Extra funding to help offset UK Government benefit cap
The Scottish Government is providing £8.6 million in direct support for people affected by the UK benefit cap as part of its work to tackle child poverty.
An estimated 4,000 families with around 14,000 children are now able to apply for extra financial support through their local council’s Discretionary Housing Payments scheme.
Social Justice Secretary Shona Robison said: “We are increasing funding to help bridge the gap between what people need in benefits from the UK Government and what they actually receive. Eligible households could be £2,500 better off on average per year as a result.
“We will spend up to £84 million in 2023-24 on Discretionary Housing Payments to mitigate not only the UK Government’s bedroom tax and the on-going freeze to Local Housing Allowance rates, but now also the benefit cap which is pushing families into hardship.
“Our child poverty targets are ambitious and that is why we are choosing to invest significantly more in social security than the funding we receive from Westminster and helping to mitigate the damaging impact of UK Government welfare cuts.”
John Dickie, Chair of the Child Poverty Action Group, said: “Mitigating the UK benefit cap is absolutely the right thing to do. Support for struggling families shouldn’t have an arbitrary limit that pushes children into deeper poverty.
“It’s now vital that everyone affected by the benefit cap applies to their local authority for a Discretionary Housing Payment to replace as far as possible the cash support removed by the cap. The Scottish Government has done the right thing, now the UK Government must act to scrap the cap altogether.”
Laura Millar, Strategic Manager at charity Fife Gingerbread, which helps lone parents and families in need, said: “Last year Fife Gingerbread supported the ‘Scrap the Cap’ campaign calling on Westminster to end the benefit cap and the financial hardship this causes.
“Therefore, the Scottish Government’s commitment to empower local authorities to mitigate the impacts of the benefit cap using Discretionary Housing Payments is a positive step.
“Although the number of households affected across Scotland may be relatively small this is an important measure. The greatest risk is that households may be unaware of their entitlement, and every year millions of pounds of benefits go unclaimed. Therefore, we must all raise awareness of this announcement to ensure those most in need of support receive it.”
Funding for benefit cap mitigation by Scottish local authorities through Discretionary Housing Payments is as follows:
2022-23
£2.6 million
2023-24
£6 million
Total
£8.6 million
The benefit cap is a UK Government policy which limits the total amount of benefit that most working age people can receive, even if their full entitlement would be higher.
Scotland is a country where compassion is strong, but where child poverty is an ongoing injustice that we have to end together.
Best Start, Bright Future, the Scottish Government’s Tackling Child Poverty Delivery Plan, was published at the end of March. It’s designed to help create the change we need to drive down child poverty and reach Scotland’s interim child poverty targets in 2024.
There are a lot of commitments in the plan, and we are hosting a special morning webinar to explore how we can make sure they are implemented, and how they can best deliver practical change in our communities.
The plan includes pledges to: increase the level of the Scottish Child Payment; create a new employability offer to help parents get into work, and; mitigation of the benefit cap.
There is lot more besides, and Best Start, Bright Futures will touch on all areas of anti-poverty activity in Scotland. It is crucial for groups and organisations across the country to understand what it all means for their work.
UP TO £660 PER YEAR COULD BE SLASHED FROM HOUSEHOLD INCOME
In a letter to the chancellor last week, the Bank of England stated that it expected inflation to be “around 8 per cent” this spring. With Universal Credit set to rise by just 3.1 per cent in April, families with children on universal credit now face a real-terms cut of around £660 per year, on average.
This is an increase on Child Poverty Action Group’s original analysis which showed a cut of £570, when inflation was expected to be 7.25 per cent.
The £20 cut to universal credit last October plunged out-of-work benefits to their lowest level in 30 years. Latest analysis shows that the picture for families is going from bad to worse.
Without government action, families will be pulled deeper into poverty. Increasing benefits by anything less than 8 per cent risks pushing those with already stretched budgets past breaking point.
Anti-poverty charities wrote to the Chancellor last weekcalling for a minimum 7% benefits rise:
Prices are rising at the fastest rate in 30 years, and energy bills alone are going to rise by 54% in April. We are all feeling the pinch but the soaring costs of essentials will hurt low-income families, whose budgets are already at breaking point, most.
There has long been a profound mismatch between what those with a low income have, and what they need to get by. Policies such as the benefit cap, the benefit freeze and deductions have left many struggling.
And although benefits will increase by 3.1% in April, inflation is projected to be 7.25% by then. This means a real-terms income cut just six months after the £20 per week cut to universal credit.
Child Poverty Action Group’s analysis shows families’ universal credit will fall in value by £570 per year, on average. The Joseph Rowntree Foundation has calculated that 400,000 people could be pulled into poverty by this real-terms cut to benefits.
The government must respond to the scale of the challenge. Prices are rising across the board. Families with children in poverty will face £35 per month in extra energy costs through spring and summer, even after the government’s council tax rebate scheme is factored in. These families also face £26 per month in additional food costs. The pressure isn’t going to ease: energy costs will rise again in October.
A second cut to benefits in six months is unthinkable. The government should increase benefits by at least 7% in April to match inflation, and ensure support for housing costs increases in line with rents. All those struggling, including families affected by the benefit cap, must feel the impact.
Much more is needed for levels of support to reflect what people need to get by, but we urge the government to use the spring statement on 23 March to stop this large gap widening even further. The people we support and represent are struggling, and budgets can’t stretch anymore.
