To ask His Majesty's Government what steps are they taking to prevent children falling into poverty during future economic crises, in response to the conclusions of the UNICEF report Child Poverty in the Midst of Wealth, published on 6 December 2023.
Answered on
22 January 2024
The most recent available data, covering 2021/22, shows that relative poverty rates for children remain unchanged since 2009/10. On an absolute basis, which better represents changes to actual living standards, the rate after housing costs has fallen by 5 percentage points across the same period. There were 400,000 fewer children in absolute poverty after housing costs in 2021/22 compared to 2009/10.
The Government is committed to reducing poverty, including child poverty, and supporting low-income families. From April, and subject to Parliamentary approval, working age benefits will rise by a further 6.7% in line with inflation and the increase in the Local Housing Allowance rates to the 30th percentile of local market rates will give further help to 1.6 million low-income households.
The Government has always believed that work is the best way to help families improve their financial circumstances. This approach is based on clear evidence about the important role that work - particularly full-time – can play in reducing the risks of poverty. In the financial year 2021 to 2022, children living in households where all adults work were around 5 times less likely to be in absolute poverty after housing costs than those living in workless households.
This is why, with over 900,000 vacancies across the UK, our focus remains firmly on providing parents with the support they need to move into and progress in work. Parents on Universal Credit who are moving into work or increasing their hours can now get additional support with upfront childcare costs, and we have also increased the childcare costs that they can claim back by nearly 50%, up to £951 a month for one child and £1,630 for two or more children.
To support those who are in work, on 1 April 2024, the Government will increase the National Living Wage (NLW) for people aged 21 and over by 9.8% to £11.44 an hour, an increase of over £1,800 to the gross annual earning of a full-time worker on the NLW.
The Government is providing support worth £104 billion over 2022-23 to 2024-25 to help households with the high cost of living, this clearly shows that we will always act to ensure that the most vulnerable get the support they need, and we will continue to keep all our existing programmes under review in the usual way.