The harms of the cost of living crisis are multiplied by the benefit cap and two-child limit, flagship policies of the welfare reform agenda which sharply sever the relationship between need and support provided by our social security system.
On the sixth anniversary of the two-child limit, a Child Poverty Action Group (CPAG) survey finds widespread suffering and hardship among families affected by the policy with parents struggling to meet children’s basic needs as living costs soar.
This briefing, from CPAG, End Child Poverty, the Church of England, and the Benefit Changes and Larger Families project, marks the sixth anniversary of the two-child limit.
Today’s annual poverty statistics show an estimated 350,000 more children were pulled into poverty last year, largely because the Government cut the £20 universal credit (UC) uplift half-way through the year. New CPAG analysis shows child poverty costs the country £39.5 billion a year.
The cost of child poverty extends beyond the physical and emotional hardship felt by children growing up in low-income families. In 2008, the total financial cost was estimated to be at least £25 billion a year. In 2023, it has risen to over £39 billion a year.
This is an important moment for the government to demonstrate how it will support families on a low income. Investing in social security protects those who need it most. This investment is highly cost-effective – reducing child poverty immediately and leading to improved education, employment and health outcomes, including life expectancy.
Who is experiencing fuel poverty? What is the relationship between fuel poverty and income? And what is the impact of the mitigations put in place to support people with rising energy costs?