Alison Garnham, Chief Executive, Child Poverty Action Group
Emma Revie, Chief Executive, The Trussell Trust
Graeme Cooke, Director of Evidence and Policy, Joseph Rowntree Foundation
Morgan Wild, Head of Policy, Citizens Advice
Dan Paskins, Director of UK Impact, Save the Children UK
Imran Hussain, Director of Policy and Campaigns, Action for Children
Thomas Lawson, Chief Executive, Turn2us
Sophie Corlett, Director of External Relations, Mind
Dr Dhananjayan Sriskandarajah, Chief Executive, Oxfam GB
Caroline Abrahams, Charity Director, Age UK
Eve Byrne, Director of Advocacy, Macmillan Cancer Support
Kamran Mallick, CEO, Disability Rights UK
Katherine Hill, Strategic Project Manager, 4in10 London’s Child Poverty Network
Karen Sweeney, Director of the Women’s Support Network, on behalf of the Women’s Regional Consortium, Northern Ireland
Satwat Rehman, CEO, One Parent Families Scotland
Mark Winstanley, Chief Executive, Rethink Mental Illness
James Taylor, Executive Director of Strategy, Impact and Social Change, Scope
Irene Audain MBE, Chief Executive Scottish, Out of School Care Network
Steve Douglas CBE, CEO, St Mungo’s
Richard Lane, Director of External Affairs, StepChange Debt Charity
Robert Palmer, Executive Director, Tax Justice
Claire Burns, Director, The Centre for Excellence for Children’s Care and Protection (CELCIS)
The Disability Benefits Consortium
Dr. Nick Owen MBE, CEO, The Mighty Creatives
Peter Kelly, Director, The Poverty Alliance
Elaine Downie, Co-ordinator, The Poverty Truth Community
Tim Morfin, Founder and Chief Executive, Transforming Lives for Good (TLG)
UCL Institute of Health Equity
Dr Mary-Ann Stephenson, Director, Women’s Budget Group
Natasha Finlayson OBE, Chief Executive, Working Chance
Claire Reindorp, CEO, Young Women’s Trust
Businesses in Scotland are also calling for the Chancellor to announce new measures to help with rising costs ahead of his Spring Statement tomorrow, according to a recent survey from Bank of Scotland.
As inflation hits the highest levels seen since 1992, over half (55%) of Scottish businesses said that direct help with energy bills and rising costs tops their wish list for the Chancellor. This was followed closely by calls for a reduction in VAT, cited by two-fifths (40%), while almost a quarter of firms (23%) want increased funding to help create new jobs and develop skills.
Rising prices remain a key challenge for business. Almost half (46%) of respondents said they are concerned about having to increase the costs of goods and services and over one in ten (14%) stated that inflation is reducing profitability. Almost one in ten (9%) said rising prices had caused them to worry about having to make staff redundant and a further one in ten (9%) were concerned about not being able to pay their bills.
To help specifically with rising prices Scottish businesses are asking the Chancellor for a VAT reduction (46%), while a third (35%) have called for grants to cover rising energy costs. A further quarter (23%) called for grants to support investment in energy saving measures.
The data comes as businesses face continuing supply chain challenges, which are reducing the availability of stock (40%), causing hikes in freight costs (39%) and disruption through Rules of Origin and VAT requirements from EU suppliers (33%).
Fraser Sime, regional director for Scotland at Bank of Scotland Commercial Banking, said:“Rising prices are causing multiple challenges for businesses across Scotland and the pressure from inflation shows no sign of abating in the near-term.
“As we wait for the Chancellor’s Spring Statement, we’ll continue to remain by the side of business in Scotland and support the country’s ongoing economic recovery from the pandemic.”
Responding to the ONS public sector finances statistics for FebruaryChancellor of the Exchequer, Rishi Sunak said:“The ongoing uncertainty caused by global shocks means it’s more important than ever to take a responsible approach to the public finances.
“With inflation and interest rates still on the rise, it’s crucial that we don’t allow debt to spiral and burden future generations with further debt.”
“Look at our record, we have supported people – and our fiscal rules mean we have helped households while also investing in the economy for the longer term.”
All will be revealed when the Chancellor delivers his Spring Statement (Budget) at Westminster tomorrow.
A new online booklet is launched today to help people across Scotland who care for the child of a relative, or friend, after the vast majority (88%) of kinship carers said they were not given enough information about how to access vital financial and emotional support.
What Now?produced by the Kinship Care Advice Service for Scotland (KCASS), includes a guide to the kinship assessment system, as well as contact details of organisations and support groups who can offer help and advice to carers.
Since 2010, there has been a significant increase across Scotland in the number of children being cared for by family member or friend because they are unable to live with their birth parents, an arrangement known as kinship care.
The latest Scottish Government statistics show there were 4,456 children formally looked after in kinship care in 2019-20, (31% of the looked after children population), compared to 3,172 children in 2009-2010 (20% of the looked after children population). **
KCASS, which is operated by Adoption UK Scotland and Adoption and Fostering Alliance Scotland in collaboration with the Child Poverty Action Group, is urging kinship carers and social workers to access What Now? online, or request a hard copy of the booklet, launched to mark the start of this year’s Kinship Care Week.
Susan Hunter, KCASS project coordinator, said: “Since its inception our KCASS Advisory Group, all of whom are kinship carers, has highlighted the lack of suitable information available to them, particularly at the start of their kinship journey.
“All too often kinship carers get in touch with our helpline asking for assistance; they have taken on the care of children at short notice with no understanding of what this will entail for them and their family.
“Kinship carers describe feeling overwhelmed and very much alone. Where they have been provided with information, they have found this to be difficult to comprehend with terms they are not familiar with, leaving them confused and uninformed.”
Children’s Minister Clare Haughey said: “Kinship Care Week provides an opportunity to celebrate and pay tribute to the important role that kinship carers play in providing loving, secure, stable, and nurturing homes for children and young people who can no longer live with their parents.
“All kinship carers deserve to get the support they need, and I welcome publication of the What Now? booklet, which will help kinship carers access important information. I would like to thank members of the KCASS Advisory Group who ensured the voices of those with care experience were heard when the booklet was developed.”
