Advertisement
Social Justice

Labour must invest in benefits system to lift children out of poverty, shameful report finds

Scotland’s benefits system is providing greater protections for children, and that means child poverty levels there are projected to fall. But in the rest of the UK, child poverty levels are likely to remain the same without investment in social security system, charities warn

The government is laser-focused on growth in the UK – but a major report has found that this will result in little progress on child poverty unless there is also investment in the social security system.

The Joseph Rowntree Foundation‘s annual poverty report has revealed that only Scotland is expected to see child poverty rates fall by 2029, indicating the power of a welfare policies in tackling poverty.

Scotland has pledged to scrap the two-child limit on benefits from 2026, which will boost the incomes of larger low-income families, many of whom have been trapped in poverty by the policy.

It also has the Scottish child payment, which is given to low-income families with children under the age of 16 in Scotland. It is a weekly £25 top-up to the UK child benefit and any other benefit people receive.

These policies mean that child poverty levels in Scotland are 7% lower than the rest of the UK currently and are expected to be 10% lower by 2029.

Almost one in three children are still expected to be in poverty in England, but in Scotland the figure will be closer to one in five children in poverty.

Advertisement
Advertisement

Paul Kissack, chief executive of the Joseph Rowntree Foundation, says:“Growing levels of poverty and insecurity are acting as a tightening brake on growth and opportunity. We can’t expect children to be ready for school or able to learn if they’re going without the basics.

“Growing up in poverty can also lead to poor health, increasing pressure on the NHS. Child poverty will only be driven down through focused, deliberate and determined policy action. Even very strong economic growth won’t automatically change the picture.”

The Joseph Rowntree Foundation warns the government that a strong economy can increase wages and employment but will not in itself reduce poverty.

Meanwhile, it is estimated that lifting the two-child limit on benefits would lift hundreds of thousands of children out of poverty.

Children in large families with three or more children (45%) have higher rates of poverty compared to all children (30%). Children in lone parent families are also more likely to be living in poverty (44%).

The Labour government is set to publish its cross-government child poverty strategy this year, and has promised to address “systemic drivers” of poverty, such as housing and employment.

Advertisement

A government spokesperson said: “No child should be in poverty – that’s why our ministerial taskforce is exploring all levers available across government to give children across the UK the best start in life, while our plan for change will raise living standards across the country.  

“As we fix the foundations of the economy, we’re increasing the living wage, uprating benefits and supporting 700,000 of the poorest families with children by introducing a fair repayment rate on universal credit deductions to help low-income families and make everyone better off.”

However, the government has also pledged to slash the welfare bill.

Kissack said: “Policy action must start with the system designed to help people meet their costs of living – social security. At the moment that system is not only failing to do its job but, worse, actively pushing some people into deeper poverty, through cruel limits and caps. The good news is that change – meaningful change to people’s lives – is possible and can be achieved quickly. We know this from our recent history, and from different approaches across the UK.”

Alongside other charities and organisations including the Big Issue, the Joseph Rowntree Foundation has repeatedly called on the government to increase universal credit so that people can afford their essentials, with a protected minimum floor built into the benefits system. Universal credit is currently believed to fall short by around £120 each month.

“The British public believes that everyone should be able to afford the essentials,” Kissack added. “With its child poverty strategy later this year the government has the opportunity to show it agrees. Any credible child poverty strategy must include policies that rebuild the tattered social security system. The wellbeing of millions of children depends on that. And so do the government’s wider ambitions for improved living standards and opportunity.”

Advertisement

There are around 14.3 million people living in poverty in the UK. That is more than one in five people, and 4.3 million of them are children.

Mark Russell, chief executive of the Children’s Society, said: “These stark projections show that even positive growth in the UK economy isn’t enough to reverse this crisis without urgent policy changes put in place to make a real difference. The much-anticipated child poverty strategy is a positive step, but we still need more progress. Immediate action is required: abolish the two-child limit, reform social security – if we are to give children the futures they deserve.”

Child poverty in Scotland are projected to be just 70% of the level in England by 2029, according to the Joseph Rowntree Foundation report. If the rest of the UK were to see the same reduction in the share of children in poverty achieved in Scotland, 800,000 fewer children would be in poverty. 

Councillor Arooj Shah, chair of the Local Government Association’s children and young people board, added: “The most effective way to support low-income families and lift them out of poverty is through an adequately resourced national safety net.

“This needs to be alongside sustainable long-term funding for vital local services provided by councils, such as advice services, local welfare assistance, housing and employment support. We are engaging with the government on its proposed strategy and working with them to ensure that every child has the best possible start in life.”

Do you have a story to tell or opinions to share about this? Get in touch and tell us moreBig Issue exists to give homeless and marginalised people the opportunity to earn an income. To support our work buy a copy of the magazine or get the app from the App Store or Google Play.

Advertisement
Advertisement

Never miss an issue

Take advantage of our special New Year subscription offer. Subscribe from just £9.99 and never miss an issue.

Recommended for you

Read All
James O'Brien on being adopted and why he hasn't met his birth mum: 'So much of life is luck'
james o'brien
Adoption

James O'Brien on being adopted and why he hasn't met his birth mum: 'So much of life is luck'

Disability benefits such as PIP are actually good for the economy, economists say
Disability benefits

Disability benefits such as PIP are actually good for the economy, economists say

DWP's benefit fraud crackdown blasted as 'one of the biggest assaults on welfare in a generation'
keir starmer
Department for Work and Pensions

DWP's benefit fraud crackdown blasted as 'one of the biggest assaults on welfare in a generation'

DWP benefit payment dates in February 2025 – and how much benefits will go up this year
picture of money next to a clock representing dwp benefit payment dates
Benefits

DWP benefit payment dates in February 2025 – and how much benefits will go up this year

Most Popular

Read All
Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits
Renters: A mortgage lender's window advertising buy-to-let products
1.

Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal
Pound coins on a piece of paper with disability living allowancve
2.

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal

Cost of living payment 2024: Where to get help now the scheme is over
next dwp cost of living payment 2023
3.

Cost of living payment 2024: Where to get help now the scheme is over

Citroën Ami: the tiny electric vehicle driving change with The Big Issue
4.

Citroën Ami: the tiny electric vehicle driving change with The Big Issue