The harms of the cost of living crisis are multiplied by the benefit cap and two-child limit, flagship policies of the welfare reform agenda which sharply sever the relationship between need and support provided by our social security system.
Ten years since the benefit cap was introduced across Britain, new research shows families affected by the policy have as little as £44 a week to live on after they’ve paid housing costs.
Today’s annual poverty statistics show an estimated 350,000 more children were pulled into poverty last year, largely because the Government cut the £20 universal credit (UC) uplift half-way through the year. New CPAG analysis shows child poverty costs the country £39.5 billion a year.
The cost of child poverty extends beyond the physical and emotional hardship felt by children growing up in low-income families. In 2008, the total financial cost was estimated to be at least £25 billion a year. In 2023, it has risen to over £39 billion a year.
This is an important moment for the government to demonstrate how it will support families on a low income. Investing in social security protects those who need it most. This investment is highly cost-effective – reducing child poverty immediately and leading to improved education, employment and health outcomes, including life expectancy.
Just over a third (34%) of people on universal credit who are subject to the benefit cap – which the Government claims incentivises work – are assessed by the DWP as not required to look for a job because they are caring for very young children, new FOI data for Child Poverty Action Group (CPAG) shows. A further 18% are already in work but don’t earn enough to reach the threshold for the cap to be lifted.
Who is experiencing fuel poverty? What is the relationship between fuel poverty and income? And what is the impact of the mitigations put in place to support people with rising energy costs?