CPAG in Scotland’s Early Warning System has been operating for ten years! Over Challenge Poverty Week we are looking back at some of the social security events in this period, key findings from the Early Warning System and how they have influenced policy and practise.
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.
Several government ministers have churned out a line about work being the best route out of poverty, but does it hold any truth? The evidence submitted to the All-Party Parliamentary Group (APPG) on Poverty for its report suggests that this is far from the case.
A family’s ability to get universal credit is often based not on their actual circumstances, but on a fictional version of their circumstances. Welfare rights worker Carri Swann explains.
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.
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.'
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.
Universal credit (UC) is now the main working-age benefit in the UK. Since its inception, UC has been plagued with administrative issues and budget cuts and, as a result, its early promise to reduce poverty has yet to be realised. When the pandemic hit, swift changes were needed to make UC fit for purpose including an increase in the amount of financial support provided and a relaxation of some of its most punitive rules. However, the vast majority of these positive changes have already been reversed, or are due to be reversed in the coming months.
This joint report from CPAG, the Church of England and the Welfare Reform and Larger Families research project presents the latest estimates of the number of families affected by the two-child limit, and provides an insight into the impact of the policy using survey data from families directly affected by it. It is a continuation of a series of annual reports tracking the impact of this policy over time.