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.
Our interviews show that claimants did not have the information they needed or wanted to understand how moving to UC would affect them. Such misinformation and misunderstanding are likely to be reasons some people are not moving to UC despite having a strong financial incentive to do so.
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.
Data we obtained via a freedom of information request reveals that a third (34 per cent) of people subject to the benefit cap, which the government claims is a work incentive, are not expected to seek employment because their circumstances prevent them from working. Rather than being a work incentive, it is pushing children deeper into poverty.
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.
A report commissioned by the Child Poverty Action Group (CPAG) in Scotland from the Centre for Research in Social Policy at Loughborough University has found a widening gap between the cost of raising a child in Scotland and actual family incomes, despite the significant impact of Scottish government policies and lower childcare costs.