• Centre for Young Lives think-tank’s annual ‘State of the Nation’ report reveals a generation of children in England continue to grow up in crisis, and that this crisis is worsening for many. ‍
• Report warns that despite progress in some areas, some of the most concerning forms of vulnerability – like deep poverty, housing insecurity or missing half of school – continue to rise, leaving more children at risk of problems later on and diminished life chances. ‍
• Report calls on Andy Burnham's Government to make reducing childhood vulnerability a national mission, warning that incremental change will not be enough to meet the scale of the challenge.

The Centre for Young Lives think-tank is today (Monday 27 July) publishing its annual State of the Nation report. It collates data and indicators from a range of sources to track trends in poverty, mental health, education, safeguarding, housing, SEND, youth justice, and employment in England to provide a comprehensive snapshot of childhood vulnerability and the scale of need, and where further investment in support is required.

[.download]Download the report[.download] [.download]Download the technical annex[.download]

The State of the Nation 2026 warns that although the challenges facing children largely pre-date the current government, some key indicators have continued to worsen over the last two years, while other issues have improved slightly but remain far too high – highlighting the scale of the task facing Prime Minister Andy Burnham.  

The report reveals how:

• More children are growing up in difficult circumstances, with rising poverty and housing insecurity increasing levels of vulnerability.  
• These challenges are increasingly having a knock-on effect on children, leading to more children missing school, poor mental health and rising obesity, and growing concerns about harm and exploitation.
• The systems designed to support vulnerable children are under sustained pressure, with demand outstripping capacity across many services.
• The combination of these trends is creating a perfect storm for millions of children and putting enormous stress on public spending.   

The report highlights some of the entrenched challenges facing millions of children. For example, 3.5 million children in England – equivalent to around 8 or 9 children in every classroom – are living in relative poverty, while 2 million children in the UK are living in deep material poverty and unable to afford key essentials. One in five children and young people has a probable mental health disorder.  

The report also shows that:

• The number of children living in temporary accommodation has risen by 33% since 2018, reaching a record 165,450 in 2024.
• The number of children missing more than half of school has continued to increase and now stands at 176,361, more than triple the level in 2017/18.
• The number of home-educated children has increased by more than half since 2021/22, reaching 175,900 in 2024/25.The number of children in care living in illegal unregistered children's homes has increased by more than 35% in the latest year alone and is now almost six times higher than in 2020/21.
• More than 1.27 million referrals were made to children's mental health services in 2024/25, continuing a sharp upward trend.
• The number of children with Education, Health and Care Plans has risen by more than 20% in the last two years, reflecting growing demand for specialist support.
• Cases where a child's mental health was identified as a factor in social care assessments have risen by nearly 10% over the last two years.

While the overall picture remains concerning, the report notes improvements in several indicators over the past two years:

• The number of children who are persistently absent (missing ten per cent of school) has fallen by almost 10% in the last year and permanent exclusions fell by 9% in the last year – but both measures remain high.
• The number of homeless households with children fell slightly (0.6%) in the most recent year, after sharp increases in previous years.
• The overall number of children in care fell by 2.1% in 2025 and the number of children in care reported missing fell by 2.2% in the last year.
• The number of first-time entrants to the youth justice system fell by 3.8% in the last year and is down more than a third since 2018.
• More children are achieving school readiness by age 5, with the number not reaching a good level of development falling by 13.8% since 2021/22.
• Food insecurity has fallen by 23% over the last year, although it remains above pre-cost-of-living-crisis levels.

The report calls on the new administration to move away from a ‘crisis state’ that intervenes in fragmented ways only when it is forced to do so, to an ‘investment state’ that works holistically from the outset to ensure children, young people and families are supported to thrive, addressing disadvantage before it translates into vulnerability, harm or adverse outcomes.

It recommends:  

• Making reducing childhood vulnerability a national mission, with a clear cross-government commitment to helping all children thrive and reducing vulnerability over the next decade.  
• Creating a Cabinet-level Children and Families Unit to drive action across education, health, housing, justice, employment and local government.  
• Tackling the root causes of vulnerability, including child poverty, homelessness, poor mental health, domestic abuse and family adversity.  
• Giving mayors and local leaders greater responsibility and accountability for improving outcomes for vulnerable children through joined-up local services.  
• Improving data sharing between services so vulnerable children can be identified earlier and do not fall through the gaps.

Haroon Chowdry, Chief Executive, Centre for Young Lives, said:

“The uncomfortable truth is that the data in this report is simply not the sign of a country that genuinely values all children and puts their interests first. 

“The devastating impact of growing up in deep poverty or without a secure home is a daily reality for millions of children. Levels of anxiety and poor mental health remain at crisis level, while too many children are still losing learning or falling out of education.  

“Some of the country’s most vulnerable children – those taken into care by the state – are increasingly living in potentially inappropriate homes or areas. And more than a million young people are not in education, employment or training. 

“This is holding back not only their own life chances but our country’s social cohesion and future prosperity.  

“Despite some welcome action from the Government, much more needs to be done to support children, address vulnerability and disadvantage, and prevent any problems they face from reaching crisis level.

“We can’t have more of the same – an announcement here, an initiative there, and a couple of pilot programmes. Incremental change will not cut it anymore.

“We need a national ambition for tackling vulnerability among England’s children and young people.”  

ENDS

[.download]Download the report[.download] [.download]Download the technical annex[.download]

For further information and media interview requests: jo.green@centreforyounglives.org or 07715105415.

Notes to editors:

1. The State of the Nation 2026 report is available here.
2. ‍The technical annex is available here.‍
3. An interactive online dashboard, where key data can be explored, has also been launched and is available here.
4. This report has been published with funding support from the Lindley Foundation and the JABBS Foundation for Women and Girls.
5. The Centre for Young Lives think-tank was founded by Baroness Anne Longfield CBE in February 2024. It uses high quality research and evidence to advocate for and establish innovative solutions and new models that improve the lives of children, young people, and their families.