Millions of families struggling to provide the 'basics'
Friday, May 22, 2015
More than two million children are living in households that have cut back on food or heating because of a real-term freeze to child benefits.
According to a new analysis by End Child Poverty, a failure to increase child benefit and child tax credit in line with the cost of living over the last three years has caused one in five families across the country to struggle to provide their children with the basics. This includes working and non-working families.
End Child Poverty is a coalition of children’s charities, unions and faith groups.
In the 2012 Autumn Statement, the Government announced that most children’s benefits and tax credits would be increased by just one per cent for three years (2012-14 to 2015-16), regardless of the rate of inflation. This was made law under the Benefit Uprating Act 2013.
Based upon Government figures, the analysis, ‘Short Changed: The true cost of cuts to children’s benefit’, estimates that around 7.3 million families and 12.6 million children are affected by the freeze in child benefits.
It says that a ‘typical’ low-income working family will lose £513 this year alone as a result.
End Child Poverty is now calling for urgent action to make sure struggling families can afford to feed their children and heat their homes, and help put the Government’s commitment to end child poverty by 2020 back on track.
By guaranteeing that children’s benefits and tax credits are given the same ‘triple lock’ protection that is provided for the basic state pension, so they at least rise in line with inflation, the coalition claims the Government could significantly reduce child poverty.
It says that under a ‘triple lock’ - which would see benefits either rise in line with prices, earnings, or by 2.5 per cent, whichever is highest - 310,000 fewer children would be living in absolute poverty by 2020 than under the Government’s current policy.
End Child Poverty is calling on the Government to phase in child benefit protection during this Parliament. As a first step, it recommends the benefits rise in line with inflation for at least the next two years.
David Homes, chair of End Child Poverty, said, ‘It is deeply worrying that parents are having to cut back on food, heating and other essentials that their children need in order to develop and thrive. The new Government needs to seize the opportunity in the Queen’s speech to stop the rise in child poverty. During the election campaign David Cameron promised not to cut child benefit, now is the time for him to keep that pledge.
‘We think it is vital that child benefits keep pace with the cost of living and that the Government gives them the same protection as the state pension. This is an opportunity to be bold and to invest in our children’s future.’
Helen Berresford, director of external affairs at 4Children, said, ‘It is very worrying to hear that families are having to cut back on essentials, so important to helping families thrive. This report highlights the significant impact of child benefit and child tax credits failing to keep up with the cost of living.
‘The triple lock for pensions is used to guarantee a vulnerable section of society is protected - we should demand the same for our children.’