Fiona Aitken, director, Adoption UK Scotland, said: “We’re proud to be facilitating Kinship Care Week as an opportunity for us to raise the profile of the carers who tirelessly provide loving homes for their children.
“The week allows us to provide valuable opportunities for children in kinship families to take part in fun activities, workshops and group sessions for carers and learning and networking events for practitioners, encouraging all Scottish kinship care families, and those who support them, to take part.”
Robin Duncan, Adoption and Fostering Alliance Scotland director, said: “Kinship Care Week is a great opportunity to increase awareness of kinship care and give recognition to the carers for the remarkable, and often unsung, contribution they make. It also gives us the chance to spread the word about the new What Now? booklet so that this can be as widely available as possible helping to improve the availability and consistency of support to people when they take on the care of a child.”
This year’s Kinship Care Week takes place from 14th -18th March and features a range of webinars and discussion groups for carers, social workers, and childcare professionals. A full programme of events can be found at https://kinship.scot/kinship-care-week-2022/
Kinship carers or professionals can order a hard copy of What Now? by contacting KCASS at advice@kinshipscot.org, or by calling 0808 800 0006.
Michelle became a kinship carer to her two granddaughters five years ago. She says she and her husband were not given any advice or guidance at the time about kinship care or what was expected of them as carers.
She said: “When I first became a kinship carer I got a call out of the blue asking me to look after my granddaughters for a few weeks whilst social work got things sorted out at home. Five years later they are still with us.
“The day they arrived I heard the words kinship carer, something I had never heard of before and knew nothing about. My husband, daughter and I looked like rabbits caught in headlights with two little children. We were given no help, advice, or guidance as to what to do or what was expected of us, we felt so very alone and angry. We had no contact numbers and did not even receive a phone call. If I had been given this booklet then it would have made things a little easier. Just to know that we were not alone and that help was out there, it would have been an absolute lifeline.
“I suggested developing a booklet like this at the KCASS Advisory Group which I am a part of. I didn’t want anyone else to go through the horrible, sometimes debilitating situation I was left in. This booklet would have helped so very much.
“That is why I am so very passionate and determined that it should be given to all kinship carers when they take on the care of a child, just so they know that they are not alone and have all the information they will need.”
The Scottish Child Payment will be doubled to £20 per week per child from April 2022, the First Minister has announced. The decision has been welcomed by poverty camapigners.
First Minister Nicola Sturgeon confirmed that more than 105,000 children will immediately benefit from the increased payment, which supports low income families with children aged under 6.
First introduced in February 2021 as a £10 per week payment designed to tackle child poverty, it provides regular, additional financial support for eligible families.
The benefit, which is unique in the UK, will be fully rolled out to children under the age of 16 by the end of 2022, subject to data on qualifying benefits being received from the Department of Work and Pensions. It is expected over 400,000 children could be eligible for the doubled payment from that point.
From 2023/24 it will represent an annual investment in tackling child poverty of around £360 million a year. The increase to £20 per week further underlines the Scottish Government’s national mission to tackle child poverty.
The First Minister said: “The Scottish Government is determined to lift children out of poverty.
“Of the £2 billion a year that the Scottish Government invests to support people on low incomes, over £670 million is already targeted at children. Through the range of new payments delivered by Social Security Scotland, low income families receive, in the early years of each child’s life, £5,000 of additional financial support.
“At the heart of this is the Scottish Child Payment – the only payment of its kind anywhere in the UK, designed solely to lift children out of poverty and give them better lives. The £10 per week payment for eligible children under age 6 will be extended to all eligible children under 16 at the end of 2022; and we committed to doubling the payment to £20 per child per week within this Parliamentary term.
“I am proud that our budget will confirm that we will double the Scottish Child Payment from the start of the new financial year. This increase to £20 per child per week will reach over 105,000 children under age 6 in just four months’ time. When we extend the Scottish Child Payment to all under 16s at the end of next year, over 400,000 children and their families will be eligible.
“This is the boldest and most ambitious anti-poverty measure anywhere in the UK. Delivering it isn’t easy. It will involve hard choices elsewhere in our budget. But it is a choice we are opting to make.
“Eradicating child poverty is essential if we are to build the strongest foundation for Scotland’s future. And that is what we are determined to do.”
Scottish Government Minister and Scottish Green Party Co-Leader Patrick Harvie said: “With rising inflation, energy costs and the recent UK Government cuts to Universal Credit, further action to tackle child poverty could not have been more urgent.
“I’m therefore delighted that the Scottish Government has been able to double the Scottish Child Payment from April, just months after our policy of free bus travel for children and young people goes live.
“These bold actions deliver on key commitments made in the cooperation deal between the Scottish Government and the Scottish Green Party, and will make a real difference to families across Scotland.”
Scottish Greens MSP Lorna Slater said the decision will be pivotal to tackling child poverty in Lothian.
Ms Slater said: “With a new Covid variant, rising energy costs, inflation and the catastrophic impact of a Tory Brexit being felt, it is more important than ever that we do everything we can to help people that are being hit by Westminster’s cuts and austerity.
“That is why I’m delighted that we will see the Scottish Child Payment doubled in the forthcoming Scottish budget. This will be pivotal to tackling child poverty and will be welcomed by families that are feeling stretched, particularly those that have been hit by Boris Johnson’s punishing Universal Credit cut.
“With Greens in government we are delivering for people and the planet and making a real difference to families in Lothian and beyond.”
“That is why we are introducing free bus travel for everyone under 22 from January, extending free school meals to all primary school pupils and ensuring that government contracts pay the real living wage. We will continue to work towards a fairer, greener Scotland.”
