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.
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.
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.
Families in 2022 are facing the greatest threat to their living standards in living memory. Much has been written about these pressures, but to put them into context, we need to understand what has been happening to children’s and families’ costs in recent years. The Cost of a Child reports have been produced annually for a decade, and this 2022 edition presents the latest evidence of what families need as a minimum, and how this compares to the actual incomes of low-income families.
Child Poverty Action Group, Age UK and Save the Children have produced a joint briefing on the importance of uprating all benefits and the state pension in line with inflation.