JRF issues stark warning on child poverty targets in key state of the nation report

“It is time for the Scottish Government to stop walking and start running”

The Scottish Government must take urgent action to avoid missing its own child poverty targets by a significant margin, leaving families across the country locked in poverty. The cut to Universal Credit by the UK Government in just two days’ time makes the task more urgent. 

Kicking off Challenge Poverty Week with its annual state of the nation report, Poverty in Scotland 2021, the Joseph Rowntree Foundation (JRF) paints a picture of poverty levels in Scotland just before the Covid-19 pandemic.

It highlights a failure to make inroads into the significant levels of poverty among the priority groups for action as identified by the Scottish Government, including families from an ethnic minority background, families where someone is disabled, those with a child under the age of one and single parent households.

Key findings for these groups include: 

  • More than 80% of children in poverty are in one of these groups.  
  • 100,000 children in poverty in live in a household where someone is disabled – a shocking 40% of all children in poverty 
  • Children from minority ethnic backgrounds make up 7% of the population yet make up 16% of all children in poverty 
  • Children in two or more priority groups have a much higher poverty rate (36%) than those in one priority group (25%) and nearly three times that of those in no priority group (13%). 

These figures are pre-Covid 19, and much evidence has highlighted the unequal impact the pandemic has had on many of these groups, meaning their current situations could be much worse. This lays bare scale of the challenge facing the Scottish Government if it is to meet its targets and makes clear the need for targeted action to support these groups.  

The report was produced alongside the End Poverty Scotland Group, an advisory group of people from across Scotland with first-hand experience of living on a low income.  

Alex, a member of the advisory group said: ‘If over 80% of children in poverty are still in one of the priority groups, how much of a priority  are we, really?’ 

The findings also highlight the importance of full-time work in reducing poverty in Scotland. 54% of people who are in families where no one is working are in poverty. People in families where someone is working part-time have a poverty rate of 30% while the poverty rate for people in families where at least one person is in full-time work is 10%.  

The desire and need to work was a strong theme from the advisory group, but the inflexibility of childcare provision was highlighted as a consistent barrier. The group expressed deep frustration that in most cases people were trying to create a better life for them and their families, but success was often despite the system rather than because of it.  

The report urges both the Scottish and UK Governments to increase the adequacy of social security in order to drive down poverty levels. 

JRF recommends that the Scottish Child Payment is doubled as soon as possible and that the upcoming Tackling Child Poverty Delivery Plan must set out a clear and measurable course towards meeting those targets. It must include a far greater scale and pace of activity to support families in the priority groups who are most at risk of poverty. 

The UK Government’s cut to Universal Credit and Working Tax credit in just two days’ time will cut £1,040 per year from the incomes of 450,000 families in Scotland. This cut will increase poverty in Scotland across all groups, not just families with children.

The UK Government is responsible for 85% of social security spending in Scotland and the responsibility for the impact of this cut lies at their door. As well as reversing the cut, the report recommends reform of rules such as the five-week wait for the first payment of Universal Credit, and the two-child limit, which drive destitution and hardship in Scotland as they do in other parts of the UK. 

Chris Birt, Associate Director of JRF in Scotland said: “The Scottish Government has rightly set a national mission to end child poverty and has put in place steps to move us in the right direction. But we are on course to miss our targets by some distance. Such a political failure would have a profound human cost –  tens of thousands more children will experience childhoods blighted by hardship and anxiety. 

“It is time for the Scottish Government to stop walking and start running, by immediately doubling the Scottish Child Payment and by significantly increasing the scale and pace of its programme to support families in priority groups.  The forthcoming Budget and Tackling Child Poverty Delivery Plan will be crucial in putting us on a path to meeting our targets. 

“All tiers of government must look at the design and cultures that underpin public services. The group of people on low incomes who co-authored the report are clear in the need for a more constructive approach underpinned by kindness and ease of use as well as more accountability to the people who use the systems. 

“The responsibility for the cut to Universal Credit falls squarely at the UK Government’s door.  It is a failure of both compassion and of policy.  Its decision to impose the biggest overnight cut to social security in the history of our welfare state will cause immediate and widespread hardship in Scotland. With reserved powers, comes reserved responsibility.  

