Last month, chancellor Rishi Sunak stood before the dispatch box and delivered his third and most significant budgetary response to the current cost of living crisis. As he announced the measures, he pledged: 'We need to make sure that for those whom the struggle is too hard…and for whom the risks are too great…they are supported… We will make sure the most vulnerable and the least well off get the support they need at this time of difficulty.'
‘This government will not sit idly by whilst there is a risk that some in our country might be set so far back they might never recover’, said chancellor Rishi Sunak in the opening remarks to his statement this afternoon. But does this ring true? Did his announcements offer a sign of hope for families?
"It’s a relief that government is finally waking up to the fact that families need more support and today’s announcement of interventions through the benefits system is a good start. But with almost 4 million children living in poverty the chancellor is kidding himself if he thinks that the problem is temporary or that the package he offered today will stop people finding themselves so far back that they never recover. If the chancellor is serious about supporting those who are struggling then he will need to make long-term changes to the structure of the social security system and restore the value of benefits to something that families can really live on."
Is the benefit system financially adequate? The honest answer to that has to be no. Due to this fact my family along with millions of others are being plunged deeper into debt, desperation and an era of complete poverty.
An estimated 1.8 million households on universal credit (UC) are having to live on significantly less than they are entitled to because the DWP is deducting debt repayments from their benefits at an unaffordable rate, according to new CPAG estimates. There are an estimated 2 million children in these households.
New data released today shows that 4.1 million households were claiming universal credit (UC) in February 2022. Benefits were recently increased by less than half the rate of inflation, meaning these families saw the real value of their UC fall by £660 a year on average. And while benefit levels sit at historic lows, an estimated 1.8 million households are receiving an average of £61 less each month than they are entitled to because of automatic deductions from their UC payment.
With 38 bills but no direct help with spiralling costs, this speech was a far cry from what struggling families needed to hear today. Government offered no short term comfort for parents struggling to feed their kids in the face of rocketing prices, and no long term vision for ending child poverty.
The Queen’s Speech was a missed opportunity for the government to introduce legislation that would support people in the short term and improve living standards in the longer term.
London is one of the greatest and richest cities in the world. But for too many Londoners and their children, proximity to the city’s affluence does not mean sharing in this wealth – adequate employment, affordable housing and fit-for-purpose childcare are often out of reach. In fact, after accounting for housing costs, London has the highest rate of child poverty of any region in the UK. We asked our London Calling panel what they want their councillors to prioritise. They highlighted five main themes: childcare, free school meals, housing, children’s activities and community engagement.
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.