal Credit rates with its own and Trussell’s estimates of essential costs for a single adult and a couple.; United Kingdom, 2026–27 rates
    Transfer to this case:
    The Low Pay Commission and New Zealand’s advisory group answer different questions; their record is not evidence that a benefits body would reduce hardship.
    Our recommendation (separate from the research):
    Specify the essentials basket, household types and decision rule first, then publish a distributional costing of named options against the 2025 Act baseline. UK Facts does not set its own adequacy threshold; the JRF/Trussell figures are their estimates.
    Strongest counter-evidence:
    An essentials basket is a normative choice, and a published benchmark creates pressure for large recurring spending that must be financed by tax, cuts elsewhere or borrowing; higher basic rates also change work incentives at the margin. JRF itself does not cost the change.
    Effects on record
    • Material hardship among households on Universal Credit: Direction plausible; size not established. plausible spillover, limited confidence; Great Britain. A benchmark changes nothing unless rates change; how much hardship would fall depends on the option, take-up and housing costs, none of which has been modelled here.
    • Recurring benefit spending: A cost or harm; size not established. plausible spillover, limited confidence; Great Britain. Shown as a trade-off, not a benefit. The size depends on the option and has not been costed on the current baseline.
    Cost and funding

    Cost completeness: Not yet costed. Funding: Not yet costed / funding not identified.

    • An independent advisory body on benefit adequacy (secretariat, research, consultation) (administration; paid by central government): Not yet costed. JRF does not cost the body. Comparable bodies (the Low Pay Commission, pay review bodies) are small, but their budgets are not a price for this one.
    • Any change in Universal Credit rates or deductions following the benchmark (household transfer; paid by central government): Not yet costed. Must be modelled on the current caseload, take-up and interactions with housing support, against the Universal Credit Act 2025 baseline. No older campaign price tag is reused.
    Who pays:
    Taxpayers, through higher benefit spending (or cuts elsewhere, or borrowing); DWP for the small administrative cost of an advisory body.
    Financing proposed:
    None. Any rate change would need a recurring tax, spending or borrowing decision matched to a costing on the current caseload and take-up.
    Gap remaining:
    Unknown: it depends entirely on the option chosen. The advisory body is a small administrative cost; rate changes could be large and recurring.
    What delivery needs
    Skills:
    Analysts able to price essentials by household type.
    Operational capacity:
    DWP and HM Treasury modelling of caseloads, take-up and interactions with housing support.
    Infrastructure:
    None beyond existing payment systems.
    Permissions:
    None.
    Law:
    A statutory body or duty would need legislation; a non-statutory panel would not.
    Public consent:
    Agreement on what counts as an essential; public attitudes to benefit spending.
    First step and stages

    First step: Specify the essentials basket, household types and the exact options to cost against the 2025 Act baseline. (owner: DWP with HM Treasury)

    1. Consult on remit, basket and household types — DWP (proposed stage, not an official timetable)
    2. Set up the advisory body and publish a first benchmark — DWP; Parliament if statutory (proposed stage, not an official timetable)
    3. Annual report, with a published government response at the uprating review — Advisory body; DWP ministers (proposed stage, not an official timetable)

    Depends on: A25: higher rates help only people who claim; Housing support (Local Housing Allowance) interacts with any change

    Trade-offs
    Who gains and who loses:
    Gains for households on Universal Credit, largest for those with the least other income; costs fall on taxpayers or on whatever spending is cut. Rates for pensioners and disability benefits are outside this test unless its remit is widened.
    What else the money or effort could do:
    Money for higher rates is not available for services, employment support or debt reduction.
    Strongest counterargument:
    A benchmark turns a political judgement into an apparently technical one and builds in pressure for spending that may not be affordable; uprating already follows a legislated path to 2029–30.
    Risks:
    Basket choices contested as arbitrary; recommendations ignored, eroding trust; higher rates absorbed by rents where housing support is capped.
    How we would judge it
    Baseline:
    Deep material poverty and food insecurity among people in low-income households (DWP Households Below Average Income).
    Leading indicator:
    The published gap between each household type’s rate and the benchmark.
    Outcome:
    Material hardship, food insecurity and income after essential costs; employment and caseload effects alongside.
    Continue, adapt or stop:
    Review the remit if the benchmark is not used in uprating decisions, or if hardship does not change after rates move towards it.
    Sources

    Source published 30 January 2026 (JRF); 2025 (Universal Credit Act); evidence reviewed 2026-10-04. Reconsider if: A government response to an independent adequacy proposal; The next uprating review; A costed JRF/Trussell essentials-guarantee update.

    Also on: Inflation, Benefits — one shared record, so its cost is counted once.

  • Action 3A18Policy status: funded programme

    Fix cold and inefficient homes with quality-assured work

    Target insulation, heating and ventilation at households in greatest need, with a property survey before work and checks after it.

    The thread: issue, evidence, action

    1. Issue Weakness (Energy): 9.4% of households in England — about 2.36 million — were in fuel poverty. Also: opportunityHow acting here reaches it: Cold, inefficient homes concentrate among low-income households, so quality-assured upgrades reduce the fuel poverty the energy page counts — one of the hardships that widen gaps in health and living standards.
    2. Evidence Households in fuel poverty
    3. Action A18, this action

    Assessment (draft, 6 October review)

    Who decides:
    DESNZ and MHCLG, with councils, landlords and accredited installers (England)
    Evidence:
    Observational analysis. Official before-and-after comparisons show energy savings; the health evidence is an older review with uncertain effects.
    Expected effect:
    −17% median gas use: gas use in homes after solid wall insulation (England and Wales). Observational comparison, mostly from government schemes; savings for cavity and loft insulation are smaller.
    Cost and funding

    £4.42bn in total, 2025–26 to 2029–30, price basis not stated by the source; 1 further cost line, some not yet costed

    Funding: Programme funding exists; project allocation unconfirmed

    Why it is shortlisted here: Cold, inefficient homes concentrate among low-income households; a funded programme exists and the gain depends on targeting and quality.

    What it takes
    The problem

    Cold, inefficient homes push up bills and can harm health, and poor installations can make homes worse.

    Who is affected, and where

    Low-income and fuel-poor households in inefficient homes, in England. Territory: England. Warm Homes Plan grants are England-focused; devolved arrangements were to be set out separately; Scotland and Wales run their own schemes.

