Universal credit (UC) claimants are not always getting extra amounts of UC they’re entitled to when they become eligible for some other benefits because of poor data-sharing within the DWP.
Tackling child poverty in Scotland is a priority for the Scottish government, and the government's policies are working to reduce child poverty. However more needs to be done to ensure Scotland meets its legally binding child poverty targets. We have set out what the Scottish government's spending priorities should be to ensure child poverty targets are met.
An estimated 1.8 million households on universal credit (UC) are having to live on significantly less than they are entitled to because the DWP is deducting debt repayments from their benefits at an unaffordable rate, according to new CPAG estimates. There are an estimated 2 million children in these households.
New data released today shows that 4.1 million households were claiming universal credit (UC) in February 2022. Benefits were recently increased by less than half the rate of inflation, meaning these families saw the real value of their UC fall by £660 a year on average. And while benefit levels sit at historic lows, an estimated 1.8 million households are receiving an average of £61 less each month than they are entitled to because of automatic deductions from their UC payment.
Our submission highlights that children who already faced a higher risk of poverty have been disproportionately impacted by the pandemic and will be particularly vulnerable during economic recession. Rising child poverty places high costs on society as a whole. It should therefore be of the utmost priority that families with children are able to easily access adequate financial support.
Prior to COVID-19, there were more than four million children living in poverty in the UK – that’s nine children in a classroom of 30. In London, that number rises to 11. While the full economic impact of the pandemic is yet to be seen, we know that low-income households are bearing the brunt, and for families living in the capital things are likely to get worse before they get better. Even prior to COVID-19, the high cost of rent, childcare and travel made it very difficult for London families on low incomes to cover basic costs. In addition, families with children have been hit the hardest by cuts to the social security system, squeezing family budgets even further. In the face of this, our public services have a crucial role to play in tackling child poverty and ensuring children and families recover from the pandemic.