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.
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.
"The cost of living crisis has pushed many families to the brink as a difficult winter looms. With around 2 million children living in households affected by deductions, the Work and Pensions Select Committee is right to say that now is time to pause these repayments.
Forecasters have increased their estimate for the January 2023 energy price cap to £5,386 for the typical bill. If as expected, this estimate is accurate, families are now facing a gaping £1,200 shortfall for energy costs alone in the months up to April 2023.
Low-income families will have an estimated £1,000 shortfall for energy costs alone in the year to April 2023, if as expected Ofgem’s price cap rises to £3,554 in October, new analysis from Child Poverty Action Group (CPAG) shows. An announcement on the new cap is due tomorrow.
This paper is a revision of the analysis which was published by Child Poverty Action Group on 1 August. On 2 August new gas and electricity price cap estimates were published for October 2022 and January 2023 which slightly lowered the estimates for October and slightly increased them for January.
By January 2023 over half of households in the UK (15 million) will be in fuel poverty – spending over 10 per cent of net income on fuel. They will on average be spending £38.25 above the 10 per cent threshold. There are big regional variations in fuel poverty ranging from 47.5 per cent in London to 71.7 per cent in Northern Ireland.
The Front-loaded Child Benefit Bill is a Private Members’ Bill introduced by Lord Farmer (Conservative). It aims to allow recipients of child benefit to receive, if they wish, a higher rate of child benefit when a child is younger, in exchange for a lower rate when the child is older. This would be an alternative to the current system whereby a flat rate is paid throughout childhood. The second reading will take place on Friday 8 July.