UK Spring Budget – Step forward on childcare, but no extra direct support for children in poverty

  • England childcare expansion creates opportunities for Scottish government to go “further and faster” with its fairer more generous offer, say campaigners.
  • UK Government must remove the two-child limit and benefit cap and increase child benefit “as a matter of utmost urgency”.

Responding to today’s Spring Budget, John Dickie, Director of the Child Poverty Action Group, said:

“Some of the Chancellor’s plans are welcome but some are really worrying. Many of the childcare changes announced are a big step forward and also create opportunities for the Scottish government to go further and faster with its currently more generous and fairer universal childcare offer. But the stringent UK job-search requirements for parents on universal credit (UC) are concerning and overall the package is far short of what struggling families needed as they face another year of high inflation. 
 
“There was no mention of the four million children living in poverty across the UK, a quarter of a million of them here in Scotland, and there was no extra, direct financial support for them. Without that investment, child poverty will continue to damage young lives and drag on our national growth.  The UK Government must as a matter of utmost urgency  remove the two-child limit and benefit cap and increase child benefit.  Any less and the effects of poverty will continue to stalk millions of children from cradle to grave."

Childcare

Mr Dickie welcomed the lifting of the cap on fees that can be reimbursed to parents on universal credit across the UK, and the switch to payment of childcare costs upfront rather than in arrears.  Commenting on the expansion of free places to children from nine months to two year olds in England, he added:

“Any new investment in early years childcare is welcome and long overdue. The eligibility criteria for these new places in England excludes low-income parents in jobs with low or variable hours and those preparing for their return to work, blocking children in the worst off families from accessing places.  The universal approach taken for three and four year olds in Scotland ensures all children can benefit, especially those in the lowest income families. The Scottish Government should use any funding consequentials to build on existing commitments and expand it’s universal offer to one and two year olds.
 
 “The promise of more before and after school care in England also potentially brings additional funding that Scottish government can use to press ahead with its commitment to expand school age childcare. We hope government will bring forward the detailed plans needed very soon."

Stringent job-search requirements

Mr Dickie criticised the new stringent job-search requirements on primary carers of children in families claiming universal credit (UC) despite these families already having one parent in work.

“For a Budget billed as back-to-work, this was more big stick than carrot and we need to see the big ideas that will help parents get the decent jobs that make work pay.  The government can and should help people to work when they’re able to but the Chancellor’s approach risks pressurising parents into low-paid, low-skilled, precarious work – at a time when two thirds of Scotland’s children in poverty are in working households.
 
 “It’s especially concerning that job-search requirements will be tightened for parents of young children on universal credit  with no recognition of the constraints on them as primary carers,  a shortage of funded  childcare places during job preparation and of funded training opportunities, no help with initial back-to-work costs like transport and no funding for the extra job centre staff and the training they need to give individualised advice. The UK Government is right to want to help people get better off through work but it also has to recognise that parents have caring responsibilities that can limit their work options. It’s time the DWP invested in real employment support with skills training and help with work-related costs - in place of quick-fire appointments where too often parents get little more than a question on how many jobs they’ve applied for.
 

“If it wants to help parents get ready to work, the Government should bring in a universal credit work allowance for second earners in families1  and invest in providing individualised employment support in job centres.”

Notes to editors

For more details or interviews on the implications of the Chancellor’s budget for families in Scotland contact John Dickie Director of CPAG in Scotland on 07795 340 618.

  • 1A universal credit ‘work allowance’ for second earners in households with children (often mothers who have been caring for children) would enable this group to keep a portion of their wages in full before universal credit starts to be withdrawn at a rate of 55p in the pound – as is the case for ‘primary earners’ in families on UC. Currently second earners entering work lose 55p in reduced UC from the first £1 they earn so the gains from work can be very low.