Research: Costs of Child Poverty: A rapid evidence review of the effect of income on child outcomes

This report reviews evidence on how changes in family income affect children’s school readiness, health, and economic outcomes.

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This report reviews robust evidence on how changes in family income affect children’s school readiness, health, and economic outcomes.

The Department for Work and Pensions commissioned this rapid evidence review to inform the UK government’s Child Poverty Strategy. The review explores whether increasing family income during pregnancy or childhood leads to better outcomes for children. Only studies using robust methods (randomised controlled trials (RCTs) and quasi-experimental designs (QEDs) were included. The review addresses three questions:

The review provides a systematic synthesis of 35 studies, highlighting the types of income interventions (e.g., cash transfers, tax credits, earnings supplements) and their effects on children’s development, health, and future economic outcomes.

UK-based evidence shows health impacts, including reductions in infant mortality and emergency hospital admissions, while international studies support improvements in economic and school readiness outcomes.

The review identifies gaps in the UK evidence base, noting that most studies are from the US, Canada, or Latin America, and calls for further UK-specific research.

The review strengthens our understanding of how income affects child outcomes by confirming that sustained and targeted increases in household income can causally improve outcomes.

It builds on previous research conducted by Cooper & Stewart (2021), by focusing on studies that show causality and by including a wider range of economic outcomes.