    Policy status

    A funded programme already exists. The Warm Homes Plan allocates £4,422m of low-income home grants for 2025–26 to 2029–30. The proposal here is targeting by need plus quality assurance, within that programme.

    The evidence
    What the research found:
    Solid wall insulation cut median gas use by 17% in 2024 for measures installed in 2023 (indicative). The Cochrane review found health improvements “are possible”, clearest where homes were inadequately warm.
    Evaluated on:
    Homes with measures installed under government schemes (energy); people in improved homes in 39 studies (health); England and Wales, 2023–24 (energy); several countries to 2012 (health)
    Our recommendation (separate from the research):
    Select homes by need and suitability, fund surveys and post-installation checks, and measure weather-adjusted use and indoor conditions.
    Strongest counter-evidence:
    Savings vary year to year and include households choosing to heat more; health effects are uncertain and the review is old.
    Effects on record
    • Gas use in homes after solid wall insulation: −17% median gas use (similar homes without measures; 2024 savings for measures installed in 2023; indicative; varies year to year and includes households choosing to heat more). evaluated, moderate confidence; England and Wales. Observational comparison, mostly from government schemes; savings for cavity and loft insulation are smaller.
    • General, respiratory and mental health of residents: Direction plausible; size not established. evaluated, limited confidence; Studies in several countries, searched to 2012. The review says improvements “are possible”, clearest where warmth was inadequate; no current UK estimate and no cashable NHS saving.
    • Low-income households counted as fuel poor: Direction plausible; size not established. plausible spillover, limited confidence; England. The fall in the headline count partly follows from the definition. Whether hardship actually falls depends on real bills, heating behaviour and prices, which the count does not measure.
    • Damp and mould after poorly specified or installed insulation: A cost or harm; size not established. plausible spillover, limited confidence; England. This is why A18 pairs grants with a survey before work and checks after it. No national rate of defects is published in the sources we checked.
    Cost and funding

    Cost completeness: Published programme envelope; project costs still needed. Funding: Programme funding exists; project allocation unconfirmed.

    • Warm Homes Plan: low-income home grants (capital; paid by central government): £4.42bn in total, 2025–26 to 2029–30, price basis not stated by the source. Grant line only; the plan’s loans and financial transactions are different kinds of money and are not included. No price basis stated.
    • Property surveys, installation quality checks, remediation and monitoring (recurring spending; paid by central government, landlords, households): Not yet costed. Use surveyed property-level costs; no invented national average.
    • Warm Homes Plan low-income grant allocations: £4.42bn, 2025–26 to 2029–30 — not committed (programme envelope, not a project award). Programme allocation; an individual home or council scheme is funded only once its award is confirmed.
    Who pays:
    Central government grants; landlords under minimum standards; some households’ own contributions.
    Financing proposed:
    Warm Homes Plan low-income grants; landlord duties.
    Gap remaining:
    Unknown for any scheme until surveyed costs, quality assurance and remediation are priced.
    What delivery needs
    Skills:
    Accredited installers and assessors.
    Operational capacity:
    Council delivery teams.
    Infrastructure:
    None beyond the homes.
    Permissions:
    Landlord and occupant agreement.
    Law:
    Private-rented minimum standards via regulations.
    Public consent:
    Disruption to occupants.
    First step and stages

    First step: Select homes by need and building suitability, then secure the award and installer capacity. (owner: Councils with DESNZ)

    1. Survey — Assessors (proposed stage, not an official timetable)
    2. Install and inspect — Accredited installers; councils (proposed stage, not an official timetable)
    3. Monitor over heating seasons — DESNZ and councils (proposed stage, not an official timetable)

    Depends on: Installer workforce; Quality-assurance regime

    Trade-offs
    Who gains and who loses:
    Gains for low-income households in the least efficient homes; landlords bear costs and may pass some on in rents.
    What else the money or effort could do:
    Grant spent here is not available for other energy or housing programmes.
    Strongest counterargument:
    Savings can be smaller than modelled and poor work can cause damp.
    Risks:
    Poor ventilation, workmanship, rent increases and installer scarcity.
    How we would judge it
    Baseline:
    Fuel poverty rate in England (DESNZ).
    Leading indicator:
    Measures installed, defects found and fixed.
    Outcome:
    Weather-adjusted energy use, indoor conditions, bills and appropriate health outcomes.
    Continue, adapt or stop:
    Scale where measured savings hold after inspection; stop measures that cause defects.
    Sources

    Source published March 2026 (Warm Homes Plan); June 2026 (NEED); February 2013 (Cochrane); evidence reviewed 2026-10-04. Reconsider if: Devolved and all-tenure allocations are published; A new UK evaluation of health effects; A new NEED release.

    Also on: Energy, Hampshire — one shared record, so its cost is counted once.

Decision brief

  • For low-income families with a child under five, decide what Universal Credit should cover — and compare it with a home and with early-years help

The leading option set out as a decision someone could take: who decides, who benefits, the best evidence, cost and funding, and the main trade-off. The full research record is one click away.

Decision briefPublic-policy proposalReviewed 2026-10-04

For low-income families with a child under five, decide what Universal Credit should cover — and compare it with a home and with early-years help

