The latest poverty statistics show that in 2023/24 there were a record 4.5 million children in relative poverty (after housing costs), a rise from 4.3 million in 2022/23. This is 31 per cent of children.
Between now and the end of 2025, thousands of constituents will have their existing benefit payments switched off and replaced with universal credit. The process involves several hurdles; in the worst-case scenario, a family could be left without any income at all. This briefing explains how the process works, issues constituents are likely to face, and how MPs can carry out effective casework on this topic.
The DWP sensibly began rolling out managed migration to tax credit-only claimants, who have simpler benefit entitlements to calculate, are more likely to have savings to draw on and less likely to be vulnerable. Now it is proceeding to a much more complex and vulnerable claimant group. With the self-imposed tax credit deadline looming, if the DWP does not act now, it appears the more vulnerable claimants will be at the greatest risk of falling victim to a sprint finish.
Since our last report was published, the DWP has brought forward the managed migration of 800,000 employment and support allowance (ESA) claimants who do not get tax credits, which had been delayed until 2028.
On Thursday 21 March, the annual Households Below Average Income (HBAI) report will be released by the Department for Work and Pensions. Estimates are provided for average incomes, income inequality, and for the number and percentage of people living in poverty. The statistics are the UK’s official source of poverty estimates and, with a larger sample size than other surveys, are the main source of data on household and individual incomes.
The cost of child poverty extends beyond the physical and emotional hardship felt by children growing up in low-income families. In 2008, the total financial cost was estimated to be at least £25 billion a year. In 2023, it has risen to over £39 billion a year.
This briefing summaries the findings of two papers from the Benefit Changes and Larger Families research study which explore whether the two-child limit has affected families’ decisions about how many children to have.