“Our social security system should protect people from poverty, but the UK Government is instead choosing to condemn them to it.” 

“Prime Minister is abandoning millions to hunger and hardship with his eyes wide open”

  • Joseph Rowntree Foundation issues a stark warning ahead of the cut to Universal Credit scheduled for 6 October – the same day as the Prime Minister’s speech at Conservative Party Conference.
  • New analysis looks at the impact of the Universal Credit cut by local authority.

On Wednesday, as the Prime Minister delivers his speech to the Conservative Party Conference, his government will be imposing the biggest ever overnight cut to social security. This will reduce the incomes of around 5.5 million families by £1,040 per year.

In the Greater Manchester Combined Authority area – the host city of this year’s Conservative Party Conference – around 312,000 working-age families (26%) are facing this historic cut to Universal Credit and Working Tax Credit.

If the Government presses ahead with the cut, it would:

  • Pull half a million people into poverty, including 200,000 children.
  • Fundamentally undermine the adequacy of our social security system at precisely the moment when families are facing considerable increases in the cost of their energy bills, prices on the shelves are going up and National Insurance is set to rise in April 2022.
  • Reduce the main rate of out-of-work support down to its lowest level in real terms since around 1990 and its lowest ever level as a proportion of average earnings.

The Government themselves have admitted this week that families may struggle to meet basic costs, like food and heating, by increasing the funding available for local authorities to give grants to families in emergency situations.

The support available through their newly announced Household Support Fund is temporary and discretionary and is typically reserved for one-off emergency situations such as a broken fridge. This scheme does not come close to meeting the scale of the challenge facing families.

Who will be impacted by the cut?

New analysis finds that in 35 local authorities across Great Britain 50% or more of working-age families with children will be impacted by the planned cut.

JRF has consistently warned that:

  • Working families make up around 60% of families who will be affected by the cut to Universal Credit and Working Tax Credit.
  • Families with children (particularly single-parent families), those containing someone who is disabled, and Black, Asian or Minority Ethnic (‘BAME’) families, will be disproportionately impacted by the reduction in Universal Credit or Working Tax Credit.
  • The cut will have the most severe impact in Yorkshire and the Humber, the North East, North West and West Midlands, although no region will be left unscathed by this decision.

Katie Schmuecker, Deputy Director of Policy & Partnerships at the Joseph Rowntree Foundation, said: “The Prime Minister is abandoning millions to hunger and hardship with his eyes wide open. The biggest ever overnight cut to social security flies in the face of the Government’s mission to unite and level up our country.

“When the increase to Universal Credit was introduced, the Chancellor said it was to “strengthen the safety net” – a tacit admission a decade of cuts and freezes had left our social security lifeline to wear thin and threadbare for families in and out of work relying on it. This planned cut would reverse the progress made and leave it wholly inadequate.

“People’s bills won’t get £87-a-month cheaper from Wednesday and families are already anxious about how they will get through a looming cost of living crisis. This decision is set to plunge half a million people into poverty and shows a total disregard for the consequences. The Prime Minister cannot say he has not been warned, he must abandon this cut.”

Table 1: Top 10 Labour and Conservative majority local authorities with the highest percentage of working-age families with children impacted by the cut

Top 10 Labour majority local authorities affectedTop 10 Conservative majority local authorities affected
Local Authority% of all working-age families with children impacted by the cutLocal Authority% of all working-age families with children impacted by the cut 
Newham64Pendle58
Leicester62Walsall53
Manchester61Great Yarmouth52
Bradford61North East Lincolnshire50
Oldham60Southampton49
Birmingham60East Lindsey48
Blackburn with Darwen58Dover45
Kingston upon Hull – City of58North Lincolnshire44
Sandwell58South Holland44
Tower Hamlets58Nuneaton and Bedworth44

Of local authorities with no majority party, with the highest percentages of working-age families with children impacted by the planned cut, Middlesbrough (60%) and Burnley (58%) are both coalition-led councils. Blackpool (57%) is Labour minority and Thanet (55%), Peterborough (55%) and Stoke-on-Trent (55%) are all Conservative minority.