Decision required
DWP and the Treasury commission a published test of whether Universal Credit covers essentials for named family types, starting with low-income families with a child under five, and cost the options against today’s legislated rates — beside a social-rent home and integrated early-years help for the same families.
Who and where
Households on Universal Credit in Great Britain with a youngest child under five and little other income; eligible families who do not claim are noted but not reached by a rate change. Applies in: Great Britain.
Accountable body
Department for Work and Pensions with HM Treasury
Intervention
Publish an essentials benchmark for named family types and cost options to close the gap, with a government response at each uprating.
Best evidence, and where it applies
JRF estimates the April 2026 standard allowance (about £98 a week, single adult 25+) is below its destitution line (£105) and its essentials estimate with Trussell (£120). A December 2025 DWP evidence review found regular extra income for low-income families improved some children’s outcomes in large overseas trials, but UK studies found smaller or no effects.Studied in: Illustrative single adults and couples on Universal Credit, UK (2026–27 benefit rates).How closely the comparison transfers to this decision: New Zealand (Welfare Expert Advisory Group) and Australia (Economic Inclusion Advisory Committee) — partial.
Extra cost of this change
Capital: none identified in the brief.Recurring: Independent advisory body or panel (secretariat, research, consultation) — Not yet costed; Any change in Universal Credit rates following the benchmark — Not yet costed.
Funding
Not funded: no funding route identified yet.Committed to this change: none.Possible source, not an award: none identified.Unfunded: Unknown: depends entirely on the option chosen; nothing is allocated.
Savings and wider benefits
Not yet specified: no cashable saving or avoided cost has been costed for this change. Expected outcomes are listed one by one in the research appendix and are never added together or counted as money available.
First 90-day step
Publish the remit, the essentials basket method and the household types (including families with a child under five), with the options to be costed against the 2025 Act path.The proposed first milestone; a 90-day date is not yet specified. Owner: DWP with HM Treasury. Proposed by UK Facts, not an official deadline.
Twelve-month milestone
Not yet specified.Time to a first useful result: A first benchmark and costing could inform the following uprating review; any effect on hardship is visible only in survey data a year or more after rates change.
Outcome, and when to scale or stop
Measure: The published gap between each household type’s award and the benchmark, and whether the government’s uprating response addresses it.Scale if: The benchmark is used in uprating decisions and hardship among the named family types falls relative to the comparison when awards move towards it.Stop if: The benchmark is not used in uprating decisions over successive reviews, or hardship does not change after awards move towards it; then review the remit rather than keep a body that changes nothing.
Main trade-off
A benchmark builds pressure for large recurring spending that must be paid for by tax, cuts or borrowing; the money is then not available for homes or services, which help these families in different ways and over different time horizons.

An editorial proposal by UK Facts for discussion, not government policy. Records: A16 · effects E-A16-HARDSHIP, E-A16-FISCAL · costs C-A16-BODY, C-A16-RATES

Research appendix: study design, effect sizes and limits, alternatives, full costing, international comparisons and how we would know

1.The change, in plain words

For low-income families with a child under five, decide what Universal Credit should cover — and compare it with a home and with early-years help

2.The decision requested

Decision
Commission and publish, before the next uprating review, an essentials benchmark for named household types (starting with a lone parent and a couple each with one child under five, renting) and a distributional costing of two or three named options against the Universal Credit Act 2025 path; and require a published government response at each uprating review.
Accountable institution
Department for Work and Pensions with HM Treasury
Geography
Great Britain
Powers
A non-statutory advisory panel and costing can be set up under existing ministerial powers; a statutory body or duty would need primary legislation; changing rates uses the annual uprating order or primary legislation (the Universal Credit Act 2025 sets a minimum path for the standard allowance to 2029–30).
Delivery partners
Independent experts in household budgets (for example the Minimum Income Standard team at Loughborough University); Office for Budget Responsibility (certifying costings); Social Security Advisory Committee; Scottish Government (interaction with the Scottish Child Payment); Local authorities (housing support and local welfare)

3.Who it is for, and what changes beyond today

Target population
Households on Universal Credit in Great Britain with a youngest child under five and little other income; eligible families who do not claim are noted but not reached by a rate change.
Eligibility
Universal Credit entitlement under current rules. The benchmark’s household types are chosen first; pensioners and disability benefits are outside this test unless the remit is widened.
Scale
A national rate decision once taken, but the first step is bounded: two or three household types and two or three costed options. Caseload numbers come from DWP’s own data when the options are costed; none is invented here.
Baseline
From April 2026 the Universal Credit standard allowance is about £98 a week for a single adult aged 25 or over and £154 for a couple, against JRF destitution thresholds of £105 and £160 and the JRF/Trussell essentials estimate of £120 and £205 (JRF, January 2026). The Universal Credit Act 2025 sets a minimum path for the standard allowance, ending at least 4.8% above inflation-only uprating by 2029–30. The two-child limit on the child element is removed from April 2026, at a forecast cost of £2.4bn in 2026–27 rising to £3.2bn in 2030–31.

Source: Joseph Rowntree Foundation, Independent process to ensure Universal Credit covers essential costs (briefing) (Section 2 (standard allowance against destitution and essentials)); legislation.gov.uk, Universal Credit Act 2025 (c. 22) (Section 1(2) and 1(4)); HM Treasury, Budget 2025 (HC 1492) (Table 1.2 (printed p.22); Box 2.A (printed p.31); para 4.9 (printed p.96))

Change beyond existing law or funding
Rates already rise on a legislated minimum path and the two-child limit is going. What is added is a published test of what the rates are meant to cover for named family types, an independent costing of named options against that path, and a duty on ministers to respond each year. Ministers and Parliament still decide the rates.

4.How it would work

Do: Publish an essentials benchmark for named family types and cost options to close the gap, with a government response at each uprating Changing: a visible gap between Universal Credit and the cost of essentials, so that uprating decisions are made against a stated standard

  • Less material hardship among families on Universal Credit with a young child

    Hypothesis to testEffect record E-A16-HARDSHIP

    Happens only if rates actually move; how much depends on the option, take-up and housing costs. The effect record is a plausible link, not an evaluated effect.

  • Better school readiness and health for the youngest children

    Hypothesis to test

    Large US and Canadian trials of regular payments found modest gains; UK studies found smaller or no effects (DWP rapid evidence review, 2025). Not a forecast for this change.

  • Higher recurring benefit spending (a cost, not a benefit)

    Hypothesis to testEffect record E-A16-FISCAL

    Every year once rates change; size depends on the option and has not been costed on the current baseline.

Outcomes are kept separate and never added into one impact figure.

5.Best evidence

  • Independent process to ensure Universal Credit covers essential costs (briefing)

    Author or institution:
    Joseph Rowntree Foundation (policy briefing; essentials estimate produced with the Trussell Trust)
    Published:
    30 January 2026
    Evaluation period:
    2026–27 benefit rates
    Design:
    Comparison of Universal Credit rates with the proposers’ own destitution and essentials estimates; review of advisory-body models (Low Pay Commission, New Zealand, Australia)
    Sample or population:
    Illustrative single adults and couples on Universal Credit, UK
    Effect and uncertainty:
    Standard allowance below destitution thresholds (£98 against £105 single; £154 against £160 couple) and below the essentials estimate (£120; £205). No effect estimate; no costing of the body or of rate changes.
    Limits:
    An essentials basket is a normative choice by the proposers; it is advocacy-linked analysis, not an evaluation, and does not model families with children or housing costs here.

