The paper analyses the effects of the Great Recession on child poverty in Hungary. The authors find that the increase in child poverty in the first phase of the crisis (2007–10) was driven by labour market trends, while the (weakened, but still functioning) automatic stabilizers reduced the magnitude of these effects. By contrast, in the second phase (2010–13), labour market processes started to improve, though the shift towards a regressive social policy regime contributed to increased poverty rates via the reduced poverty reduction impacts of cash benefits. In their new research since their last account the authors find that both relative poverty rate and material deprivation rate of children have markedly decreased between 2013 and 2017. Also, the poverty reduction effect of welfare transfers improved recently. The paper calls for new research to better understand trends and drivers of child poverty decline.