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.
The Scottish Government’s announcement this week of increased funding for discretionary housing payments (DHPs) to mitigate the benefit cap as fully as possible is hugely welcome. It is vital now that people affected by the benefit cap apply to their local authority as soon as possible and ask for a backdate to the beginning of this year.
We welcome the commitment from the Scottish government that tackling child poverty is a top priority. Scottish government policies are working. However, soaring inflation and real terms UK benefit cuts in 2022 mean the gap between family incomes and the minimum cost of raising a child is widening horribly. It is more important than ever that all budget decisions are developed through a child poverty lens to understand the direct and indirect impacts on low-income families.
Prior to COVID-19, there were more than four million children living in poverty in the UK – that’s nine children in a classroom of 30. In London, that number rises to 11. While the full economic impact of the pandemic is yet to be seen, we know that low-income households are bearing the brunt, and for families living in the capital things are likely to get worse before they get better. Even prior to COVID-19, the high cost of rent, childcare and travel made it very difficult for London families on low incomes to cover basic costs. In addition, families with children have been hit the hardest by cuts to the social security system, squeezing family budgets even further. In the face of this, our public services have a crucial role to play in tackling child poverty and ensuring children and families recover from the pandemic.