Social Security Scotland delivers a number of benefits for families. These include Best Start Grant Pregnancy and Baby Payment, Early Learning Payment, School Age Payment and Best Start Foods.
The newly doubled Scottish Child Payment, together with the three Best Start Grant payments and Best Start Foods, could give families up to £8,400 by the time their first child turns 6.
Campaigners have welcomed the announcement:
Chris Birt, Associate Director for Scotland at Joseph Rowntree Foundation said:“This is very welcome news that will provide vital support for families with young children following what is expected to be a challenging winter as the cost of living continues to rise. Doubling the payment for older children cannot come soon enough.
“As we noted in our Poverty in Scotland report, this investment alone will not be enough to meet the interim child poverty targets, but it is an important step in the right direction and will make a real difference to families.”
Demonstrators gathered at High Riggs Jobcentre yesterday to demand the re-instatement of the £20 cut to Universal Credit. The protest was called by Edinburgh Coalition Against Poverty in response to a call from Disabled People Against the Cuts for UK-wide protests.
Participants included disabled people, pensioners, workers and a group of school students.
Police attended but did not intervene.
The demonstrators denounced the UK government cut, due to be implemented from the end of this month. Protestors held placards with the hashtag #20MoreForAll, demanding the £20 increase be extended to “legacy benefits” like Job Seekers Allowance and Employment and Support Allowance.
Campaigners have raised alarm at the hardship which a £20 cut will cause to the six million Universal Credit claimants, who include the low paid, unemployed, families and sick and disabled people.
Edinburgh Coalition Against Poverty leaflets distributed at the protest quoted research by the Child Poverty Action Group.
The research reveals that over the last decade nearly 100 cuts have been made to social security entitlement and the value of payments has fallen as social security rates have been either frozen or increased by less than inflation.
Thus even with the £20 increase a typical Universal Credit claimant would be hundreds of pounds worse off in 2021 than in 2010.
Ethel MacDonald of Edinburgh Coalition Against Poverty said: “The brutal cut in Universal Credit is yet another example of governments attacking the poor to benefit the rich.
“This is also an attack on wages and conditions, aiming to force people to accept insecure low paid jobs. Many on Universal Credit are of course already in such badly paid work, since 39% of Universal Credit claimants are in employment.”
The ECAP spokesperson urged people to organise: “ We need to organise at the grass-roots to resist the cut to Universal Credit, the entire austerity agenda, and the whole profit-based system.
“Claimants need to join together and support each other – for example by accompanying each other to appointments and assessments.”
ECAP stress: “After today’s protest, the struggle against the cut continues. What’s more, we are opposing the DWP’s reckless return to compulsory jobcentre appointments – this endangers both claimants and jobcentre workers, due to the continuing covid threat. We totally oppose all sanctions, and urge claimants to contact us for solidarity.”
While MSPs will debate the Universal Credit cut at Holyrood today, the decision lies with Westminister. The UK Government insists the UC uplift was always intended to be a temporary measure and that their focus is on getting people into work.
Child poverty has risen in every Scottish local authority since 2015, according to new research published today by the End Child Poverty coalition. The new data shows the scale of the challenge faced by UK, Scottish and local government if commitments to end child poverty in Scotland are to be met.
The research by Loughborough University, on behalf of the End Child Poverty coalition, shows that, even before the pandemic*, levels of child poverty in Scotland ranged from nearly one in six children in the Shetland Islands and East Renfrewshire to nearly one in three in Glasgow – once housing costs are taken into account.
Across the UK the North East of England has seen the most dramatic rise in child poverty in the past five years with child poverty rising by over a third – from 26% of all children to 37% – over five years.
Scotland has lower levels of child poverty (24%) than England (30%) or Wales (31%). However, campaigners in Scotland say that there can be no room for complacency if statutory child poverty targets agreed by all the Holyrood parties are to be met.
The Child Poverty (Scotland) Act, passed unanimously by the last parliament, requires the new Scottish government to ensure fewer than 18% of children are living in poverty by 2023/24, on course to less than 10% by 2030. Councils and local health boards are also required to publish annual Local Child Poverty Action Reports setting out action being taken at local level to tackle child poverty. The End Child Poverty campaigners are urging that local powers, including over economic development, housing and welfare, are all used to maximise family incomes and reduce the costs parents face.
Responding to the latest figures Peter Kelly, Director of the Poverty Alliance, said: “In Scotland, we share a responsibility to care for all of our children. These statistics show the need for bold, far-reaching action to loosen the grip of poverty on people’s lives, and ensure each of us has what we need to live a decent and dignified life.
“Stemming this rising tide of hardship must be a priority for the new Scottish Government, and there are actions that can be taken right now to do just that – starting with doubling the Scottish Child Payment and accelerating its rollout for children over the age of 6. This would mean families who are struggling to stay afloat will receive the support they need to avoid being swept into poverty.”
Speaking on behalf of members of End Child Poverty John Dickie, director of the Child Poverty Action Group in Scotland, added: “Solid foundations have been laid in Scotland for future progress on child poverty, not least the introduction of the Scottish child payment and an increasing focus on action at local level.
“But this new data is a stark reminder that child poverty was still rising in every part of Scotland, even before the pandemic struck. The challenge now is for government at all levels to use every power they have to boost family incomes and reduce the costs that struggling parents face.
“The new Scottish parliament must act on election promises and make tackling child poverty its top priority. The cross party commitment to at least doubling the Scottish child payment needs to be implemented as a matter of utmost urgency in order to help meet the 2023/24 targets.
“But child poverty also needs to be a priority at local level. Local powers, including over economic development, housing and welfare, must be used to maximum effect to ensure all families have a disposable income fit for giving children a decent start in life.”
The End Child Poverty coalition is also calling on the UK government to recognise the scale of the problem and its impact on children’s lives.
