It’s a relief that benefits and the benefit cap will rise with inflation. But this is only the fourth time benefits have risen by inflation in the last ten years and as a result of austerity - that today the chancellor praised - there are almost 4 million kids living in poverty in the UK. Today’s package will not stop the ice from cracking under struggling families.
DWP figures out today show 4 million children are in households on universal credit facing big income cuts if benefits are not uprated with inflation in Thursday’s Autumn Statement. Twenty-nine per cent (1.15m) of these children are aged four or younger.
Cost of a child reaches almost £160,000 for couples, £200,000 for lone parents. 2021-2022 saw the biggest annual deterioration in living standards since 2012. The government must increase benefits with inflation at the Autumn Statement.
Families in 2022 are facing the greatest threat to their living standards in living memory. Much has been written about these pressures, but to put them into context, we need to understand what has been happening to children’s and families’ costs in recent years. The Cost of a Child reports have been produced annually for a decade, and this 2022 edition presents the latest evidence of what families need as a minimum, and how this compares to the actual incomes of low-income families.
Child Poverty Action Group, Age UK and Save the Children have produced a joint briefing on the importance of uprating all benefits and the state pension in line with inflation.
Lower-paid jobs – nursery assistants, street cleaners, van drivers – gain less from the NI cut so will see a bigger cumulative loss to income if benefits increase with earnings instead of inflation.
Two hundred thousand more children will be pushed into poverty if benefits are uprated by wages rather than inflation, new analysis from Child Poverty Action Group (CPAG) finds. Almost all these children will be in families where at least one parent is working.
The UK government’s benefit cap, two child limit and young parent penalty all undermine Scotland’s national child poverty mission. They hurt the very families rightly identified as ‘priority groups’ in the Scottish government’s child poverty plan. Child Poverty Action Group in Scotland, One Parent Families Scotland and The Poverty Alliance have organised a fringe meeting at the SNP conference to discuss the impact on children and families and discuss how the policies can be challenged at Westminster, and their effects mitigated by Holyrood and local government.