Table 2: Families impacted by £20-per-week reduction to UC/WTC in October 2021

 Family typeFamilies on UC or WTC losing £20 per week in October 2021
Number of families (millions)Proportion of families who lose% of all working-age families of that type who lose
All working-age families5.5100%20%
Families with someone in work3.564%16%
Families without someone in work2.036%33%
Single without children2.342%18%
Couples without children0.610%8%
Single-parent families1.120%61%
Couple-parent families1.528%25%
Families where someone is disabled2.850%35%
Families where no one is disabled2.750%14%
BAME families1.120%25%
Non-BAME families4.480%19%

Source: Microsimulation by JRF using the IPPR Tax and Benefits Microsimulation Model and the OBR’s March 2021 forecasts. Breakdowns may not sum to totals due to rounding.

Making this decision with his eyes wide open:

  • The cut is opposed by six former Conservative Work & Pensions Secretaries, the Northern Research Group of Conservative MPs, the One Nation Group of Conservative MPs, all the devolved administrations, numerous cross-party committees in all nations of the UK. Iain Duncan Smith recently said, “the extra £20 has returned to UC some of the investment that was cut from my original design.”
  • 100 organisations are urging the Prime Minister not to cut Universal Credit. Among the signatories of the joint open letter to the Prime Minister are leading voices on health, education, children, housing, poverty, the economy and other aspects of public policy. (published 2 September)

Keep the Lifeline: Holyrood votes to oppose Universal Credit cut

Yesterday, Lothian MSP, and Scottish Greens Co-leader, Lorna Slater joined the overwhelming majority of MSPs in voting to oppose the cruel Tory £20 cut to universal credit that is being inflicted by Westminster.

The cut will impact tens of thousands of families in Lothian, cutting their income by £1,040 per year.

Lothian MSP and Scottish Greens Co-leader Lorna Slater said: “The Tories have shown their true colours. This is one of the biggest social security cuts ever seen in this country and could plunge tens of thousands of families in Lothian into despair.

“It is particularly unwelcome at a time when so many people are still struggling with the impact of the pandemic.

“£20 a week may not be a lot to the Prime Minister and his colleagues, but for far too many families it is crucial to their budgeting and their wellbeing. For many people across this city, it could be the difference between a warm home and a cold one this winter

“Many people claiming universal credit are in fact in work. The so-called uplift was not an act of generosity, but an admission of failure – an admission that the system had been so damaged by cuts that it was no longer able to provide adequate support for people needing help with their incomes for reasons beyond their control.

“The cut is symbolic of a UK government that knows the price of some things but the value of nothing. It shows why Scotland needs the powers to chart a different path that prioritises human need and builds a fairer, greener recovery for all.”

Holyrood Social Security Minister, Edinburgh Northern & Leith MSP Ben Macpherson, closed yesterday’s debate:

#KeepTheLifeline

Edinburgh protest against cut to Universal Credit

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.

Edinburgh Coalition Against Poverty ecapmail@gmail.com

www.edinburghagainstpoverty.org.uk 

Twitter @ecap_org 

https://www.facebook.com/edinburghagainstpoverty

Boris Johnson shuffles his pack

Aces, Knaves or Jokers?

Prime Minister Boris Johnson is reshuffling his Cabinet.

Education Secretary Gavin Williamson has been sacked and former Foreign Secretary Domic Raab has paid the price for his role in the Afghanistan withdrawal debacle. Raab is replaced by Liz Truss, while Nadhim Zahawi is also promoted – he takes over at Education.

Robert Jenrick (Housing and Communities) and Robert Buckland (Lord Advocate and Secretary of State for Justice) have left the government.

