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Giving families an extra £20 a week could cut children’s chances of entering care, study finds

An extra £20 a week could reduce the chances of children living below the poverty line entering the care system, a new study has found.

Researchers analyzed data from six local authorities in London and south-east England and found that children living in the poorest households were more likely to repeatedly attend social care services and be included in child protection plans.

In these areas, an additional 300 child welfare plans were associated with children in the most financially disadvantaged homes, underscoring the role of severe poverty in shaping child welfare participation once families enter the system.

These plans are estimated to cost local authorities around £3.6 million over three years.

However, a review of the £20 increase to Universal Credit during the Covid-19 pandemic showed children in these households were less likely to be on child protection plans than those who were not eligible.

It also showed that they were more likely to receive lower levels of support; This suggests that modern increases in income may prevent the expansion of social care.

Parents and caregivers who spoke to researchers said they were struggling to make ends meet due to debt, rising costs of living, child care costs, housing insecurity and related health problems.

Financial stress found to impact children's emotional well-being and school attendance
Financial stress found to impact children’s emotional well-being and school attendance (P.A.)

Financial difficulties have been found to impact children’s health, emotional well-being and school attendance, contributing to the stress felt by parents.

The study, 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, called on organizations to detect financial distress earlier at the point of contact.

Professor Rick Hood, from Kingston University, London, said: “This study shows that involvement in children’s social care can increase when family incomes fall, reducing the need for more intensive intervention when incomes rise. Even relatively small improvements in income can make a meaningful difference for families under pressure.”

“This has clear policy implications. Decisions that reduce support for low-income families can lead to increased demand for child protection services, while measures that strengthen family finances can help prevent problems from escalating further.”

They called for social care teams to be equipped with training to identify financial difficulties and for practitioners to have respectful conversations about family finances, helping to reduce stigma and encouraging families to share information about their needs.

Keith Clements, senior researcher at the National Children’s Bureau, said: “The social care professionals we spoke to during this study described being powerless to support families at an early stage, and that meeting their financial needs could make a difference in preventing their problems from escalating.

“This clearly needs to change. But it must be done in a way that acknowledges the significant stigma, judgment and discomfort parents feel when questioned about their income by social care staff.”

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