They say a credible UK government plan is needed to end child poverty across the UK, including a commitment to increase UK child benefits. Given the extent to which families are already struggling, the £20 per week cut to Universal Credit planned in October should also be revoked they say, with the support also extended to those still receiving financial assistance from the old benefit system, referred to as ‘legacy benefits’, before they are switched to Universal Credit.
“The figures speak for themselves – the situation for children couldn’t be starker. We all want to live in a society where children are supported to be the best they can be, but the reality is very different for too many.
“The UK Government can be in no doubt about the challenge it faces if it is serious about ‘levelling up’ parts of the country hardest hit by poverty. After the year we’ve all had, they owe it to our children to come up with a plan to tackle child poverty that includes a boost to children’s benefits. And they need to scrap plans to cut Universal Credit given parents and children are having a tough enough time as it is.”
More than half of children living in some constituencies are living in poverty after housing costs are factored in.
Highest rates of child poverty in London and Birmingham
Sharpest increases in child poverty in Midlands and northern cities.
Local authority and constituency data available below.
Child poverty has risen most sharply in parts of the Midlands and Northern towns and cities in the past four years, according to research published today by the End Child Poverty coalition showing the scale of the challenge faced by government if it is to realise its ambition to build back better and level up opportunities for children across the UK.
The research by Loughborough University shows that, before the pandemic, in some parts of the country the majority of children were growing up in poverty, once housing costs are taken into account.
The greatest concentrations of children living in poverty are in London, with London boroughs and parts of Birmingham dominating the list of local authorities where child poverty is highest. In a dozen constituencies in London and Birmingham, more than half the children are living below the poverty line.
Yet the research also shows that the problem is not confined to the UK’s two largest cities. In the last four years, child poverty has risen fastest in parts of the Midlands and Northern towns and cities. Middlesbrough and parts of Tyneside have seen child poverty rates soar by over 10 percentage points since 2014/15.
In the past, low incomes in these areas were counteracted by cheaper housing costs, but during the five years leading up to 2018/19, rents in other parts of the country have risen by the same amount as in the capital, so in places where incomes are being depressed, this is less likely to be offset by falling relative housing costs.
Many of these families find, that once their housing costs are paid, they do not have enough money to meet their children’s needs and are left no option but to turn to crisis help, like food banks, and are increasingly reliant on free school meals.
The impact of poverty on children is well documented with children from low income families more likely to experience worse physical and mental health; do less well in school; and have fewer opportunities in the future.
The coalition is calling on the Government to recognise the scale of the problem and its impact on children’s lives. They are urging the Government to set out an ambitious plan to tackle child poverty encompassing not only social security spending but the high cost of housing and childcare and investment in children’s services.
The report is based on data published by the Department for Work and Pensions in March 2020, and on estimates of the effect of housing costs on poverty rates produced by the Centre for Research in Social Policy at Loughborough University, based on survey evidence.
Earlier this year, Boris Johnson was rebuked by the statistics watchdog for his repeated misuse of child poverty statistics. The Statistics Authority upheld a complaint from the End Child Poverty coalition judging that on three separate occasions his statements on child poverty were ‘incorrect’.
Anna Feuchtwang, Chair of End Child Poverty which commissioned the research, said: “The Government can be in no doubt about the challenge it faces if it is serious about ‘levelling up’ disadvantaged parts of the country.
“This new data reveals the true extent of the hardship experienced by families on low incomes – the overwhelming majority of which were working households before the pandemic. The children affected are on a cliff edge, and the pandemic will only sweep them further into danger.
“The Prime Minister must urgently admit to the true extent of child poverty in our country rather than resorting to his own inaccurate statistics. An ambitious plan to put this shameful situation right would be transformational for millions of children.
“As a matter of urgency we are calling on the Chancellor not to go ahead with planned cuts to Universal Credit which would see families lose out on £1000 a year. Given today’s data, this cut is unconscionable.”
End Child Poverty is calling for an urgent Government plan to end child poverty including:
Uprating of housing assistance in line with inflation;
Retain the £20 uplift in Universal Credit introduced at the start of the pandemic, which the Government has indicated will end in April 2021(a move supported by over 63k people and counting who have signed a petition to the Government);
End the benefit cap and the two-child limit on benefits;
Invest in all children with an increase to child benefit
Extend Free School Meals to all families in receipt of Universal Credit and those with No Recourse to Public Funds
The full report ‘Local indicators of child poverty after housing costs, 2018/19’, as well as tables with local data, are available at: www.endchildpoverty.org.uk
THE PICTURE IN SCOTLAND
Child poverty has risen in nearly every Scottish local authority and Westminster constituency since 2014/15, according to research published today by the End Child Poverty coalition.
The new data shows the scale of the challenge faced by UK, Scottish and local government if commitments to end child poverty in Scotland are to be met and the promise to level up opportunities for children across the UK realised.
The research by Loughborough University shows that, even before the pandemic, levels of child poverty in Scotland ranged from one in seven children in the Shetland Islands to nearly one in three in Glasgow, once housing costs are taken into account. The varying impact of housing costs on levels of child poverty in different parts of the country is highlighted.
The data shows London boroughs and parts of Birmingham dominating the list of UK local authorities where child poverty is highest – however the campaigners say that there can be no room for complacency in Scotland.
They highlight that the impact of poverty on children is well documented with children from low income families more likely to experience worse physical and mental health; do less well in school; and have fewer opportunities in the future.
The coalition is calling on the UK Government to recognise the scale of the problem and its impact on children’s lives. They are urging UK Ministers to set out an ambitious plan to use Westminster powers to tackle child poverty across the UK, and are asking the Holyrood government to build on the Scottish child poverty delivery plan already in place.