Further junior ministerial appointments will be announced today, but changes so far (marked with an asterisk) are as follows:

Prime Minister, First Lord of the Treasury, Minister for the Civil Service, and Minister for the Union

  • Rt Hon Boris Johnson MP

HM Treasury

  • Chancellor of the Exchequer – Rt Hon Rishi Sunak MP
  • Chief Secretary to the Treasury – Simon Clarke MP

Foreign, Commonwealth and Development Offic8e

  • Secretary of State for Foreign, Commonwealth and Development Affairs, and Minister for Women and Equalities – Rt Hon Elizabeth Truss MP *
  • Minister of State in the Foreign, Commonwealth and Development Office – Rt Hon Amanda Milling MP
  • Minister of State at the Ministry of Housing, Communities and Local Government, jointly with the Foreign, Commonwealth and Development Office (Minister for Equalities) – Kemi Badenoch MP

Home Office

  • Secretary of State for the Home Department – Rt Hon Priti Patel MP
  • Minister of State – Kit Malthouse MP (jointly with the Ministry of Justice)

Cabinet Office

  • Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office – Rt Hon Stephen Barclay MP
  • Minister of State – The Rt Hon Lord Frost CMG
  • COP26 President – Rt Hon Alok Sharma MP
  • Minister without Portfolio – Rt Hon Oliver Dowden CBE MP *
  • Minister of State – Nigel Adams MP

Ministry of Justice

  • Deputy Prime Minister, Lord Chancellor, and Secretary of State for Justice – Rt Hon Dominic Raab MP *
  • Minister of State – Kit Malthouse MP (jointly with the Home Office)

Ministry of Defence

  • Secretary of State for Defence – Rt Hon Ben Wallace MP

Department for International Trade

  • Secretary of State for International Trade, and President of the Board of Trade – Rt Hon Anne-Marie Trevelyan MP

Department of Health and Social Care

  • Secretary of State for Health and Social Care – The Rt Hon Sajid Javid

Department for Work and Pensions

  • Secretary of State for Work and Pensions – Rt Hon Dr Thérèse Coffey MP

Department for Business, Energy and Industrial Strategy

  • Secretary of State for Business, Energy and Industrial Strategy – Rt Hon Kwasi Kwarteng MP
  • Minister of State at the Department for Business, Energy and Industrial Strategy – Rt Hon Greg Hands MP

Ministry of Housing, Communities and Local Government

  • Secretary of State for Housing, Communities and Local Government – Rt Hon Michael Gove MP *
  • Minister of State at the Ministry of Housing, Communities and Local Government, jointly with the Foreign, Commonwealth and Development Office (Minister for Equalities) – Kemi Badenoch MP

Department for Education

  • Secretary of State for Education – Nadhim Zahawi MP *
  • Minister of State – Michelle Donelan MP

Department for Digital, Culture, Media and Sport

  • Secretary of State for Digital, Culture, Media and Sport – Nadine Dorries MP *
  • Minister of State at the Department for Digital, Culture, Media and Sport – Julia Lopez MP

Department for Environment, Food and Rural Affairs

  • Secretary of State for Environment, Food and Rural Affairs – Rt Hon George Eustice MP
  • Minister of State at the Department for Environment, Food and Rural Affairs – Victoria Prentis MP

Department for Transport

  • Secretary of State for Transport – Rt Hon Grant Shapps MP

Northern Ireland Office

  • Secretary of State for Northern Ireland – Rt Hon Brandon Lewis CBE MP

Scotland Office

  • Secretary of State for Scotland – Rt Hon Alister Jack MP

Wales Office

  • Secretary of State for Wales – Rt Hon Simon Hart MP

Office of the Leader of the House of Lords

  • Lord Privy Seal, and Leader of the House of Lords – Rt Hon Baroness Evans of Bowes Park

Office of the Leader of the House of Commons

  • Lord President of the Council, and Leader of the House of Commons – Rt Hon Jacob Rees-Mogg MP

Whips – House of Commons

  • Parliamentary Secretary to the Treasury (Chief Whip) – Rt Hon Mark Spencer MP

Law Officers

  • Attorney General – Rt Hon Suella Braverman MP

The following have left the government:

  • Rt Hon Gavin Williamson CBE MP – previously Secretary of State for Education
  • Rt Hon Robert Jenrick MP – previously Secretary of State for Housing, Communities and Local Government
  • Rt Hon Robert Buckland QC MP – previously Lord Chancellor, and Secretary of State for Justice

Yesterday’s announcements coincidentally (?) overshadowed an important Westminster debate on social security and the cut to Universal Credit.

Peter Matejic, Deputy Director of Evidence & Impact at the Joseph Rowntree Foundation, said: “No Government committed to levelling up can credibly defend the biggest ever overnight cut to social security.

