Eleven major charities have today written to the Chancellor urging her to make a commitment in next week’s spending review to abolish the two-child limit and benefit cap in the Autumn Budget. The charities, including Child Poverty Action Group, Citizens Advice, Save the Children UK, Trussell and The Children’s Society, work with children and low-income families. Their letter warns that the two-child limit has already pulled 37,000 children into poverty since the government took office.
What is the evidence on the impact of the benefit cap on children and families in poverty? In particular, how do high housing costs affect experiences of the cap and people's ability to escape it? And why is it so important that the government scraps the policy?
Many children and families entered the pandemic facing poverty and structural disadvantage, and were failed – and continue to be failed - by the inadequacy of the economic measures introduced in response to the pandemic, Child Poverty Action Group (CPAG) told Module 9 of the Covid-19 inquiry today.
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.
In line with inflation, today benefits are being uprated by 6.7 per cent. For the first time in four years, the local housing allowance has gone up, improving housing support for many private renters. But one group will not see any improvement in support at all: around 77,000 families are affected by the ‘benefit cap'.
A change is coming to child benefit. This Saturday, more families will become eligible as the earnings threshold at which you start losing child benefit increases. The government has finally recognised that ‘the way we treat child benefit in the tax system is confusing and unfair’ and proposed two changes to try to simplify it. It’s ironic that this confusion and unfairness was introduced by the government in the first place.
For almost fifteen years, the four million kids from poor families have been at the bottom of the pile and today is no different. This was a Budget all but blind to buckling family budgets and broken public services and will leave a legacy of crumbling classrooms, cold homes, and empty tummies.
Our pre-Budget briefing details how best to invest financial support in children to reduce child poverty and give every child the chance to fulfil their potential.
