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Budget measure to lift 15,000 children out of poverty.

On a visit to BusyBees nursery in Livingston Village today, First Minister John Swinney heard first-hand about how families are struggling with the costs crisis.

The 2025-26 budget announced a commitment to spend £3 million over the next two financial years to develop the systems to deliver the mitigation of the two-child cap, which will lift 15,000 children out of poverty.

The budget contains a range of other measures which will contribute to the Scottish Government’s mission to eradicate child poverty, including uplifting the Scottish Child Payment and support for access to affordable homes.

These measures build on existing policies which modelling published in February estimated will keep 100,000 children out of poverty this year.

Mr Swinney said:

“It’s clear from speaking to families that the action we’re taking to lift the UK Government’s child benefit cap will be transformational.

“We have listened and taken action – that is the approach people can expect from my government.

“I want to eradicate child poverty in Scotland –and it is clear that the two-child cap is a key driver of poverty and hardship across the UK.

“The UK Government should have lifted the cap. We can no longer wait for them to do the right thing so we are taking the action that families in Scotland need to see.

“But this will only happen if Parliament votes for the Budget – and I am urging colleagues across parties to unite behind our plans to end the two child cap.”

Background

Scottish Budget 2025-26

Analysis by the Child Poverty Action Group stated that mitigating the two-child limit in Scotland could lift around 15,000 children out of poverty.