Households with children are at a higher risk of poverty than other households. Large families and single parents are at the highest risk of fuel poverty.
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.
It’s right that benefits are uprated as usual but this should never have been in doubt and legislation mandating inflationary increases is needed as a basic protection for living standards. Struggling families have been worrying themselves sick for months about whether an unmanageable income cut was coming in order to provide the government with a rabbit-out-of-the-hat moment.
On 1 October, energy bills for a typical household were due to rise to £3,549 a year, nearly treble the cost a year before. The cost was due to jump again in January 2023. But in September the government announced that the average bill would be capped at £2,500 a year for the next two years. What impact will this have on fuel poverty, defined as spending more than 10 per cent of net income on fuel? How many households are spending even greater proportions of their income on fuel? And who will be worst affected by rising prices?
Today we publish our third annual report ‘The Cost of a Child in 2014’, written by Donald Hirsch from the Centre for Research in Social Policy at Loughborough University and funded by JRF. It draws on the Minimum Income Standard project (MIS) to establish how much families need to cover their basic needs like food, clothes and shelter, and to participate in society.
