A Freedom of Information request by CPAG also revealed new information that the Welfare Benefits Uprating Bill will push 200,000 children into absolute poverty and that the Government failed to make any assessment of the impact of the bill on material deprivation of children and the persistent poverty of children.
Members of the House of Lords are voting today on whether to exempt children’s benefits from the one per cent uprating cap.
Imran Hussain, head of policy at CPAG, said, ‘These alarming figures reveal that not only are the poorest families in the country being left behind compared to everyone else, but also that their living standards are going into reverse as they struggle to absorb the impact of wave after wave of policy decisions that hit families with children the hardest.
'This is not just about the pace and scale of cuts, it boils down to ensuring that our children are not on the frontline of austerity.
'Spending cuts pushing families and children into poverty are part of what is holding back the economy. This is because low income families spend their money straight away in their local shops and services, helping struggling businesses to survive.
'With the economy still stagnant, it is time to look at how helping families might also help the economy. Ministers should start by accepting the amendment to the welfare benefits uprating the bill so that children’s benefits and tax credits can keep up with rising prices.
The Budget provides an important opportunity for Ministers to do more to help families. It’s fair pay, affordable childcare, affordable homes and full employment that is needed by families if we are to make progress ending poverty and getting the economy growing strongly again.’
Additional analysis by the Institute for Public Policy Research (IPPR) has found that by 2018, 2.5 million children will be living in poverty, with 1.3 million of them below the ‘severe’ poverty line. Child poverty will increase by nearly nine per cent over the next five years.
The analysis shows that the combined impact of the tax benefit reforms are likely to hit those on lowest incomes, especially families with children and single parents, the hardest. As a result the real-terms cuts to the value of tax credits and other benefits will lead to a sharp increase in poverty levels.
Spencer Thomas, IPPR’s economic analyst, said, ‘These are shockingly high poverty figures and they raise serious questions about how the Government is choosing to target its deficit reduction strategy.
Although the pressure on public spending is tight, our analysis shows that the poorest and most vulnerable are being asked to bear a disproportionate amount of the pain as a result of the government’s austerity programme.
There’s already been an outcry from campaigners after the Government admitted that an extra 200,000 children will fall into poverty because of their one per cent up-rating benefits and other changes. Our analysis shows just what will mean for overall child poverty figures.
We have to question whether in its attempts to restore the public finances the government should be introducing tax and benefit reforms which have the effect of increasing the number of children in poverty to such an extent.’
Inflation figures were also released today showing that there is a 2.8 per cent rise in living costs mostly due to rising fuel and energy prices.
Dave Prentis, General Secretary of UNISON, said, ‘The unprecedented, unrelenting squeeze on family budgets is yet another example of the Tory-led coalition’s ongoing failure to turn recession into recovery.
'A public sector pay freeze turned squeeze has hit families and high streets hard. The spiralling cost of energy means people face the misery of choosing between heating and eating. As families suffer, its boom time for millionaires in Tory Britain who are in line for tax cuts in tomorrow’s budget.
'The Government has to take radical action to turn our economy around. Tinkering at the edges will not work. The Chancellor could take an important step in the right direction by ending the pay squeeze and stopping the jobs carnage in the public sector.’
