Universal child benefits (UCBs) act as the foundation for a comprehensive and adequate system of child social protection. Paid as regular cash or tax transfers to families for their dependent children (see below for full definition), they constitute a core type of social protection policy that can effectively reduce disparities in child social protection coverage, reduce child poverty and generate positive returns on public investment, both within and across countries.
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Progress in increasing effective global social protection coverage for children has been modest and unequal, even as the challenges faced by children continue to grow. Only 28.1 per cent of children aged 0–15 years has access to a child or family benefit, despite children being twice as likely as adults to live in poverty.
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The unfolding climate crisis together with other recent crises have shown the importance of social protection systems in upholding the rights of children and protecting them from the acceleration in child poverty triggered by these crises.
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Significant underinvestment in social protection has contributed to persistent gaps in coverage for children. Public expenditure on social protection often lags behind other sectors, particularly in low- and middle-income countries. Gaps and inequalities in social protection coverage often result in children being excluded for reasons of age, gender, disability status, location and more.
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Universal child benefits (UCBs) are the foundational policy for child and social development. As regular cash or tax payments they offer flexible support for children’s needs and provide a simple and scalable route for increasing public investment in children through universal coverage, strengthening welfare systems, supporting children’s rights and promoting child and socio-economic development.
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The evidence shows UCBs to be a cost-effective way to reduce child poverty in both absolute and relative terms, with the potential to meet a broader array of social and economic goals. Currently, 47 countries and territories provide UCBs or quasi-UCBs. Benefit amounts vary widely across countries, but the key factors are adequacy and setting benefits at the right level is key to achieve impact.
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This brief identifies a set of policy design considerations, informed by international social
security standards, intended to support countries considering enhancing or establishing a UCB. They include periodicity; duration; adequacy; indexation; coverage; eligibility rules with regard to children’s age, family structure, and other socio-demographic considerations including geography.
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A well-designed and adequate UCB that ensures universal coverage can provide the foundation for a comprehensive social protection system for children that also enhances the design and delivery of other services and promotes broader # socio-economic development.