On Wednesday 28 October, the Chancellor, John Healey MP, will deliver the 2026 Autumn Budget, detailing the government’s plans for public spending over the coming financial year. 

 With 41% of children in single-parent families living in poverty in the UK, Gingerbread wants to see the government seize this opportunity to ease the financial pressures on these households. 

What will make the biggest difference to single parents in the Autumn Budget? 

Abolish the benefit cap 

The benefit cap limits the total amount a household can receive in social security payments. Single-parent families make up the majority of those affected by the cap, accounting for 70% of capped households, and over half of these have a youngest child under the age of five. 

Last year, the government removed the two-child limit (confusingly, also known as the “two-child benefit cap”), which restricted Universal Credit support to a maximum of two children per family. This lifted hundreds of thousands of children out of poverty. However, the impact would have been far greater had the benefit cap also been abolished. As a result, some households gain nothing from the change, while others see only a partial gain because they become newly subject to the cap. We are calling on the government to abolish the cap so that more families can receive vital support. 

Uprate Local Housing Allowance 

A recent Gingerbread survey found that housing is a key concern for single-parent families, and our The Single Parent Debt Trap report found that renting significantly increases their risk of problem debt. Local Housing Allowance (LHA) sets the maximum support private renters can receive through social security and is intended to cover the cheapest 30% of local rents. However, rates have been frozen since April 2024 and remain based on September 2023 rental data, despite rents continuing to rise.  

This growing gap between private rents and government support leaves low-income households at greater risk of housing insecurity and financial hardship. To address this, the government should uprate LHA to the 30th percentile of local rents, and to ensure that support keeps pace with housing costs. 

Improve access to affordable childcare 

The lack of affordable and accessible childcare remains one of the biggest barriers to single parents’ ability to find and stay in work, education and training. Gingerbread’s The Single Parent Debt Trap report found that working more hours can actually increase the likelihood of single parents experiencing problem debt, as any increase in income is often more than offset by increased costs. Further, the 30 hours of government-funded childcare remains limited to eligible working parents, creating a significant barrier for those looking to improve their skills, and Universal Credit childcare support is limited, covering a maximum of 85% of eligible costs and being subject to the Universal Credit taper. 

Although recent improvements are welcome, more action is needed. We welcome the government’s childcare review, but the Budget must deliver immediate support by extending 30 hours of funded childcare to parents in education and training, and ensuring the Childcare Element of Universal Credit is ringfenced and exempt from the taper. 

Strengthen Universal Credit (UC) support 

Gingerbread’s They’re Sanctioning the Children report finds that single parents perceive the Universal Credit system as confusing and hostile. Conditionality and sanctions create a negative environment that affect their mental health and relationship with work coaches, which, in turn, creates additional barriers to finding suitable and sustainable employment. Meanwhile, successive cuts have eroded the value of the standard allowance, leaving families struggling to meet rising living costs despite recent uprating.  

The government must strengthen Universal Credit so that it provides an adequate safety net. This must include reviewing the merits of abolishing sanctions, reversing the 2023 changes to conditionality for lead carers and uprating Universal Credit to restore and maintain its value. 

Take further action to ease the cost-of-living 

The government should also consider other targeted measures to help single-parent families manage rising costs, including support with energy costs and energy debt for low-income households. Single-parent households have consistently had the highest proportion of households in fuel poverty, with 18.1% affected in 2025. Our The Single Parent Debt Trap report also found that utilities were the second most common purchase, after groceries and household supplies, among single parents who had turned to credit. While the Fuel Poverty Strategy is welcome, further action is needed, including increased support through the Warm Home Discount. 

Summary 

Taken together, the measures outlined above would make a significant difference to the lives of single-parent families and would support the government’s ambition to reduce child poverty.  

Once the Budget has been delivered, we will analyse the announcements and publish our view on what they mean for single-parent families. To stay up to date with our work, please sign up to our mailing list: