A direct child payment is the most powerful and effective intervention to reduce poverty a leading report has found
A recent report by Policy in Practice has identified that the most powerful and effective intervention designed to reduce poverty is a direct child payment.
Today (Tuesday, June 24th), Rhun ap Iorwerth, Plaid Cymru leader, challenged the Labour First Minister, Eluned Morgan, on her refusal to implement such a policy.
Plaid Cymru has called on the Labour Government in Wales to implement a Child Payment immediately to “reach nearly one-third of households that are in poverty”, and “reduce child poverty by nearly a quarter”.
Plaid Cymru announced their intention to create a direct child payment, Cynnal, in their Spring Conference in March of 2025. The policy took inspiration from the Scottish Child Payment, which has aided Scotland in becoming the only nation where child poverty is projected to fall.
By 2029, child poverty is set to rise to 34.4% in Wales, which would be the highest rate of all UK nations.
The Plaid Cymru leader judged the Labour First Minister for her inaction on this ‘national stain’, accusing her of ‘continued objection’ towards the policy, which has been backed by experts in the sector.
The Plaid Cymru leader also challenged the First Minister over the Labour UK Government’s proposed changes to welfare, changes which see the Government in Westminster facing a rebellion from the Labour backbenchers. Mr ap Iorwerth asked the Welsh Labour leader she would urge her Welsh Labour MP colleagues to vote on the changes, with only 3/27 Welsh Labour MPs having declared their objection.
Rhun ap Iorwerth MS went on to state that only a Plaid Cymru Government has ‘real ambition’ to tackle child poverty, that will provide a ‘brighter future’ for future generations.
Plaid Cymru leader, Rhun ap Iorwerth MS, said:
“The introduction of a Welsh Child Payment has emerged as the most powerful and effective of all interventions designed to reduce child poverty. Such a payment would reach nearly one-third of households that are in poverty, particularly benefiting larger families and households with young children.
“The policy has proved transformational in Scotland with it set to be the only nation, based on current trends, that will succeed in reducing child poverty by 2029. In stark contrast, child poverty in Wales is set to rise to a scandalous 34.4% in the same timeframe - the highest in the UK. So, with such unequivocal evidence, what is the First Minister waiting for?
“The answer to that question is clear – tackling poverty is not a priority for Labour. While Labour keep the cruel two child cap, and push more people into poverty through cuts to disability benefits, Plaid Cymru are pledging to take positive action on reducing poverty – showing that we are the only Party willing to tackle this national stain.
“This is made even clearer by the list of Labour MPs ready to vote against Labour’s cruel cuts to disability welfare, because despite Wales being hit disproportionately by the cuts, it appears that only a handful of Labour MPs from Wales are on the list of rebelling Labour MPs.
“Plaid Cymru know that this is not as good as it gets for Wales, we know that 1/3 of our children should not be living in poverty, that poverty is not inevitable in our communities. That is why we are the only party willing to tackle this issue head on.
“A vote for Plaid Cymru in 2026 is a vote for a party with real ambition and credible plans to tackle child poverty, backed by the experts, for a brighter future for our future generations.”
Sioned Williams MS, Plaid Cymru's spokesperson for social justice and equalities, said:
“The need to address poverty has never been more urgent.
“Over the past 30 years, children have consistently faced the highest poverty rates in Wales.
“Plaid Cymru is ready to create anti-poverty policies like our Cynnal scheme, a transformative child payment, learning from Scotland, where a similar policy is already lifting tens of thousands of children out of poverty, because we must forge a different path in Wales if we are to fulfil that duty to safeguard and cultivate the future of our nation.
“Wales deserves better. Our children deserve better. And in a year's time, the people of Wales will have a choice to choose a different path to a better future, and Plaid Cymru will be ready to serve them.”