There are 4.3 million children in poverty in the UK, and this is set to worsen for those in Wales, England and Northern Ireland, but will ease in Scotland, according to the Joseph Rowntree Foundation (JRF).
By the end of the Government’s first term – unless an early election is called – Scotland would have 70% of England’s child poverty level, the JRF’s annual UK Poverty report found.
The report used projections from the Office for Budget Responsibility (OBR) forecast of the UK economy with current Government policies.
Some powers on policies in Scotland are devolved to its First Minister, including a weekly Scottish Child Payment to low-income families and an end to the two-child benefit cap in 2026.
If the rest of the UK aligned with Scotland on those two policies, the poverty charity predicts 800,000 fewer children would be in poverty in five years’ time.
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As it stands, the level of child poverty in Wales is 29%, and in Northern Ireland, it’s 23%.
The families disproportionately affected by the two-child limit and benefit cap in place in the UK are children being raised by one parent and households with three children or more, the research found.
Last year, over one-and-a-half million children missed out on Universal Credit payments due to the current two-child limit on families who can receive the cash boost.
The financial support can be worth an extra £3,455 to low-income families for each child they have.
Before the election, Keir Starmer said the cap would be ditched once “financial conditions allow”.
Children going without the basics
Paul Kissack, chief executive of the JRF, urged the UK Government to scrap those benefit limitations.
Kissack said: “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.”
He added: “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.
“The British public believes that everyone should be able to afford the essentials. 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.”
As well as child poverty predictions, the JRF’s annual report – the first under the current Prime Minister – showed a fifth (14.3 million people) of the UK population were in poverty during 2022/23.
Further, just over eight million people were old enough to work and 1.9 million people were pensioners.
Paul Nowak, Trades Union Congress’ (TUC’s) general secretary, said: “Every worker deserves to earn a decent living. But many working households are struggling to keep their heads above water. This is unacceptable. Working people should be able to put food on the table for their families and keep their children warm during the winter.”
Nowak added: “More money in working people’s pockets means more spend on our high streets – that’s good for workers and good for local economies. And the Employment Rights Bill will mean more good and secure jobs – boosting productivity for businesses and giving workers more control over their lives and better chances to progress.
“Better work is crucial for ending child poverty, but decent social security matters too. The Government must remove the two-child benefit cap, which is keeping too many children in working households in poverty.”
