UK investment in family benefits is failing to improve outcomes

The study by the Organisation for Economic Co-operation and Development (OECD) found that the UK government spent on average £138,000 in family support on each child from birth to the age of 18. This is more than most OECD countries, which have an average spend of £95,000.

But in terms of gender pay equality, child poverty and employment opportunities for parents Britain falls behind other countries, particularly in Scandinavia, that have a similarly high investment in family support.

One factor is that countries such as Sweden focus funding on universal support services such as affordable childcare, whereas the UK’s focus is on cash benefits direct to families.

Dominic Richardson, one of the OECD policy analysts who worked on the report, said the UK government should consider shifting investment from benefits to family services such as childcare.

He said: "Considering the comparable spend with some of the Nordic countries it is worth the UK exploring how they can make better use of its investment."

However, he warned that such a move needs to be "well planned with a transition phase so that vulnerable families do not lose out by having money suddenly taken away from them".

The report also warns that progress in reducing child poverty between 1995 and 2005 in the UK has stalled and is predicted to rise due to cuts in funding for early years services. This will make it harder for families, and in particular women, to find work.