After the temporary boost in universal Credit, a children’s organisation has accused the government of “swiping away” assistance for families.
The number of individuals living in poverty in the UK has nearly returned to pre-pandemic levels, according to a children’s charity that accuses the government of knowing what assistance is required but refusing to provide it.
In the year leading up to March 2022, it was predicted that a total of 14.4 million persons had a low income, defined as less than 60% of the average household income.
These numbers were down from 13.4 million in the year leading up to March 2021 but close to the 14.5 million living in poverty a year earlier when the Covid-19 outbreak struck.
Thursday’s official figures from the Department of Work and Pensions indicated that 4.2 million children would be living in poverty in the year ending in March 2022.
This was a jump from the previous year’s total of 3,9 million. For the year ending in March 2020, the figure was 4.3 million.
The decline in the number of persons living in poverty from 2020 to 2021 was massively attributable to the government’s initiatives during the pandemic, which included a brief boost in Universal Credit in the autumn of 2021 and the provision of assistance through the furlough plan.
The charity Action for Children has accused ministers of knowing what works, based on the actions taken during the COVID-19 pandemic, but “choosing not to do it,” and has claimed that aid to families has been “stolen away.”
The director of policy and campaigns for the organisation, Imran Hussain, stated, “It is astounding that, despite the epidemic, the cost-of-living issue, and the potential of increased child poverty for years to come, the government is not focusing assistance for children from low-income families.
“The government can do so much more in these difficult times to prevent those with the least from suffering the most.”
He advocated for increasing the kid element of Universal Credit and eliminating the benefits cap.
He stated, “Ministers are aware of what works but choose not to implement it.” In the first year, the £20-per-week increase to Universal Credit helped reduce child poverty, but this assistance was taken away from families 18 months later.
“The child portion of Universal Credit should be increased by at least £15 per week, and the benefit cap should be eliminated to raise approximately 320,000 children out of poverty.
They might also eliminate the major obstacles that hinder parents from working and safeguard the standard of life of those who cannot work or work any more than they already do.
It would not be unexpected for poverty rates to surpass their pre-pandemic levels.
Save the Children UK called the latest data “grim” and stated that, a day after other figures revealed an unexpected increase in inflation to 10.4% last month, they “demonstrate that families are still in a dire situation.”
Becca Lyon, the charity’s director of child poverty, stated, “Families need a proper benefits system that protects them from hardship and ensures that children do not grow up knowing the inside of a food bank.”
The Child Poverty Action Group mirrored these sentiments, stating that the boost in Universal Credit had lifted many children out of poverty but that the government has since “dropped them back again.”
The organisation has produced its study suggesting that child poverty costs the UK £39.5 billion per year in lost tax revenue and earnings, unemployment benefits, and increased expenditures on public services.
The organisation’s chief executive, Alison Garnham, stated, “Children pay the highest possible price for poverty, with their health, well-being, and life opportunities.” According to our findings, the nation also pays a high financial price.
She stated that it is “inexcusable for ministers to sit on their hands,” adding, “Child poverty can be eradicated if the political will exists.”
The expected number of working-age adults living in poverty increased to 2.5 million from 2.1 million the year before. The number remains lower than in the year ending in March 2020, when it was 2.8 million.
Back to pre-pandemic levels and up from 1.7 million for the year ending in March 2021, 2.1 million seniors were expected to live in relative poverty as of March 31, 2021.
Without immediate, focused, and persistent action on the part of the government, senior poverty could begin to rise again during the cost-of-living crisis and beyond.
Independent Age’s Morgan Vine deemed it “disgraceful” that poverty levels in older life have stayed the same as pre-pandemic and urged the government to take “urgent, targeted, and sustained” action.
She stated, “Every day, our helpline receives calls from elderly individuals who have been forced to make dangerous dietary and heating cuts.” Without immediate, focused, and persistent action on the part of the government, senior poverty could rise again during the cost-of-living crisis and beyond.”
The average household income before housing expenses has not returned to pre-pandemic levels, falling to £565 per week in the year leading up to March 2022 from £572 per week to March 2020.
In the year ending in March 2022, the average weekly household income was £500 per week, up marginally from £492 the previous year and £499 the year before that.
The Institute for Fiscal Studies (IFS) cautioned that poverty rates might surpass their pre-pandemic levels because wages haven’t kept up with inflation and benefits have decreased in real terms.
In its analysis, the economic think tank stated, “Since inflation has been high since the beginning of 2022, all income distributions will likely experience reductions in 2022–2023.
“On average, earnings have not kept up with price increases, and benefits, which are updated with a lagging measure of inflation, have declined significantly in real terms.” Although various grants would mitigate this impact, it would not be shocking if poverty rates rose above their pre-pandemic levels.”
A government official stated that the government is “committed to eradicating poverty and assisting those in need, and our actions have contributed to the reduction of absolute poverty by nearly two million since 2009/10.”
He stated that the most recent figures “reflect the country’s exit from the pandemic and the accompanying price increases” and that record levels of support have been provided through cost-of-living payments, the Household Support Fund, and the Energy Price Guarantee, which “will continue to keep people’s energy bills low.”
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