Child poverty gap will widen without investment in benefits, charity warns

A worrying new report from the Joseph Rowntree Foundation (JRF) claims the UK government won’t see lower child poverty levels before the next general election without investment in the benefits system.

Key findings from the report

According to JRF's analysis, only Scotland is likely to see a decline in child poverty rates by 2029.

In fact:

• The gap between child poverty rates in Scotland and the rest of the UK will widen.
• Almost one in three children in England will still be in poverty, compared to one in five in Scotland.
• Child poverty in Scotland will be just 70% of the level in England.
• If the rest of the UK matched Scotland’s reductions, 800,000 fewer children would be living in poverty.

The role of social security

While Scotland shows some progress, the overall outlook for child poverty across the UK is concerning.

A strong economy alone won’t cut poverty rates.

Without targeted policies, many regions in England may see high levels of child poverty.

Poverty rates

The report also laid bare the scale of poverty in the UK:

• 4.3m children currently live in poverty.
• 1.9m pensioners fall below the breadline.
• Child poverty rates are higher in England (30%) and Wales (29%) than Scotland (24%) and Northern Ireland (23%).

What needs to change?

Benefits don’t reflect how much life costs – they also fail to account for some families’ needs, such as having higher outgoings or making one income stretch further.

It’s why JRF says the UK government must reform its child poverty strategy by addressing policies that disproportionately affect single parents and larger families.

They’ve suggested two solutions which we at Money Wellness also want to see in place:

• scrapping the two-child limit
• introducing a protected minimum amount of support for universal credit

A call to action

Paul Kissack, chief executive of JRF, says any action must start with social security so people can meet living costs.

He says: “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.

“… Any credible child poverty strategy must include policies that rebuild the tattered social security system… The wellbeing of millions of children depends on that…”

The government’s child poverty strategy will be published later this year.

Do you need money help?

If you’re struggling to make ends meet because of the two-child benefit cap, it might be time to ask for support.

We can help you get back on track by:

• creating a realistic budget
• checking you’re getting all the benefits you’re entitled to
• talking you through some debt solutions that might be suitable for you (some are free and others have a fee)

We give free and impartial advice online or you can give us a ring.

There’s lots of useful information on our website too.