Eleanor Lawrie, a social affairs reporter, has recently highlighted a concerning issue in the UK – child poverty has hit its highest level since 2002. According to the Department for Work and Pensions, 4.45 million children were living in households with relative low income after deducting housing costs in the year leading up to April 2024, representing 31% of children in the country. This figure has surged by 100,000 children from the previous year and has been on a sharp incline since 2021, with predictions from the Child Poverty Action Group estimating that 4.8 million children will be in poverty by 2029-30.
In response to this alarming trend, the Child Poverty Action Group has urged the government to eliminate the two-child benefit limit in the upcoming child poverty strategy and to halt recent proposals for broader benefit cuts. The two-child cap restricts parents from claiming universal credit or child tax credit for a third child, except for a few exemptions. The definition of relative poverty, which is calculated before and after housing costs, pertains to individuals living in households with income below 60% of the median average figure in the country. Additionally, the Scottish government has failed to meet its legal targets for reducing child poverty by 2023-24.
Principal economist Adam Corlett from the Resolution Foundation has emphasized the severity of the situation, noting that almost a third of children in the UK are currently living in poverty. He highlighted the potential impact of new benefit cuts and a bleak outlook on living standards, which could reduce incomes for the poorest half of working-age households by £500 over the next five years. Work and Pensions Minister Sir Stephen Timms acknowledged the significant challenge posed by the high level of child poverty and pledged to address it. Chancellor Rachel Reeves also announced changes to the benefits system, including reductions in incapacity benefits for new claimants and stricter criteria for the Personal Independence Payment, which could push an additional 250,000 people, including 50,000 children, into relative poverty.
The West Midlands and London have reported the highest child poverty rates after housing costs over the three years leading up to 2024. Families with one child had a poverty rate of one in five, while those with three children or more experienced a rate of 44%. The Resolution Foundation has echoed calls to eliminate the two-child benefit limit and extend free school meal entitlement to all families on Universal Credit. With the new government in power since the covered period, a child poverty task force has been established to address the root causes of the issue, with plans to publish a cross-government child poverty strategy in spring 2025. The Department for Work and Pensions has underscored the importance of well-paid, secure work in lifting families out of poverty, emphasizing ongoing efforts to reform the welfare system to support individuals in finding stable employment and improving living standards
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