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Child poverty increased dramatically during the COVID-19 pandemic. In 2020 alone, the number of children suffering from poverty in the EU increased by 19 percent, or close to 1 million. Left unaddressed, this would not only affect individuals’ life prospects and well-being but also have long-term economic implications. This paper argues that, to limit this potential scarring effect of the pandemic, policies should be deployed to reduce rapidly the number of children affected by poverty and mitigate the long-term impact of poverty. Reducing the number of children affected by poverty can be achieved by (i) labor policies and reforms that increase parental work and the labor income of poor parents and (ii) fiscal spending on family and children that can have a powerful and immediate impact. These policies need to be complemented by public investment in education and childcare, health, and housing to mitigate the long-term impact of child poverty.

Macroeconomics --- Economics: General --- Poverty and Homelessness --- Diseases: Contagious --- Social Services and Welfare --- Public Finance --- National Government Expenditures and Welfare Programs --- Health: Government Policy --- Regulation --- Public Health --- Returns to Education --- Measurement and Analysis of Poverty --- Government Policy --- Provision and Effects of Welfare Program --- Demographic Economics: General --- Human Capital --- Skills --- Occupational Choice --- Labor Productivity --- Job, Occupational, and Intergenerational Mobility --- Promotion --- Welfare, Well-Being, and Poverty: General --- Health Behavior --- Aggregate Factor Income Distribution --- Economic & financial crises & disasters --- Economics of specific sectors --- Poverty & precarity --- Infectious & contagious diseases --- Social welfare & social services --- Public finance & taxation --- Poverty --- COVID-19 --- Health --- Income --- National accounts --- Poverty reduction --- Social protection spending --- Expenditure --- Currency crises --- Informal sector --- Economics --- Communicable diseases --- Expenditures, Public --- Covid-19