Welfare reform threatens to push many children into poverty
Bob Reitemeier
Wednesday, June 22, 2011
Last week, the Welfare Reform Bill had its third reading in the Commons and moved on swiftly into the Lords where it will face its second reading sometime next month. Whilst The Children’s Society welcome aspects of the bill which simplify the benefit system and improve incentives to move into work, we think that a number of key aspects of the bill need substantial changes to truly support low income families.
Whilst the Government has confirmed the target to eradicate child poverty by 2020, the realities of the reforms within the new bill mean that things may be heading in completely the wrong direction for many families
In particular, we are concerned about low income working families facing high childcare costs and families with disabled children. We also have concerns around the cap on benefits which will limit benefit receipt for out of work households.
The government have now presented a number of options for dealing with childcare costs in the new Universal Credit benefit introduced through the welfare reform bill. Under some of the options presented, some of the poorest working families with children could have to find an extra £150 or more per week for child care costs from their own pocket. Many parents with high childcare costs may no longer find that it is affordable to stay in employment. This could damage aspirations of parents with young children to move into work to escape poverty, and have serious implications for both the wellbeing and life chances of their children. Greater investment in childcare is needed for these families.
Secondly, the government has announced changes to support for disabled children currently provided through the Universal Credit. This could cost around 100,000 disabled children up to £1400 per year. We are concerned this could push many low income families below the poverty line.
Finally, we are concerned about the government’s plans to introduce a cap on benefit entitlement for out of work households, which will limit support to £500 per week, affecting 50,000 households – 95% of which are households with children. This punitive cap will particularly affect children in large families, and those living in areas of high housing costs, such as London.
If this Bill is to really work and help the government to meet its 2020 poverty commitments, then it must ensure that adequate support is provided for the most vulnerable families in our society. We hope that changes are made to ensure that it does just this.
Whilst the Government has confirmed the target to eradicate child poverty by 2020, the realities of the reforms within the new bill mean that things may be heading in completely the wrong direction for many families
In particular, we are concerned about low income working families facing high childcare costs and families with disabled children. We also have concerns around the cap on benefits which will limit benefit receipt for out of work households.
The government have now presented a number of options for dealing with childcare costs in the new Universal Credit benefit introduced through the welfare reform bill. Under some of the options presented, some of the poorest working families with children could have to find an extra £150 or more per week for child care costs from their own pocket. Many parents with high childcare costs may no longer find that it is affordable to stay in employment. This could damage aspirations of parents with young children to move into work to escape poverty, and have serious implications for both the wellbeing and life chances of their children. Greater investment in childcare is needed for these families.
Secondly, the government has announced changes to support for disabled children currently provided through the Universal Credit. This could cost around 100,000 disabled children up to £1400 per year. We are concerned this could push many low income families below the poverty line.
Finally, we are concerned about the government’s plans to introduce a cap on benefit entitlement for out of work households, which will limit support to £500 per week, affecting 50,000 households – 95% of which are households with children. This punitive cap will particularly affect children in large families, and those living in areas of high housing costs, such as London.
If this Bill is to really work and help the government to meet its 2020 poverty commitments, then it must ensure that adequate support is provided for the most vulnerable families in our society. We hope that changes are made to ensure that it does just this.
