Cash transfers improve birth outcomes and support child development
Published: 29 May 2026
The most effective early-years income supports are unconditional, recurring, and delivered early in pregnancy to low-income families, according to new research.
The most effective early-years income supports are unconditional, recurring, and delivered early in pregnancy to low-income families, according to new research.
These programmes consistently improve birth outcomes and early child development.
These are the findings of an evidence review led by Dr Emma Stewart, Research Associate in Public Health, School of Health and Wellbeing, who worked with the Scottish Parliament Information Centre (SPICe) as part of its Academic Fellowship programme. The scheme aims to provide the Parliament with specialised resources which allow it to undertake and communicate analysis which would otherwise not be possible, and to increase the use of academic expertise within the Parliament.
The first 1000 days – from conception to age two – are a critical window for shaping a child's lifelong health and development.
Cash transfers in the early years have become a widely used policy lever to support families with young children and reduce socio-economic inequalities. In Scotland, these payments include the Best Start Grant.
Growing up in poverty can harm a child's health, starting before birth and continuing through their physical, emotional, and mental development. Giving cash directly to mothers during pregnancy and in the early years of a child's life can lead to better health outcomes – like fewer premature births, lower chances of dying in infancy, healthier birth weights, better breastfeeding rates, and more use of health services.
The review found:
- One-off lump sum payments delivered during pregnancy consistently improve birth outcomes but tend to have mixed or modest effects in the postnatal period.
- Most policies effective at improving child health are unconditional, recurring, and targeted at low-income families or delivered universally in high-poverty areas.
- Evidence is lacking for the impact of one-off and regular payments on child health or development beyond infancy.
- Cash transfers during pregnancy and early childhood may potentially reduce child health inequalities but more research evidence is needed.
These patterns remain consistent across Australia, Canada, Poland, South Korea, Spain, Switzerland, US and UK.
This work was funded by the Medical Research Council Impact Acceleration Account (MRC IAA), with support from the Economic and Research Council Impact Acceleration Account (ESRC IAA).
First published: 29 May 2026
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