    Where: Briefing sections 1–3. Affiliation is provenance, not proof of quality.

  • Costs of Child Poverty: a rapid evidence review of the effect of income on child outcomes

    Author or institution:
    Department for Work and Pensions (research by Verian)
    Published:
    5 December 2025
    Evaluation period:
    Journal studies published since 1997 (working papers since 2017), mostly from the US, Canada and Latin America
    Design:
    Rapid evidence review of 35 randomised and quasi-experimental studies of income in pregnancy or childhood
    Sample or population:
    Low-income families with children; five UK studies
    Effect and uncertainty:
    School readiness improved in 5 of 13 studies (pooled large trials imply about 2.8 percentage points more children reaching a good level of development per £1,090 a year); health improved in 5 of 9. Baby bonuses and the UK two-child-limit study showed no school-readiness effect.
    Limits:
    Most studies are from outside the UK; the UK studies were less likely to find effects; payments were regular and sustained, unlike a one-off rise.

    Where: Summary; chapter 1 and 2 conclusions. Affiliation is provenance, not proof of quality.

6.Alternatives, counter-evidence and who loses

Closest feasible alternative
Spend the same money on the other two routes for the same families: social-rent homes that move families out of temporary accommodation (national brief on housing), or integrated early-years help where access is weakest (national brief on early years).
Strongest counter-evidence
UK studies in the DWP review were less likely than overseas trials to find effects of extra income on children’s outcomes, and the UK two-child-limit study found no effect on school readiness. A benchmark also turns a political judgement into an apparently technical one.

Source: Department for Work and Pensions (research by Verian), Costs of Child Poverty: a rapid evidence review of the effect of income on child outcomes (Summary (limitations); school readiness chapter); Joseph Rowntree Foundation, Independent process to ensure Universal Credit covers essential costs (briefing) (Section 3)

Distributional effects
Gains for families on Universal Credit with the least other income; none for eligible non-claimants; some of a rise can be absorbed by rents where housing support is capped. Costs fall on taxpayers or on whatever spending is cut. Pensioners and disabled people outside the remit are not reached.
Main downside
Recurring cost that competes directly with homes and services for the same families, and a benchmark ministers may then decline to meet, which can erode trust.

The options compared, including current policy

  • The proposal

    An essentials benchmark and costed uprating options for families with a child under five (this brief)

    Who is reached
    Every claiming family of the named types; not eligible non-claimants
    Evidence
    Untested proposal; overseas trials show modest child gains from regular income, UK studies weaker
    Likely outcome and timing
    Income gain from the first uprating that moves awards; hardship change measurable after a year or more
    Cost and funding
    Body small but not costed; rate changes potentially large and recurring; nothing allocated
    Main trade-off
    Recurring cost; competes with homes and services
  • Current policy

    Current policy: the legislated standard-allowance path to 2029–30 and removal of the two-child limit from April 2026

    Who is reached
    All Universal Credit claimants; larger families gain most from the two-child change
    Evidence
    Government forecasts 450,000 fewer children in poverty from the two-child change; no essentials test
    Likely outcome and timing
    From April 2026 onwards
    Cost and funding
    Two-child change forecast at £2.4bn in 2026–27 rising to £3.2bn in 2030–31; funded in Budget 2025
    Main trade-off
    No stated standard for what rates should cover
  • Alternative

    Social-rent homes to move families out of temporary accommodation

    Who is reached
    Homeless families in temporary accommodation and on waiting lists in a given area
    Evidence
    See the national decision brief: effects on families are plausible links, not evaluated here
    Likely outcome and timing
    Years: homes must be bought or built
    Cost and funding
    Capital-heavy; programme envelope exists, no project allocation
    Main trade-off
    Helps fewer families, more deeply; slow
  • Alternative

    Integrated early-years help where access is weakest

    Who is reached
    Children under five and parents in areas with weak access who use the service
    Evidence
    See the national decision brief: Sure Start evaluation found fewer hospital admissions and slightly better GCSEs
    Likely outcome and timing
    Use within a year; child outcomes over many years
    Cost and funding
    Programme backing announced; local allocation varies
    Main trade-off
    Reaches families who use services; no immediate cash

7.What other countries or the devolved nations show

Country lesson · New Zealand (Welfare Expert Advisory Group) and Australia (Economic Inclusion Advisory Committee), New Zealand: group mandated in 2018, increases implemented 2019–2022; Australia: committee established 2023

Independent advice on benefit levels in New Zealand and Australia

Evidence: Expert or audit recommendationPartial match: some conditions differ

What was changed
New Zealand: a one-off 11-member expert group reviewed the whole system and recommended benefit rates built from budgets for core spending and minimal participation. Australia: a permanent statutory committee reports on the adequacy of income support at least two weeks before each federal budget. In both, ministers keep the decision.
Study design and population
Described in a UK policy briefing (JRF, January 2026). No evaluation of either body’s effect on hardship was found; the primary New Zealand and Australian documents could not be read in this review. Working-age people on main benefits (New Zealand) and on unemployment and related payments (Australia).
Measured outcome there
No measured effect on hardship. Institutional outcome only: New Zealand implemented the recommended increases in steps between 2019 and 2022; in Australia the government did not fully adopt the 2023 recommended increases, delivered a substantial but smaller uprating and later made selected uplifts short of what the committee advised.
Cost status
Not established for either body or for the rate rises.
What failed or remains uncertain
An advisory body does not guarantee adequacy: Australia shows recommendations can be largely set aside; New Zealand’s rises came alongside other changes, so any effect on hardship cannot be attributed to the group.
Why the UK differs
Universal Credit combines adult, child and housing elements with deductions, and its standard allowance is on a legislated minimum path to 2029–30; the UK has a precedent in the Low Pay Commission, whose remit is pay, not benefits.
First change required here
Specify the basket and household types and require a published government response at each uprating review, so that any gap between advice and decision is visible.

