Disabled children are significantly more likely to grow up in poverty than their non-disabled peers. We used longitudinal data from Waves 3–7 (2001–2005) of the UK Families and Children Study to explore the relationship between the presence of a disabled child in the family and poverty transitions. When compared to other families, families supporting a disabled child are more likely to be exposed to persistent or recurrent poverty, less likely to escape from an episode of poverty and more likely to descend into poverty. However, statistically controlling for the effects of salient family characteristics either attenuates, eliminates or reverses these associations. That is, when compared to other families with similar levels of personal and social resources, families supporting a disabled child are no more likely to escape from or descend into poverty than other families. Results are discussed in relation to the need for social policy to invest in strengthening the broader capabilities of families of disabled children.