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An extra £20 per week could reduce the chances of children who are living below the poverty line from entering the care system, a new study has found.
Researchers analysed data from six local authorities in London and south-east England and found that children living in the poorest households were more likely to experience repeat involvement with social care services and likely to be placed on child protection plans.
Across these areas, 300 additional child protection plans were associated with children in the most financially disadvantaged homes, highlighting the role of severe poverty in shaping child welfare involvement once families enter the system.
These plans are estimated to be costing local authorities around £3.6m over three years.
However, an examination of the £20 uplift to Universal Credit during the Covid-19 pandemic showed that children within those households were less likely to progress to child protection plans compared to those who weren’t eligible.
It also showed they were more likely to receive lower-level support, suggesting that modern increases in income can prevent escalation of social care.
Parents and carers who spoke to researchers said that they were struggling to make ends meet due to debt, rising living costs, childcare expenses, housing insecurity and related health challenges.
open image in gallery Financial hardship has been found to impact children’s emotional wellbeing and school attendance ( PA )
Financial hardships was found to impact on children’s health, emotional wellbeing and school attendance, as well as contributing to stress felt by parents.
The study, which was led by Kingston University in collaboration with the National Children’s Bureau, Policy in Practice, the University of Sussex and Research in Practice, with funding from the Nuffield Foundation, has called for agencies to identify financial hardship at the earlier point of contact.
Professor Rick Hood from Kingston University London said: “This study shows that when families’ incomes fall, involvement with children’s social care can increase - and when incomes rise, it can reduce the need for more intensive intervention. Even relatively small improvements in income can make a meaningful difference to families under pressure.
“This has clear implications for policy. Decisions that reduce support for low-income families risk increasing demand on child protection services, while measures that strengthen family finances can help prevent problems escalating in the first place.”
They have called for social care teams to be equipped with training to identify financial hardship and for practitioners to hold respectful conversations about family finances, to help reduce stigma and encourage families to share information about their needs.
Keith Clements, senior researcher at the National Children’s Bureau, said: “During the course of this study, the social care professionals we spoke to described being powerless to support families at an early stage where addressing their financial needs might make a difference in preventing their problems from escalating.
“This clearly needs to change. But it must be done in a way that recognises the considerable stigma, judgement, and discomfort that parents feel when quizzed about their incomes by social care staff.”