Not a UK forecast: the effect above was measured in that place and population. Source: Joseph Rowntree Foundation, Independent process to ensure Universal Credit covers essential costs (briefing) (Section 3 (Economic Inclusion Advisory Committee; Welfare Expert Advisory Group; Low Pay Commission)). Reviewed 2026-10-04.

8.What delivery needs first

  • data — DWP caseload, take-up and housing-support data by household type to cost options and show who gains. (Requirement; owner: DWP analysts)
  • staff — Independent analysts able to price essentials by household type, with a published method. (Requirement; owner: DWP (commissioning))
  • law — Primary legislation only if the body or the duty to respond is made statutory; rate changes beyond the 2025 Act path need an uprating order or legislation. (Requirement; owner: DWP; Parliament)
  • dependency — Recurring Treasury funding for any rate change: without a tax, spending or borrowing decision the benchmark changes nothing for families. (Genuine veto: nothing proceeds without it; owner: HM Treasury)
  • public consent — Agreement on what counts as an essential and public attitudes to benefit spending. (Requirement; owner: DWP ministers; Parliament)

9.What it would cost

How the cost is built up: Advisory body running cost + (for each option) caseload by household type × change in weekly award × 52, net of interactions with housing support and tax, against the 2025 Act baseline. The two lines are never added to a single price until an option is chosen.

10.Who pays, and what is missing

Programme envelope (a possible route, not an award)
None identified
Allocation committed to this change
None
Remaining gap
Unknown: depends entirely on the option chosen; nothing is allocated.
Proposed financing
None proposed. The advisory body is a small DWP administrative cost; any rate change needs a recurring Treasury decision (tax, spending cuts or borrowing) matched to an OBR-certified costing.
Responsible payer
central government
Budget displaced
Money for higher rates is not available for social-rent homes, early-years services, employment support or debt reduction.

11.First milestone and time to a useful result

Publish the remit, the essentials basket method and the household types (including families with a child under five), with the options to be costed against the 2025 Act path. (Owner: DWP with HM Treasury. Proposed by UK Facts, not an official deadline.)

Time to first useful result: A first benchmark and costing could inform the following uprating review; any effect on hardship is visible only in survey data a year or more after rates change.

What could delay it: Agreement on the basket and household types DWP analytical capacity alongside other reforms A Treasury fiscal event willing to consider the options

12.How we would know

Baseline
Material deprivation and food insecurity among families on Universal Credit with a child under five (DWP Households Below Average Income and Family Resources Survey), and the published gap between each household type’s award and the benchmark.
Comparison
Families just above and below the age or household-type boundary of any change, or households not affected, with trends before and after each uprating; the housing and early-years options are compared on their own outcomes and time horizons, never added together.
Leading indicator
The published gap between each household type’s award and the benchmark, and whether the government’s uprating response addresses it.
Follow-up
Annually after each uprating: hardship and food insecurity, income after housing costs, employment and caseload, and take-up; children’s outcomes only through existing cohort studies over several years.
Continue if
The benchmark is used in uprating decisions and hardship among the named family types falls relative to the comparison when awards move towards it.
Adapt if
Rises are absorbed by rents or deductions: widen the test to housing support and deductions.
Stop if
The benchmark is not used in uprating decisions over successive reviews, or hardship does not change after awards move towards it; then review the remit rather than keep a body that changes nothing.
Thresholds
Not yet set: No business case or evaluation design exists; levels depend on the options costed and the survey sample sizes for the named family types.

What is not yet known, and how to find out

  • What does each option cost, and who gains and loses? (cost)Next step: Commission a distributional costing of two or three named options against the 2025 Act baseline.Scope: Universal Credit standard allowance and child elements for named household types, Great Britain, five years · Data or quotes needed: DWP caseload and take-up by household type, housing-support interactions, OBR behavioural assumptions · Who can estimate it: DWP analysts, certified by the Office for Budget Responsibility
  • What would an advisory body cost to run? (cost)Next step: Scope the secretariat and research budget against comparable bodies.Scope: Secretariat, research and consultation for one standing body · Data or quotes needed: Staffing plan and research budget; published running costs of comparable bodies used as context only · Who can estimate it: DWP
  • Would higher awards reduce hardship and improve young children’s outcomes in the UK? (effect)Next step: Evaluate each uprating against the benchmark using existing survey data before treating any child-outcome effect as established.Defensible route: evaluation of existing delivery
  • What should the essentials basket contain for a family with a young child? (data)Next step: Consult on the basket method and household types before any figures are published.

Sources last checked 4 October 2026 · Owner: Evidence editor (James Harris) · Next check: ONS effects of taxes and benefits on UK household income: financial year ending 2025 (5 November 2026, provisional) or the first trigger: DWP households below average income (annual, usually March).

More decision briefs on other pages

What it would take

The order things have to happen in, who pays, and the effects and appraisals on record.

The order things have to happen in

  1. First, the prerequisite

    Map early-years access and specify the service offer before choosing buildings

    Owner: Councils with DfE

    No date: the timing depends on the steps before it.

  2. First, the prerequisite

    Specify an essentials basket and the options to cost

    Owner: DWP with HM Treasury

    No date: the timing depends on the steps before it.

  3. Then, delivery

    Survey and treat the least efficient low-income homes, with checks after installation

    Owner: Councils, accredited installers and DESNZ

    No date: the timing depends on the steps before it.

  4. Finally, the measured outcome

    Child poverty and deep material poverty falling; the healthy-life gap narrowing over the long run

    Owner: DWP and ONS statistics

    No date: the timing depends on the steps before it.

Who pays, and what is still missing

Cost, committed funding and the remaining gap for the same scope and years. A programme envelope is not an award to a project; a proposal is not committed money. No total is shown because these costs are on different bases or periods and cannot be added.