They welcome the new Scottish child payment which will see eligible children under six entitled to £10 per week additional support from February 2021, with all under 16s benefitting by the end of 2022.
However they say that just to stop child poverty rising will require a doubling in the value of the new payment, and that families need urgent cash support now to bridge the gap until it’s roll out.
The report is based on data published by the Department for Work and Pensions in March 2020, and on estimates of the effect of housing costs on poverty rates produced by the Centre for Research in Social Policy at Loughborough University, based on survey evidence.
Earlier this year, Boris Johnson was rebuked by the statistics watchdog for his repeated misuse of child poverty statistics. The Statistics Authority upheld a complaint from the End Child Poverty coalition judging that on three separate occasions his statements on child poverty were ‘incorrect’.
Speaking on behalf of members of End Child Poverty in Scotland, John Dickie, said: “The Prime Minister must urgently face up to the true extent of child poverty across the UK rather than resorting to his own inaccurate statistics. An ambitious plan to put this shameful situation right would be transformational for millions of children in Scotland and across the UK.
“As a matter of urgency we are calling on the Chancellor not to go ahead with planned cuts to Universal Credit which would see families lose out on £1000 a year. Given today’s data, this cut is unconscionable.”
Mr Dickie also called for more action from government in Scotland: “Here in Scotland the Holyrood government’s child poverty delivery plan and prioritisation of the new Scottish child payment are hugely welcome.
“But these new figures highlight the importance of keeping housing costs affordable, the importance of reviewing the value of the Scottish child payment and the urgent need to use existing payment mechanisms, like local authority school clothing grants, to provide extra financial support to families right now.”
End Child Poverty is calling for an urgent UK Government plan to end child poverty including:
Uprating of housing assistance in line with inflation;
Retaining the £20 uplift in Universal Credit introduced at the start of the pandemic, which the Government has indicated will end in April 2021(retaining the uplift is supported by over 63k people who have signed a petition to the UK Government);
Ending the benefit cap and the two-child limit on benefits;
Investing in all children with an increase to child benefit
The full report ‘Local indicators of child poverty after housing costs, 2018/19’, as well as tables with local data, are available at: www.endchildpoverty.org.uk
Children living in poverty, below 60% median income after housing costs, by Scottish local authority
Local authority
Number
Percentage
Percentage point change (2015-19)
2014/15
2018/19
2014/15
2018/19
Aberdeen City
6439
7471
19.2%
21.5%
2.3
Aberdeenshire
7622
7938
15.6%
16.1%
0.5
Angus
4253
4608
21.6%
24.0%
2.4
Argyll and Bute
2876
3056
21.2%
23.4%
2.2
City of Edinburgh
14145
15295
18.8%
19.5%
0.7
Clackmannanshire
2250
2409
24.8%
26.8%
2.0
Dumfries and Galloway
5610
6141
23.4%
26.2%
2.8
Dundee City
5812
6540
24.5%
27.3%
2.8
East Ayrshire
5250
5899
24.8%
27.9%
3.1
East Dunbartonshire
2899
3109
15.7%
16.1%
0.5
East Lothian
4188
4489
22.3%
23.3%
1.0
East Renfrewshire
2791
2940
15.4%
15.2%
-0.2
Falkirk
6555
6929
23.1%
24.5%
1.4
Fife
15390
16993
24.0%
26.3%
2.4
Glasgow City
26146
31823
27.0%
31.8%
4.8
Highland
8637
9054
21.5%
23.0%
1.6
Inverclyde
2904
3013
22.1%
23.8%
1.7
Midlothian
3713
4068
22.8%
23.2%
0.4
Moray
3480
3617
21.0%
22.4%
1.5
Na h-Eileanan Siar
768
847
17.3%
19.5%
2.2
North Ayrshire
5895
6448
25.2%
28.3%
3.0
North Lanarkshire
15503
16528
24.4%
26.2%
1.8
Orkney Islands
691
779
19.8%
21.9%
2.1
Perth and Kinross
5013
5403
20.4%
22.2%
1.7
Renfrewshire
6083
6958
20.2%
23.0%
2.8
Scottish Borders
4132
4544
21.6%
23.9%
2.3
Shetland Islands
549
608
12.8%
14.4%
1.6
South Ayrshire
4167
4404
23.3%
25.0%
1.7
South Lanarkshire
12083
12799
22.0%
23.2%
1.2
Stirling
3168
3285
20.5%
21.3%
0.8
West Dunbartonshire
3861
4310
24.6%
27.4%
2.8
West Lothian
7632
8380
21.7%
23.7%
1.9
Child poverty, % of children below 60% median income, before (BHC) and after (AHC) housing costs, by Scottish local authority
2018/19
2018/19
BHC
AHC
percentage point difference
between BHC and AHC
Aberdeen City
14.9%
21.5%
6.6
Aberdeenshire
10.4%
16.1%
