The Department for Work and Pensions (DWP) is being urged to reform Universal Credit payments in order to ensure child poverty levels fall during this Parliament with the latest figures revealing one in five Britons were living in poverty during 2022/23.
Only Scotland is set to see a reduction in child poverty rates by 2029, while levels across England and Wales are expected to remain stagnant or worsen, according to new analysis from the Joseph Rowntree Foundation (JRF).
The gap between child poverty rates in Scotland and the rest of the UK is projected to widen from seven to 10 percentage points over the next four years.
The findings, published in JRF’s annual UK Poverty report, demonstrate the significant impact of social security policies in tackling poverty.
If the rest of the UK were to achieve the same reduction in child poverty as Scotland, 800,000 fewer children would be living in poverty.
The research indicates that economic growth alone will not reduce poverty without substantial investment in social security measures.
Child poverty rates currently show stark disparities across the UK nations, with England at 30 per cent and Wales at 29 per cent.
Scotland’s rate stands significantly lower at 24 per cent, while Northern Ireland has the lowest rate at 23 per cent.
Do you have a money story you’d like to share? Get in touch by emailing [email protected].
The Joseph Rowntree Foundation is calling for the Government to take action over child poverty
GETTY
These figures mean 4.3 million children are living in poverty across the UK. Children in lone parent families and large families face particularly high poverty rates, at 44 per cent and 45 per cent respectively.
The situation is even more concerning for persistent poverty, with 30 per cent of children in lone parent families and 28 per cent in large families experiencing extended periods of hardship, compared to 17 per cent for all children.
By April 2024, more than 60 per cent of families with three or more children were affected by the two-child limit on benefits.
JRF’s analysis shows that under central Office for Budget Responsibility projections, Scotland’s progress will continue through to 2029.
At that point, Scotland will have just one in five children living in poverty, compared to nearly one in three in England.
The improvement is largely attributed to Scotland-specific welfare policies, including the Scottish Child Payment and plans to mitigate the two-child limit from 2026.
DWP Minister Liz Kendall has promised sweeping changes to the welfare state PA These policies are boosting parents’ incomes directly, marking a significant shift from previous years when Scotland’s lower poverty rates were primarily due to lower housing costs.
None of England’s nine regions are expected to see improvements in child poverty rates by 2029, with five regions projected to experience increases and the remainder showing no change.
Even substantial economic growth will not automatically reduce child poverty rates, the JRF warns. The foundation’s analysis shows that without specific policy interventions, overall child poverty rates could rise even during periods of economic expansion.
This is particularly true if economic growth benefits higher income households more than those on lower incomes.
The current social security system is described as “out of step” with the costs families are facing.
Specific welfare policies, including the two-child limit and benefit cap, are disproportionately impacting vulnerable families. The benefit cap affects 71 per cent of lone parent households with children.
Any cuts to welfare spending would likely push more families into poverty, the JRF cautions. The foundation emphasises that targeted policies, rather than economic growth alone, are needed to reduce child poverty rates.
LATEST DEVELOPMENTS:
Experts are calling for reform to Universal Credit
PA
Paul Kissack, the chief executive of the JRF, warned poverty levels 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,” he says.
He added that “child poverty will only be driven down through focused and determined policy action.”
Turn2us head of policy Shelley Hopkinson adds: “The Government must act now to lift millions out of poverty.
“That means scrapping the two-child limit, ending harmful sanctions, and raising Universal Credit so people can afford the basics.”
“Poverty isn’t just about money. It’s about the relentless stress, its toll on our wellbeing, and the daily struggle to get by,” she said.
The UK Government is set to publish an “ambitious” cross-government child poverty strategy later this year.
JRF argues that any credible strategy must include reforms to social security, particularly addressing policies that push families into deeper poverty.
Key recommendations include abolishing the two-child limit and introducing a protected minimum amount of support in Universal Credit.
This minimum support would limit how much benefit payments can be reduced by the benefit cap.
The foundation sees this as a first step towards an “Essentials Guarantee” in Universal Credit, ensuring everyone can afford basics like food and household bills.