Cost and funding ledger

  • Best Start Family Hubs roll-out (programme envelope)

    A13 · recurring spending · published programme envelope

    Amount
    at least £500m in total, Announced 6 July 2025 (“over £500 million”), hubs in every local authority from April 2026 to the end of 2028; fiscal years and price basis not stated in the announcement., price basis not stated by the source
    Who pays
    central government
    Committed
    None identified
    Proposed, not committed
    Best Start Family Hubs: “over £500 million” to the end of 2028
    Gap
    Not established
  • Integrated early-years service package and workforce

    A13 · recurring spending · not costed

    Amount
    Not yet costed
    Who pays
    central government, councils, NHS
    Committed
    None identified
    Proposed, not committed
    —
    Gap
    Not established
  • An independent advisory body on benefit adequacy (secretariat, research, consultation)

    A16 · administration · not costed

    Amount
    Not yet costed
    Who pays
    central government
    Committed
    None identified
    Proposed, not committed
    —
    Gap
    Not established
  • Any change in Universal Credit rates or deductions following the benchmark

    A16 · household transfer · not costed

    Amount
    Not yet costed
    Who pays
    central government
    Committed
    None identified
    Proposed, not committed
    —
    Gap
    Not established
  • Warm Homes Plan: low-income home grants

    A18 · capital · published programme envelope

    Amount
    £4.42bn in total, 2025–26 to 2029–30, price basis not stated by the source
    Who pays
    central government
    Committed
    None identified
    Proposed, not committed
    £4.42bn (Warm Homes Plan low-income grant allocations)
    Gap
    Not established
  • Property surveys, installation quality checks, remediation and monitoring

    A18 · recurring spending · not costed

    Amount
    Not yet costed
    Who pays
    central government, landlords, households
    Committed
    None identified
    Proposed, not committed
    —
    Gap
    Not established

“Not yet costed” means no defensible cost has been found — not that the action is free. Lifetime benefits, benefit-cost ratios and forecast savings are never shown here as money available to spend.

Effects on record, with evidence ratings (9 records)

What the evidence says each action changes

Effects on record — these measure different outcomes, so they are not drawn on one scale
ActionOutcome and areaEffectCompared withEvidence
Rebuild integrated early-years help where access is weakestFive GCSEs at A*–C (or equivalent) at 16 Education and children+0.9 percentage points (about 2%)quasi-experimental; method update changed some earlier findingschildren without access, before and after centres opened; cohorts born around 1990–2003evaluated; moderate confidence; England2000s Sure Start, not today’s family hubs.
Rebuild integrated early-years help where access is weakestHospital admissions by age 15 Health and care−8.5% by age 15admissions rose 10% at age 1 before fallingareas with fewer centres per child; cohorts born 1990s–2000sevaluated; moderate confidence; EnglandNot a cashable NHS saving.
Rebuild integrated early-years help where access is weakestCriminal record by age 16 Crime and justice · mixedSize not established—evaluated; moderate confidence; EnglandMore young people had a criminal record by 16, driven by an 11% rise in cautions; a fall in convictions was not significant. A trade-off to watch, not a benefit.
Fix cold and inefficient homes with quality-assured workGas use in homes after solid wall insulation Energy and bills−17% median gas useindicative; varies year to year and includes households choosing to heat moresimilar homes without measures; 2024 savings for measures installed in 2023evaluated; moderate confidence; England and WalesObservational comparison, mostly from government schemes; savings for cavity and loft insulation are smaller.
Fix cold and inefficient homes with quality-assured workGeneral, respiratory and mental health of residents Health and careDirection plausible; size not established—evaluated; limited confidence; Studies in several countries, searched to 2012The review says improvements “are possible”, clearest where warmth was inadequate; no current UK estimate and no cashable NHS saving.
Set an explicit test for whether benefits cover essentialsMaterial hardship among households on Universal Credit Poverty and inequalityDirection plausible; size not established—plausible spillover; limited confidence; Great BritainA benchmark changes nothing unless rates change; how much hardship would fall depends on the option, take-up and housing costs, none of which has been modelled here.
Set an explicit test for whether benefits cover essentialsRecurring benefit spending Public finances and tax · harmSize not established—plausible spillover; limited confidence; Great BritainShown as a trade-off, not a benefit. The size depends on the option and has not been costed on the current baseline.
Fix cold and inefficient homes with quality-assured workLow-income households counted as fuel poor Poverty and inequalityDirection plausible; size not established—plausible spillover; limited confidence; EnglandThe fall in the headline count partly follows from the definition. Whether hardship actually falls depends on real bills, heating behaviour and prices, which the count does not measure.
Fix cold and inefficient homes with quality-assured workDamp and mould after poorly specified or installed insulation Housing · harmSize not established—plausible spillover; limited confidence; EnglandThis is why A18 pairs grants with a survey before work and checks after it. No national rate of defects is published in the sources we checked.
Past appraisals, kept apart from funding (1)
What 2000s Sure Start cost and what the IFS estimates it returned, per cohort

Children with access to a Sure Start centre in England, cohorts born around 1990–2007. Horizon: lifetime of each cohort (benefits discounted at 3.5%). 2023-24 prices, discounted. A historical appraisal — not a budget for a new programme and not cash savings.

  • Upfront cost: £2.7bn

  • Estimated benefits: £5.5bn in total — to government (lower spending and extra tax) £2.4bn; to individuals (higher earnings) £3.1bn

The cost is peak 2010 annual spending used as a stand-in for one cohort. Benefits rest on modelled lifetime earnings. None of this is money available to fund a new service today, and today’s family hubs are not the same programme.

Source: Institute for Fiscal Studies, The short- and medium-term effects of Sure Start on children’s outcomes, Table ES.1, printed p.11

How we would know

Children in relative poverty after housing costs; Children in deep material poverty; Gap in healthy life expectancy, least vs most deprived areas (men).

The outcome measures to watch. A baseline is where we start, not a target; where there is no official target we say so.

