Today’s annual poverty statistics show an estimated 350,000 more children were pulled into poverty last year, largely because the Government cut the £20 universal credit (UC) uplift half-way through the year. New CPAG analysis shows child poverty costs the country £39.5 billion a year.
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.
Official Scottish government poverty statistics show 250,000 children (24% of all children) were still living in poverty in Scotland in the period 2019 to 2022
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.
Over 70 charities, unions, faith groups, health professionals and social policy experts have joined forces today to call on the SNP leadership contenders to keep child poverty a top government priority if they become First Minister.
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.
The Scottish Government’s announcement this week of increased funding for discretionary housing payments (DHPs) to mitigate the benefit cap as fully as possible is hugely welcome. It is vital now that people affected by the benefit cap apply to their local authority as soon as possible and ask for a backdate to the beginning of this year.
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.