Child Poverty Action Group

The high levels of child poverty in the UK are currently costing the country at least £29 billion a year – or £1,098 per household – according to new research released today by Donald Hirsch of Loughborough University (updating his 2008 study for the Joseph Rowntree Foundation).

The estimate includes the costs of policy interventions required in childhood to correct for the effects of poverty, as well as the longer term losses to the economy which result from poor children’s reduced productivity, lower educational attainment and poorer physical and mental health.

Responding to Walking the Breadline, a new report published today on UK food poverty by Oxfam and Church Action on Poverty, the Head of Policy for Child Poverty Action Group, Imran Hussain, said:

“It’s a national scandal that half a million British people are now having to turn to food aid. It’s a problem that has quickly escalated and shows that something has gone badly wrong with the safety net that is supposed to help families in need. It is particularly concerning that more and more of the families seeking food aid are actually in work, but on poverty pay and facing cuts to their tax credits.

Responding to the publication today of new projections for UK child poverty rates, prepared by the Institute for Fiscal Studies for the Northern Ireland Executive (OFMDFM), Alison Garnham, Chief Executive of Child Poverty Action Group, said:

“We always put our children’s needs first in family life, and we should do as a nation too. But today’s dire projections reveal we are in danger of failing the next generation.

Commenting the Unicef Report Card on child wellbeing published today, Imran Hussain, Head of Policy for Child Poverty Action Group, said:

“After years of steadily catching up on our European neighbours, the wellbeing of our children now looks set to fall behind as a result of the government's austerity policies.

“The evidence is now undeniable that investing in children in the first decade of the century worked. The wellbeing and life chances of our children caught up with other countries considerably because we did the right thing and made it a political priority. But we are now expecting absolute child poverty to rise by 600,000 children during the current parliament.

Low income households will have their family finances hit by multiple cuts this month. The main cuts are:

1. Bedroom Tax (housing benefit penalties for excess rooms in social sector) - £490m
2. Council tax benefit localised and devolved budgets cut by 10% - £485m
3. Local housing allowance annual uprate at CPI (instead of RPI) - £90m
4. Benefit cap introduced - £290m
5. Tax credit disregard for in-year increases reduced to £5,000 - £455m
6. Working age benefits and tax credits: uprating capped at 1% - £505m

Total losses - £2,315m

Responding to the findings of the Poverty and Social Exclusion report, The Impoverishment of the UK, Alison Garnham, Chief Executive of Child Poverty Action Group, said:

 “This is a landmark study; the largest and most authoritative study on poverty and deprivation conducted in the UK. At nearly every turn it paints a grim picture of an enormous rise in child poverty and deprivation that is sending the living standards of huge numbers of children spiralling downwards.

Responding to today’s Budget Statement, Alison Garnham, Chief Executive of Child Poverty action Group, said:

“The Chancellor described it as a budget for families with children looking to work hard and aspiring to get on, but most low income families have very few reasons to be cheerful and plenty to be fearful. Child poverty is set to increase by 600,000 children during the Coalition’s time in office, and there is nothing much in the Budget that will change this course.

Responding to the government’s announcement that they will cover up to 85 per cent of childcare costs for some low-income families eligible for universal credit (UC) from April 2016, Alison Garnham, Chief Executive of Child Poverty Action Group said:

“We welcome this government recognition that the high costs of childcare in the UK act as a significant deterrent for all families who want to get back to work or work longer hours. But this scheme would do very little to help the families that need it most, or to reduce child poverty.

New analysis for Child Poverty Action Group by Landman Economics has found that an increase of 600,000 children in absolute child poverty is likely between 2010 and 2015.

The analysis is made on the basis of the Coalition tax and benefit spending policies implemented since 2010, and planned to be implemented up to 2015. It is net of any improvements to child poverty from Universal Credit.

The Department for Work and Pensions has issued an ‘urgent bulletin’ announcing that the Secretary of State has decided to drop his pursuit of an appeal at the Supreme Court on a case he had lost at the Court of Appeal.