Where the ideas come from

Research, counter-evidence and methods (15 sources; 1 claim held back)
  • Universal Credit (Removal of Two Child Limit) Act 2026 (c. 13) — legislation.gov.uk, 2026-03-18 (Royal Assent).Legislation; Great Britain. Relevant passages checked, 2026-10-04.
  • Our Children, Our Future: Tackling Child Poverty — HM Government, 2025-12-05.Government strategy; United Kingdom (measures mainly Great Britain and England). Relevant passages checked, 2026-10-04. Limits: Its projected reduction in child poverty is the government’s modelling, not an observed result; it sets no statutory target.
  • The short- and medium-term effects of Sure Start on children’s outcomes — Institute for Fiscal Studies (Pedro Carneiro, Sarah Cattan, Gabriella Conti, Claire Crawford, Christine Farquharson, Nick Ridpath), 2025-05-22.Difference-in-differences using the staggered roll-out of Sure Start centres (access = living within 2.5km of a centre), with a cost-benefit analysis; England cohorts born around 1990–2007 (varies by outcome); National Pupil Database, Hospital Episode Statistics, police and court records; England. Full text checked (read from an Internet Archive copy), 2026-10-04. Limits: Updated methods changed earlier findings (the 2024 paper’s fall in EHC plans disappears). Today’s family hubs are not automatically equivalent to 2000s Sure Start.
  • Healthy life expectancy by national area deprivation, England and Wales: between 2013 to 2015 and 2022 to 2024 — Office for National Statistics, 15 April 2026.Official statistics; England and Wales. Relevant passages checked, 2026-10-04.
  • Households Below Average Income: FYE 1995 to FYE 2025 — Department for Work and Pensions, 26 March 2026.Official statistics (survey); United Kingdom. Relevant passages checked, 2026-10-04.
  • Annual regional labour productivity (PRODBYREG) — Office for National Statistics, 2025-06-19.Official statistics; UK nations and English regions (ITL1). Relevant passages checked, 2026-10-04. Limits: Relative position only (UK = 100 each year); current prices, so regional price differences are not removed. Stored as productivity-per-hour-index-* in data/economy.
  • Independent process to ensure Universal Credit covers essential costs (briefing) — Joseph Rowntree Foundation (Iain Porter, Isobel Richardson), 2026-01-30.Policy briefing with UK and international precedents; United Kingdom. Full text checked, 2026-10-04. Limits: Does not cost an advisory body or any rate change; essentials estimates are the proposers’ modelling. Makes no claim about savings targets and error.
  • Housing improvements for health and associated socio-economic outcomes (Cochrane Review CD008657); plain-language title 'Housing improvement as an investment to improve health' — Cochrane / Hilary Thomson and colleagues (Hilary Thomson, Sian Thomas, Eva Sellstrom, Mark Petticrew), 2013-02-28.Systematic review, mainly narrative synthesis; 39 studies (33 quantitative, including 5 RCTs; 12 qualitative). Summary or abstract only, 2026-10-04. Limits: No GRADE certainty rating; 14 quantitative studies excluded as poor quality; searches end in 2012, so later UK evaluations are needed before any current effect or cost estimate.
  • Build Back Fairer: The COVID-19 Marmot Review — UCL Institute of Health Equity / Health Foundation (Michael Marmot, Jessica Allen, Peter Goldblatt, Eleanor Herd, Joana Morrison), 2020-12.Review of evidence and data on COVID-19 and inequalities; England. Relevant passages checked (read from an Internet Archive copy), 2026-10-04. Limits: A framework of recommendations; no cashable return and no specific fuel-poverty recommendation in the executive summary.
  • National evaluation of Flying Start: impact report — Welsh Government (Ipsos MORI and SQW), 2013-12.Intention-to-treat survey of families in Flying Start and comparison areas, matched by propensity score on family characteristics.; 2,116 parents: 1,033 in Flying Start areas and 1,083 in comparison areas; Wales. Relevant passages checked (Read from the copy laid before the Senedd Children, Young People and Education Committee.), 2026-10-04. Limits: Flying Start areas were more disadvantaged than comparison areas, which matching cannot fully correct; the evaluators suggest parity with less disadvantaged areas may itself be a gain. Outcomes measured by about age three.
  • Universal Credit Act 2025 (c. 22) — legislation.gov.uk, 2025-09-03 (Royal Assent).Legislation; Great Britain. Relevant passages checked, 2026-10-04.
  • National Energy Efficiency Data-Framework (NEED): summary of analysis 2026 — Department for Energy Security and Net Zero, 2026-06-11.Official statistics (observational comparison); England and Wales. Relevant passages checked, 2026-10-04.
  • Warm Homes Plan (updated 18 March 2026) — Department for Energy Security and Net Zero, 2026-03-18.Government plan and funding allocation; England (devolution arrangements to be set out). Relevant passages checked, 2026-10-04. Limits: Allocations by line; the plan mixes grants, loans and financial transactions, which are not the same kind of money. Low-income funding for all tenures from 2027/28 and devolution implications were to be set out in spring 2026.
  • Annual Fuel Poverty Statistics in England, 2026 (2025 data) — Department for Energy Security and Net Zero, 26 March 2026; corrected 7 August 2026.Official statistics; England. Relevant passages checked, 2026-10-04.
  • Government revives family services supporting 500,000 more kids (press release) — Department for Education, 2025-07-06.Government announcement; England. Full text checked, 2026-10-04. Limits: A programme announcement: fiscal years and price basis are not stated, and no evaluation design is described.

Counter-evidence and criticism

  • Rebuild integrated early-years help where access is weakest: Updated methods removed an earlier fall in EHC plans; crime results are mixed (more cautions); benefits are largely modelled lifetime earnings. Wales’s Flying Start raised service contact but found no measurable difference in child development by about age three. (Institute for Fiscal Studies; Welsh Government (Ipsos MORI and SQW))
  • Set an explicit test for whether benefits cover essentials: An essentials basket is a normative choice, and a published benchmark creates pressure for large recurring spending that must be financed by tax, cuts elsewhere or borrowing; higher basic rates also change work incentives at the margin. JRF itself does not cost the change. (Joseph Rowntree Foundation)
  • Fix cold and inefficient homes with quality-assured work: Savings vary year to year and include households choosing to heat more; health effects are uncertain and the review is old. (Cochrane / Hilary Thomson and colleagues)

Claims held back

  • Longitudinal and area evidence identifies where disadvantage is concentrated (brief strength, cited to the page and S11) — True but generic: it describes the evidence base rather than a capability of the country, so it is not used as a strength. Needed: A specific, measured asset (for example a funded programme with evaluated reach).

“Full text checked” means we read the report itself; “relevant passages” means the sections behind each figure; “summary or abstract only” means we could not read the full study, so no number from it is published here without another source.

Other options compared — not on the shortlist (4)

Other options compared

Options from earlier work on this page that are not on the shortlist. They remain valid choices; their evidence is shown as before.

