Our social security system, like our NHS, should be there for us all, especially those who need it most. It needs updating, so it works in today’s world. By the time it is fully rolled out, half of all children in the UK will live in a household claiming universal credit (UC). With some financial investment and operational changes, UC can be the safety net that families need.
Racial inequalities in child poverty are particularly stark, with over half of children from Black, Pakistani and Bangladeshi backgrounds likely to grow up in poverty. Economic structures that reinforce gender inequality and entrench systemic racism mean that certain groups, including women, children and Black and minority ethnic families are much more likely to be living in poverty.
Potential second earners in couple families, usually mothers, face high barriers to employment. Mothers typically face more barriers to work than fathers in couples, particularly because of issues relating to childcare and time spent out of the labour market due to caring responsibilities. To evaluate barriers to work faced by this group and identify solutions to these barriers, Child Poverty Action Group (CPAG) designed and delivered the Your Work Your Way project – an employment support scheme that worked with 70 potential second earners in couples.
A report commissioned by the Child Poverty Action Group (CPAG) in Scotland from the Centre for Research in Social Policy at Loughborough University has found a widening gap between the cost of raising a child in Scotland and actual family incomes, despite the significant impact of Scottish government policies and lower childcare costs.
Families in 2022 are facing the greatest threat to their living standards in living memory. Much has been written about these pressures, but to put them into context, we need to understand what has been happening to children’s and families’ costs in recent years. The Cost of a Child reports have been produced annually for a decade, and this 2022 edition presents the latest evidence of what families need as a minimum, and how this compares to the actual incomes of low-income families.
Under the two-child limit, parents are not entitled to any extra support through universal credit or child tax credit to help with raising a third or subsequent child born after 6 April 2017. This means they lose out on up to £2,935 a year, and puts families’ budgets under enormous strain. Five years after the introduction of the two-child limit, an estimated 1.4 million children in 400,000 families are now affected by the policy. Unless it is abolished, the number of children affected will reach 3 million, as more children are born under the policy.
Emergency support plays a small but vital role in the social security system. It is there to help families through one-off shocks that cause a sudden drop in income or increase in costs, such as the onset of a health problem or the washing machine breaking down. But, in practice, many families are not getting the support they need when they need it, and this is contributing to the rising demand for food banks.
Child Poverty Action Group’s annual cost of a child report looks at how much it costs families to provide a minimum socially acceptable standard of living for their children. Since 2012, this report series has systematically monitored the minimum cost of a child. This report updates those calculations for 2021 and outlines the factors affecting the latest figures. The total cost of raising a child to the age of 18 now stands at £160,692 for a couple and £193,801 for a lone parent.