As the cost of living crisis continues to hit low-income households hardest, Child Poverty Action Group and the North East Child Poverty Commission are calling for changes to universal credit and benefit deductions rules in light of new data revealing the Government is clawing back over £80 million a month in deductions from families’ universal credit.
New DWP figures out today show 107,000 families are facing escalating costs as winter bites with their benefits capped. 56,000 have kids aged under five. And more than 32,000 of these capped families (over 110,000 children) are also subject to the two-child limit policy.
A three-judge panel of the Upper Tribunal has held that AT, an EU national with pre-settled status (limited leave to remain) but no qualifying EU right to reside in the UK for the purposes of universal credit, is entitled to rely upon the EU Charter of Fundamental Rights even after the end of the Brexit “transition period” (ie after 31 December 2020).
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.
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.
"Despite his rhetoric about supporting families, this was in reality a statement for the 1 per cent, saying more about bankers’ bonuses than helping hungry kids..."