Childhood is a critical period for the development of human and social capital, yet too many children across OECD countries experience poverty, affecting their well-being and limiting opportunities from an early age. Our report examines how the allocation and design of social spending can help reduce child poverty and improve child well-being. The findings show that reducing child poverty is not only about how much governments spend, but also how resources are allocated across policies and services.

Our new analysis shows that no single policy is sufficient to improve child well-being and reduce poverty. While additional investment can help, the greatest gains come from balanced policy packages that combine employment support, quality public services and adequate income protection such as cash transfers. For instance, increasing their share of social spending could boost the impact of social policies on reducing relative child poverty by around 27%.