5.7
Angus
17.6%
24.0%
6.4
Argyll and Bute
17.3%
23.4%
6.1
City of Edinburgh
12.6%
19.5%
6.9
Clackmannanshire
20.8%
26.8%
6.0
Dumfries and Galloway
20.6%
26.2%
5.6
Dundee City
21.4%
27.3%
5.9
East Ayrshire
22.9%
27.9%
5.0
East Dunbartonshire
10.4%
16.1%
5.7
East Lothian
15.8%
23.3%
7.5
East Renfrewshire
10.0%
15.2%
5.2
Falkirk
18.1%
24.5%
6.4
Fife
20.5%
26.3%
5.8
Glasgow City
28.0%
31.8%
3.8
Highland
16.7%
23.0%
6.3
Inverclyde
17.7%
23.8%
6.1
Midlothian
15.7%
23.2%
7.5
Moray
16.1%
22.4%
6.3
Na h-Eileanan Siar
13.4%
19.5%
6.1
North Ayrshire
23.4%
28.3%
4.9
North Lanarkshire
20.6%
26.2%
5.6
Orkney Islands
15.6%
21.9%
6.3
Perth and Kinross
15.7%
22.2%
6.5
Renfrewshire
16.9%
23.0%
6.1
Scottish Borders
17.6%
23.9%
6.3
Shetland Islands
9.3%
14.4%
5.1
South Ayrshire
19.2%
25.0%
5.8
South Lanarkshire
17.2%
23.2%
6.0
Stirling
14.9%
21.3%
6.4
West Dunbartonshire
21.9%
27.4%
5.5
West Lothian
17.1%
23.7%
6.6
Child poverty, % of children below 60% median income after housing costs (AHC), by Westminster constituency
Parliamentary constituency
Number
Percentage
Percentage point change (2015-19)
2014/15
2018/19
2014/15
2018/19
Aberdeen North
3334
4087
22.0%
26.5%
4.5
Aberdeen South
1925
2322
13.9%
16.0%
2.1
Airdrie and Shotts
4151
4410
25.5%
27.2%
1.7
Angus
3320
3649
22.9%
25.7%
2.8
Argyll and Bute
2809
3021
20.6%
23.2%
2.5
Ayr, Carrick and Cumnock
3913
4212
26.2%
28.6%
2.5
Banff and Buchan
3246
3365
20.1%
20.8%
0.7
Berwickshire, Roxburgh and Selkirk
3436
3886
22.4%
25.2%
2.8
Caithness, Sutherland and Easter Ross
2385
2546
23.1%
25.6%
2.5
Central Ayrshire
3630
3959
24.7%
27.0%
2.3
Coatbridge, Chryston and Bellshill
4294
4548
24.0%
25.9%
1.8
Cumbernauld, Kilsyth and Kirkintilloch East
3398
3745
21.3%
23.3%
2.0
Dumfries and Galloway
3753
4058
24.3%
26.8%
2.5
Dumfriesshire, Clydesdale and Tweeddale
3014
3310
21.2%
23.8%
2.6
Dundee East
3385
3607
21.5%
23.1%
1.7
Dundee West
3236
3801
24.6%
28.2%
3.6
Dunfermline and West Fife
3887
4342
21.1%
23.2%
2.1
East Dunbartonshire
2289
2292
16.2%
15.6%
-0.7
East Kilbride, Strathaven and Lesmahagow
3242
3602
18.3%
20.3%
2.0
East Lothian
4172
5058
22.2%
26.2%
3.9
East Renfrewshire
3119
3326
17.2%
17.2%
0.0
Edinburgh East
2808
3088
21.6%
22.8%
1.2
Edinburgh North and Leith
2909
3116
19.0%
19.9%
0.9
Edinburgh South
2105
2180
14.7%
14.7%
0.0
Edinburgh South West
2884
3049
18.6%
19.2%
0.6
Edinburgh West
2432
2900
14.3%
15.8%
1.5
Na h-Eileanan an Iar
700
799
15.8%
18.4%
2.6
Falkirk
4274
4594
21.8%
23.8%
2.0
Glasgow Central
3859
5561
32.8%
41.3%
8.5
Glasgow East
4316
5313
27.1%
30.6%
3.5
Glasgow North
2473
2882
27.7%
31.2%
3.5
Glasgow North East
4150
4850
28.0%
33.4%
5.4
Glasgow North West
3672
4289
24.8%
29.0%
4.2
Glasgow South
3820
4350
26.4%
30.8%
4.4
Glasgow South West
4549
5298
28.0%
31.8%
3.9
Glenrothes
4390
4853
27.1%
29.8%
2.7
Gordon
2098
2550
11.5%
13.5%
2.0
Inverclyde
2818
2926
21.4%
23.2%
1.7
Inverness, Nairn, Badenoch and Strathspey
3697
3912
20.4%
21.5%
1.1
Kilmarnock and Loudoun
4091
4624
24.3%
27.6%
3.3
Kirkcaldy and Cowdenbeath
4706
5293
26.2%
29.2%
3.0
Lanark and Hamilton East
3673
3865
23.0%
23.8%
0.7
Linlithgow and East Falkirk
4885
5173
22.1%
22.5%
0.4
Livingston
4580
5152
21.2%
24.2%
3.1
Midlothian
3497
3843
21.4%
21.8%
0.4
Moray
3367
3552
20.4%
22.0%
1.6
Motherwell and Wishaw
4518
4821
26.2%
27.7%
1.5
North Ayrshire and Arran
3957
4237
24.8%
27.6%
2.8
North East Fife
2158
2402
18.9%
21.1%
2.3
Ochil and South Perthshire
3790
4031
21.2%
22.5%
1.3
Orkney and Shetland
1346
1470
17.3%
19.0%
1.7
Paisley and Renfrewshire North
2954
3421
18.7%
20.8%
2.0
Paisley and Renfrewshire South
2817
3380
19.8%
24.8%
5.0
Perth and North Perthshire
3438
3690
22.0%
23.8%
1.9
Ross, Skye and Lochaber
2399
2478
20.7%
22.3%
1.6
Rutherglen and Hamilton West
4491
4720
23.3%
24.4%
1.0
Stirling
3099
3202
20.0%
20.7%
0.7
West Aberdeenshire and Kincardine
1904
2139
10.2%
11.4%
1.2
West Dunbartonshire
3867
4305
24.7%
27.4%
2.7
About End Child Poverty
End Child Poverty is a coalition of organisations from civic society including children’s charities, child welfare organisations, social justice groups, faith groups, trade unions and others, united in our vision of a UK free of child poverty. For more details visit: www.endchildpoverty.org.uk
End Child Poverty members in Scotland include Aberlour, Action for Children, Barnardo’s Scotland, Child Poverty Action Group (CPAG) in Scotland, Children 1st, Close the Gap, Engender, One Parent Families Scotland, Oxfam Scotland, Poverty Alliance, and Save the Children.
