Our response to the Budget: Some of the Chancellor’s plans are welcome but some are worrying. Many of the childcare changes announced are a big step forward but the stringent job-search requirements for parents on universal credit (UC) are concerning and overall the package is far short of what struggling families needed from the Chancellor as they face another year of high inflation.
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.
Just over a third (34%) of people on universal credit who are subject to the benefit cap – which the Government claims incentivises work – are assessed by the DWP as not required to look for a job because they are caring for very young children, new FOI data for Child Poverty Action Group (CPAG) shows. A further 18% are already in work but don’t earn enough to reach the threshold for the cap to be lifted.
As the cost of living crisis continues to hit low-income households hardest, Child Poverty Action Group and the North East Child Poverty Commission are calling for changes to universal credit and benefit deductions rules in light of new data revealing the Government is clawing back over £80 million a month in deductions from families’ universal credit.
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.
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.
New DWP figures out today show 107,000 families are facing escalating costs as winter bites with their benefits capped. 56,000 have kids aged under five. And more than 32,000 of these capped families (over 110,000 children) are also subject to the two-child limit policy.
A three-judge panel of the Upper Tribunal has held that AT, an EU national with pre-settled status (limited leave to remain) but no qualifying EU right to reside in the UK for the purposes of universal credit, is entitled to rely upon the EU Charter of Fundamental Rights even after the end of the Brexit “transition period” (ie after 31 December 2020).