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.'
The Queen’s Speech was a missed opportunity for the government to introduce legislation that would support people in the short term and improve living standards in the longer term.
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.
In August, Child Poverty Action Group and the Church of England published a report, Poverty in the Pandemic, which offered a glimpse into the lives of low-income families trying to survive the impact of the coronavirus pandemic. This report provides an update on how families with children are managing financially, based on an additional 393 online survey responses received in the period since the last report was published, up to the end of November 2020.
The year 2020 has put unprecedented pressures on families bringing up children. Parents across the world have taken on new challenges due to the coronavirus pandemic in keeping their children healthy and safe as well as properly fed, educated and entertained at a time when they have been required to stay at home, and when many families’ livelihoods have been threatened. Our cost of a child report looks at what items families need to provide a minimum socially acceptable standard of living for their children in 2020.
To understand the impact of child poverty on the lives of children and families in England better, CPAG, the Child Welfare Inequalities Project (CWIP) and the Association of Directors of Children’s Services (ADCS) conducted a survey of social workers between January and March 2020 to ask them about the experiences of the families they work with.
CPAG and the Church of England has produced a new report on the impact of the two-child limit after three years. Since 6 April 2017, families having a third or subsequent child are no longer entitled to additional support through child tax credit and universal credit.