The 20 UK constituencies with the highest increases in AHC (after housing costs) child poverty 2014/15 -2018/19
Constituency
% of children below 60% median income AHC
2014/15
2018/19
%age point increase
UK
28%
30%
2%
Middlesbrough
31.2%
47.2%
16.0%
Newcastle upon Tyne Central
31.7%
45.2%
13.5%
Birmingham Hodge Hill
40.5%
53.8%
13.4%
Bradford West
34.9%
47.8%
12.9%
Birmingham Ladywood
41.8%
54.5%
12.7%
Birmingham Yardley
32.4%
44.7%
12.4%
South Shields
28.2%
39.3%
11.1%
Bradford East
36.4%
46.9%
10.5%
Newcastle upon Tyne East
27.1%
36.8%
9.7%
Bolton South East
37.1%
46.7%
9.6%
Sedgefield
23.5%
33.0%
9.5%
Hartlepool
27.6%
37.1%
9.5%
Oldham West and Royton
38.5%
48.0%
9.4%
Gateshead
26.0%
35.3%
9.3%
Blackburn
38.1%
47.3%
9.2%
Jarrow
23.5%
32.6%
9.1%
Middlesbrough South and East Cleveland
24.2%
33.2%
9.0%
Manchester Gorton
38.6%
47.6%
9.0%
North Durham
24.3%
33.3%
9.0%
Easington
25.8%
34.6%
8.8%
The 20 UK constituencies with the highest AHC compared to BHC (before housing costs) poverty rates, 2018/19
Child Poverty Action Group awarded funding from The National Lottery Community Fund to remove barriers to learning for children from low-income backgrounds
Children in hard-up families are facing barriers to learning opportunities
Parents are increasingly asked to contribute to the costs of a school day
A £2 million National Lottery-backed project to support children’s learning and ease financial pressure on low-income parents has begun with 128 schools across the UK set to take action over the next three years.
Child Poverty Action Group (CPAG), working with project partners Children North East, will use the National Lottery funding to help schools remove the financial barriers to learning and participation that hold low-income children back, alongside easing the pressure that school-related costs place on struggling families.
The project will draw on previous work by both organisations that has helped schools to explore and address the impact of poverty on education.
Now, thanks to the National Lottery funding, UK Cost of the School Day will roll out to schools in Coventry, Neath Port Talbot, the London boroughs of Greenwich, Westminster, Kensington and Chelsea, as well as expanding to Moray in Scotland.
Through a structured, pupil-led approach, UK Cost of the School Day project staff will work with children and young people, families, teachers, school staff and local authorities to identify ‘cost barriers’ in each school – and to co-design ‘action plans’ to remove them.
Inclusion levels and changes in pupils’ experiences of school will be used to evaluate the effectiveness of the intervention throughout the first two years of the project, with the final year focussing on spreading changes that have a positive impact for pupils, beyond the initial 128 schools.
Alison Garnham, Chief Executive of Child Poverty Action Group, said: “School days are supposed to be the best days of a child’s life, but instead for some children and their families, they can be a source of anxiety if there are extra and unexpected costs for parents.
“Nine children in every class of 30 are growing up in poverty and although school is free, increasing costs are putting a great strain on families, causing some children to miss out on aspects of school life.
“This is why we’re delighted with the funding from The National Lottery Community Fund. This project will help schools work out what they can do differently to help to bridge these gaps – by making small changes to school life, they can make a huge difference to a child.”
Pupils and staff in schools which have been involved in the earlier Children North East and CPAG in Scotland projects reported a range of cost-barriers to learning, including:
Subject costs (e.g. materials for Art, Home Economics, IT, and the cost of theatre trips for Drama)
Not having IT at home for homework
Lack of money for school trips
Lack of money for travel-to-school fares (or travel home from after school activities which end after the free bus has left)
Cost of buying past exam papers and other revision materials
Cost of hiring and maintaining a musical instrument
A range of bespoke changes were recommended by these projects, to stop financial exclusion at school, including:
Choosing more affordable school trips, subsidising trips and/ or allowing parents to pay for trips in instalments
Providing sibling discounts for fun events and trips
Removing curriculum costs for subjects like home economics and technology
Providing a starter pack for entry level pupils of bag, pencil case and stationery and setting up homework clubs with resources such as IT
Reviewing school uniform policies, recycling school uniform items, buying plain blazers and ironing on badges
Improved promotion of school clothing grants and free school meals
Sharing bus hire with nearby schools
Setting up breakfast clubs and breakfast boxes for pupils
Reducing or removing costs for after school clubs and activities
John Knights, Senior Head of the UK Portfolio at The National Lottery Community Fund, said:“Thanks to National Lottery players this project will support school children to be able to fully and equally take part in all aspects of school life.
“Importantly the project is putting young people in the lead to create solutions that reduce the stigma that they can feel and enable them to thrive.”
Michele Deans, Operations Director at Children North East said: “Children North East is enormously proud of our Poverty Proofing the School Day initiative and we’re delighted to be partnering with Child Poverty Action Group on this important work.
“We’re looking forward to using our combined expertise to support more schools across the UK and ensure that every pupil can fully participate in school, regardless of family income.”
The overall cost of a child over 18 years (including rent and childcare) is £150, 753 for a couple and £183,335 for a lone parent. But work doesn’t pay low-income families enough to meet a no-frills standard of living, new research from Child Poverty Action Group (CPAG) shows.Continue reading Working families falling short of minimum living standard
