We know from our Cost of a Child research that even when two parents work full time on the minimum wage, a family will be £47 a week short of the income they need to meet the basic costs of raising a child. 70 per cent of poor children live in working families.
Poverty restricts children’s opportunities, and can mean that they are left behind. We need investment in children to ensure they are released from the grip of poverty. This means taking action now to:
- restore the child element in universal credit, including the higher element for first children, and increase child benefit by at least £5 a week because it has lost 23% of its value since 2010;
- lift the two-child limit, which will otherwise push 300,000 children into poverty and one million more into deeper poverty by 2023/24;
- remove the benefit cap, which largely affects lone parents with young children who are least able to escape the cap through work.