Uruguay · Child Policy · 2025

Child
poverty
is a choice.

Uruguay is one of Latin America's wealthiest nations — yet 155,000 children live in poverty. New research shows it doesn't have to be this way.

19%

of Uruguay's children live below the national poverty line — nearly twice the adult rate

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The Problem

The numbers
don't lie.

Uruguay is a high-income country. Yet child poverty defies the national average — and the gap with peer nations is stark.

19%
of children live below the national poverty line — nearly double the 10% rate for the general population
1 in 4
children experience relative income poverty. In comparable European countries, strong transfers bring that figure down to 1 in 10.
9/10
people living below Uruguay's poverty line are children, teenagers, or adults sharing a home with them
International Context

Far behind
its peers.

Uruguay compares itself to Latin American neighbours — but its income level puts it in a different league. Measured against comparable economies, the gap is alarming.

Children in Poland face a poverty rate 6× lower than in Uruguay. Even countries with similar income levels — Estonia, Slovakia — perform dramatically better. The difference? Stronger universal child policies.

% children on <$6.85/day · 2021–22

Slovenia
0%
Poland
2%
Estonia
1%
Slovakia
6%
Chile
9%
Uruguay
13%
Costa Rica
22%
Per-child monthly transfer
$63
Uruguay (avg. 2023)
Poverty threshold per capita
$312
What families actually need
The Solution

4 policies.
Universal. Now.

Each policy is evidence-based, individually impactful, and together — transformative.

💳
Universal Child Benefit
6,000 UYU (~$150) per child under 18, every month, for every family — no means test.
−51%
reduction in
absolute child poverty
🥗
Universal School Meals
Free daily meals for all students in public preschool, primary and secondary schools.
−19%
reduction in
absolute child poverty
👶
Universal Parental Leave
One full year paid leave, split between both parents, at minimum wage — for all families including informal workers.
−49%
poverty among
infants under 1 year
🏫
Universal Childcare
High-quality care from end of parental leave to school age, with work-compatible hours.
−20%
additional poverty
reduction in the full package
The Impact

Together,
they transform.

72.3% poverty reduction with all 4 policies
Absolute child poverty drops from 19% to just 5.3% — the most substantial single-generation reduction achievable through policy.

Child poverty rate — step by step

Today
19%
+ Child Benefit
9.3%
+ School Meals
7.5%
+ Parental Leave
7.1%
+ Childcare
5.3%
Total reduction
−72.3%
⚖️
Gender equity
Fairer sharing of care
🎓
Better education
Nutrition + stability
🤝
No stigma
Universal, no means-test
The Cost

Affordable.
And getting
cheaper.

Spending rises from 5% to 8% of GDP — but Uruguay's shrinking child population means the additional cost is already on a downward path.

Child social protection · now
1.3%
Child social protection · reformed
2.7%
Education & childcare · now
2.6%
Education & childcare · reformed
3.8%

Additional cost as % GDP · 2023–2035

3.0% (2023) 1.5% (2035)

Uruguay's fertility rate fell from 2.0 → 1.3 children/woman (2016–22). The child population is shrinking — making this investment more affordable every year.

155,000+ children lifted out of povertyDirect, immediate benefit to the most vulnerable families
Better education & health outcomesStable income + nutrition + early care = lifetime human capital returns
More women in the workforceUniversal childcare & parental leave remove the care barrier that keeps mothers out of paid work
No means-testing = no exclusion errorsThe current system leaves the most vulnerable between the cracks. Universal policies don't.
Cost falls as the economy growsGDP growth and a smaller child population mean the portfolio becomes more affordable over time
The Conclusion

The tools exist.
The evidence is clear.

Uruguay has the wealth, the institutions, and the data to end child poverty within a generation. All it takes is a political commitment to four universal policies.

💳 Universal Child Benefit
🥗 School Meals
👶 Parental Leave
🏫 Childcare Services

Based on microsimulation of Uruguay's 2023 household survey (ECH). Published by the Learning for Well-Being Institute & UNICEF Uruguay, April 2025.