  • immediate reliefStatus: legislated

    Benefit adequacy and take-up for families with children

    Aims to:
    Fewer children in relative and deep material poverty.
    How:
    Higher payments and full take-up raise the incomes of the poorest families directly.
    Who decides:
    DWP and HM Treasury.
    Main constraint:
    Fiscal cost; interactions with work incentives.
    Evidence:
    Moderate evidence — evaluated, with limits on scope or transfer
    See the trade-offs and evidence
    What the evidence shows
    The government’s child poverty strategy projects that its measures, including abolishing the two-child limit from April 2026, would reduce child poverty compared with not taking them; that is a modelled projection, not an observed result. Cash transfers reliably raise measured income; effects on longer-term outcomes are less certain.
    Policy status
    Two-child limit abolished from 6 April 2026; Child Poverty Strategy published December 2025 without a statutory target.
    Resources
    Benefit spending; DWP administration to raise take-up.
    Consent and decisions needed
    Benefit spending is politically contested.
    Time
    Within a year for income; longer for wider outcomes.
    Cost and yield
    About £3.0bn in 2029–30 for removing the two-child limit in Great Britain (the Act’s explanatory notes, paragraphs 49–50); Northern Ireland’s equivalent change is costed separately and is not included.
    Trade-offs and who pays
    Spending here competes with other priorities or requires higher taxes.
    How we would know it worked
    Leading indicator: Take-up rates and household incomes of families with children. Outcome: Child poverty after housing costs and deep material poverty. It would not be working if: Incomes rise but material deprivation does not fall.
  • structuralStatus: operating

    Pay floors and secure work

    Aims to:
    Higher earnings for the lowest paid without loss of jobs.
    How:
    Raising the National Living Wage and improving hours and security lift income from work.
    Who decides:
    Department for Business and Trade; Low Pay Commission; employers.
    Main constraint:
    Costs fall on low-margin sectors such as care and hospitality.
    Evidence:
    Moderate evidence — evaluated, with limits on scope or transfer
    See the trade-offs and evidence
    What the evidence shows
    Low Pay Commission evaluations have found that minimum wage increases raised pay at the bottom with limited measurable job losses so far, though effects at higher levels relative to median pay are less certain.
    Resources
    Enforcement by HMRC; employer costs.
    Consent and decisions needed
    Broad support for a wage floor; disagreement on its level.
    Time
    Annual uprating.
    Cost and yield
    Mainly borne by employers and consumers; some public cost through public-sector and care pay.
    Trade-offs and who pays
    Risk to jobs or hours if the floor rises too fast; does not help people out of work.
    How we would know it worked
    Leading indicator: Pay at the bottom of the distribution. Outcome: In-work poverty after housing costs. It would not be working if: Employment in low-paid sectors falls sharply.
  • structuralStatus: funded

    More homes at social rent

    Aims to:
    Lower housing costs for low-income households, especially renters with children.
    How:
    Social rents are well below market rents, so more social homes raise income after housing costs.
    Who decides:
    MHCLG, Homes England, councils and housing associations.
    Main constraint:
    Build costs and construction workforce.
    Evidence:
    Moderate evidence — evaluated, with limits on scope or transfer
    See the trade-offs and evidence
    What the evidence shows
    Housing costs drive much of the gap between poverty before and after housing costs; the delivery evidence for new social housing is on the Housing page.
    Policy status
    Social and Affordable Homes Programme 2026–2036.
    Resources
    Grant, land and construction capacity.
    Consent and decisions needed
    Local planning consent for each scheme.
    Time
    Years to complete homes.
    Cost and yield
    Up to £39bn over ten years for the national programme.
    Trade-offs and who pays
    More subsidy per home for social rent means fewer homes in total.
    How we would know it worked
    Leading indicator: Social-rent completions. Outcome: Poverty after housing costs among renters. It would not be working if: Completions rise but low-income renters’ costs do not fall.
  • structuralStatus: proposed

    Taxing wealth and capital gains more like income

    Aims to:
    More revenue from the top of the wealth distribution, and a smaller gap in how income and gains are taxed.
    How:
    Aligning capital gains tax with income tax, reforming inheritance tax reliefs, or a tax on very large fortunes.
    Who decides:
    HM Treasury and HMRC.
    Main constraint:
    Valuing assets; mobility of the wealthiest; transition rules.
    Evidence:
    Limited evidence — plausible mechanism, little direct evaluation
    See the trade-offs and evidence
    What the evidence shows
    Yields are modelled and depend on behaviour (timing of gains, emigration, avoidance); there is no evaluation showing these taxes reduce hardship directly — that depends on how the money is spent.
    Resources
    HMRC valuation and enforcement capacity.
    Consent and decisions needed
    Contested; supported by some campaigners and economists, opposed by others.
    Time
    Legislation within a year; revenue builds over several years.
    Cost and yield
    Raises revenue: modelled yields range widely by design — see the proposals.
    Trade-offs and who pays
    Possible effects on investment and where the wealthy live; administrative cost.
    How we would know it worked
    Leading indicator: Revenue raised against forecast. Outcome: Wealth shares, alongside what the revenue funds. It would not be working if: Revenue falls short of forecasts because of behaviour change.
The options side by side
OptionResourcesTimeEvidenceOutcome to watch
Benefit adequacy and take-up for families with childrenBenefit spending; DWP administration to raise take-up.Within a year for income; longer for wider outcomes.moderateChild poverty after housing costs and deep material poverty.
Pay floors and secure workEnforcement by HMRC; employer costs.Annual uprating.moderateIn-work poverty after housing costs.
More homes at social rentGrant, land and construction capacity.Years to complete homes.moderatePoverty after housing costs among renters.
Taxing wealth and capital gains more like incomeHMRC valuation and enforcement capacity.Legislation within a year; revenue builds over several years.limitedWealth shares, alongside what the revenue funds.

Plan reviewed 2026-10-04. How we judge evidence.

Six specific proposals for taxing wealth, with modelled revenue and who would pay, are compared in taxing wealth: six proposals. Health gaps in this section use the ONS 2022 to 2024 release.

How this connects

Sources and methods (4)

Method notes

  • Health figures are for England; income and poverty for the UK; wealth for Great Britain. Each chart states its own scope.
  • Relative poverty is below 60% of the contemporary median household income, after housing costs unless stated.
  • Area deprivation describes neighbourhoods, not individuals.