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Ministers have been urged to reform the benefits system to tackle child poverty, after a report found it to be a major cause of mental illness that “casts a shadow” over young people’s wellbeing.

The report, by the Centre for Mental Health, Save the Children UK and the Children and Young People’s Mental Health Coalition, found that the number of children living in poverty in the UK had increased to 4.3 million, while one in five children and young people aged between eight and 24 had a diagnosable mental health problem.

Children from the poorest families were four times more likely to have a mental health issue than those from the most affluent backgrounds, the report found.

The charities recommended the government overhaul the benefits system to reduce child poverty; introduce mental health support teams across every school in England; expand free school meals provision to all children in households in receipt of universal credit; and lock the yearly increase of the free school meals allowance to inflation.

The study comes as Keir Starmer faces increased pressure to scrap the two-child benefit limit, as research reveals that it would lift 250,000 children out of poverty, and therefore have implications for their mental health.

The Labour party leader suspended seven of his MPs on Tuesday night after they rebelled against the government to vote for a Scottish National party amendment calling for the benefit cap to be scrapped.

The report also warned of the “dual crises of poverty and mental health”, saying that the higher risk of poverty faced by minority ethnic children “exacerbates the impacts of racism and discrimination on children’s mental health”.

Priya Edwards, the policy and advocacy adviser at Save the Children UK, said: “A childhood blighted by poverty and poor mental health leads to dreadful outcomes for young people that sadly impacts them for the rest of their life. Families deserve better than constant anxiety about making ends meet.

“Immediate action the UK government should take would be to support the most vulnerable families by introducing a ‘child lock’. This would lock social security entitlements each year by average earnings or inflation, whichever of the two is higher. Parents would get greater financial stability, easing the stress and anxiety of financial hardship for the entire family.”

Andy Bell, the chief executive at Centre for Mental Health, said: “Poverty casts a shadow over a child’s mental health, and it’s a shadow that can last a lifetime. Effective action from the government can start to turn this around.

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“Protecting children and families from poverty and its ill effects on their lives is not just good for the economy. It’s a health intervention, and a vital one at that. For a mission-led government, it will open the door to improved child health, preventing illness, boosting business, and strengthening communities.”

A government spokesperson said: “This government is committed to tackling child poverty, which is why the new ministerial taskforce launched last week will look at all the available levers across government as we begin this urgent work.

“We will also provide access to specialist mental health professionals in every school so young people can get the support and care they deserve.”



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