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.
A change is coming to child benefit. This Saturday, more families will become eligible as the earnings threshold at which you start losing child benefit increases. The government has finally recognised that ‘the way we treat child benefit in the tax system is confusing and unfair’ and proposed two changes to try to simplify it. It’s ironic that this confusion and unfairness was introduced by the government in the first place.
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.
