Today, children are already twice as likely to be poor as pensioners. According to the Institute for Fiscal Studies, child poverty is set to soar to 5.1 million children by 2022 – a 42 per cent rise over ten years.
New cuts limiting universal credit to the first two children in a family – starting Thursday April 6th - will push another 200,000 children below the official poverty line, new analysis by CPAG and the Institute for Public Policy Research (IPPR) shows.
The Work and Pensions Select Committee was so concerned about evidence heard during its inquiry into progress with the implementation of universal credit, that it has re-opened its inquiry to gather more evidence.
This briefing presents some of the analysis to be published in a forthcoming report assessing the impacts of cuts to benefits from 2010 to 2020. This briefing focuses on changes to universal credit since it was first legislated in 2012 and their effects on family incomes, work incentives and poverty rates. It also includes the effect of real-terms cuts to child benefit which took place during the same period.
CPAG has responded to the government's consultation on exceptions to the two child limit for payments of tax credits and universal credit. CPAG is opposed to the policy in its entirety, because it will deny children their entitlement to the support needed to provide a decent standard of living, and is expected to increase child poverty.
This briefing describes how the cuts to universal credit work allowances reduce the gains from work, making it harder – not easier – for working parents to derive more of their income from earnings, in much the same way as the now abandoned tax credit cuts would have.