Abolishing the two-child limit is, by far, the most cost-effective way of reducing child poverty, and if done this year will transform the lives of millions of children and families by the end of this parliament.
The latest poverty statistics show that in 2023/24 there were a record 4.5 million children in relative poverty (after housing costs), a rise from 4.3 million in 2022/23. This is 31 per cent of children.
The package of reforms set out yesterday will result in a net reduction in social security expenditure of £5 billion by 2029/30. This is the biggest cut to disability benefits in a generation, and will push children and families into poverty, and reduce living standards for many.
There are 4.3 million children living in poverty in the UK today. These are record numbers, and without government action, child poverty is set to rise further over the coming years. The government has been clear about its commitment to drive down child poverty, and the commitment to developing a UK-wide child poverty strategy is a hugely positive step. It creates an opportunity to realise some of the change that children, families and the communities they live in so desperately need. However, a well-intentioned strategy will do little to effectively tackle child poverty if sufficient resources are not allocated. Increasing social security is the most cost-effective way to raise living standards and lift families out of poverty, and this means the priority for investment in the strategy must be the social security system.
This briefing provides information on policies announced in the Children’s Wellbeing and Schools Bill, alongside policy areas where opportunities to support children’s wellbeing were missed in this legislation.
This final report outlines the issues relating to managed migration as the DWP has begun sending migration notices to claimants with much lower incomes and who are likely to be more vulnerable. It highlights how the support offered can be improved to ensure that those facing the greatest barriers are able to make and sustain a UC claim. Lastly, is looks at the experiences of people who have completed the move to UC to highlight how UC can work better for everyone claiming.
This Budget delivered some partial relief for the 4.3 million children and their families who are living in poverty in the UK today. Changes to deductions in universal credit, which will allow low-income families to keep more of their universal credit payment each month, and the expansion of breakfast clubs in primary schools are particularly welcome. However, this Budget was a missed opportunity to take some of the bold action that is urgently needed on child poverty.