“As bills are going up, cost of essential items are rising and National Insurance is set to be increased, ministers are ploughing ahead with a damaging cut to Universal Credit which is fiercely opposed across the political spectrum.

“The Government is reportedly planning to ignore its own analysis which shows how catastrophic this cut would be. No good will come of cutting Universal Credit by £20-a-week. All it would do is impose unnecessary hardship on millions of low-income families and hurt the very communities the Government wants to level up.

“Ministers have nothing to say to the many families who are unable to work or are not expected to work due to sickness, disability or caring responsibilities who are facing this massive income shock.

We all need an adequate social security system and, for those who are already in work or looking for a job, a bold Plan for Jobs, if we are to improve living standards. The Prime Minister knows this and it’s not too late for him to keep this vital lifeline strong.”

Helen Barnard, Deputy Director of the Joseph Rowntree Foundation, said: “Today’s debate makes clear that the Prime Minister and Chancellor are increasingly isolated in supporting the cut to Universal Credit.

“There is widespread concern amongst MPs about the devastating impact this will have on huge numbers of their constituents and new ministers are certain to face intense pressure from families anxious about how they will make ends meet from next month.

“The £20-a-week increase to Universal Credit is vital to protect families from poverty and provide the stability they need to improve their prospects.

“As energy bills go up, prices on the shelves rise and National Insurance is set to increase, the Prime Minister must urgently keep this support in place, or his premiership risks being defined by plunging people into poverty rather than levelling up.”

Children’s Commissioners urge UK Government to stop violating children’s rights to an adequate standard of living

The Children’s Commissioners of Scotland, Wales, and Northern Ireland have repeated their calls to the UK Government to end its two-child limit on Universal Credit and Child Tax Credit warning that the policy continues to violate children’s human rights. 

All three have also called on the UK Government to abandon the scrapping of the £20 uplift, which would compound the poverty issues facing children across the nations, and urge the prioritisation of children’s rights in any further changes to Universal Credit.  

Giving evidence yesterday  (Wednesday, September 8) to the Public Services Committee at the House of Lords, the Commissioners again pointed out that the two-child limit policy – which disallows benefits payments to third and subsequent children born after April 2017 in most circumstances – is a discriminatory policy contrary to the government’s obligations under the United Nations Convention of the Rights of the Child.  

Children’s Commissioner for Wales, Sally Holland said: “We remain deeply concerned that the two-child policy and the scrapping of the £20 uplift breaches childen’s rights to an adequate standard of living and is contributing to a rising gap in poverty levels between families with three or more children and smaller households.  

“The two-child limit in particular has a disproportionate impact on social groups where larger families are more common, such as some minority faith and ethnic groups and in Northern Ireland where families are larger than the rest of the UK.”  

The Commissioners – Bruce Adamson for Scotland, Sally Holland for Wales, and Koulla Yiasouma for Northern Ireland – remain concerned that UK benefit rules prevent devolved governments from fully tackling child poverty.   

Speaking after the Committee session, Children and Young People’s Commissioner for Scotland, Bruce Adamson said: “The Scottish Government had an opportunity yesterday within the Programme for Government to do all that it can to mitigate against the worse of the UK Government’s benefit rules.

“While new commitments on housing, food and the new Whole Family Wellbeing Fund are welcome, not increasing the Scottish Child Payment with immediate effect was hugely concerning as children need this money now.

“Poverty is a human rights issue and while UK benefit rules continue to play a significant part in keeping families in poverty, the Scottish Government plays an important role in ensuring children’s rights are met. The effects of the pandemic – which are still becoming clear – have only served to make a dire situation worse for those in poverty or only just getting by. Both governments must do more.”

Commissioner Sally Holland said: “Children are hungry and living in sub-standard housing in the UK in 2021 and that is a disgrace. Poverty affects every aspect of a child’s life, from their health – both physical and mental – to their education. How can a child concentrate properly at school and learn if they are hungry? 

“The State has an obligation to children and every child has the right to an adequate standard of living. Families have a right to social security. These polices are a clear breach of children’s human rights.”  

  In May, the Children’s Commissioners of Scotland, Wales, and Northern Ireland wrote an open letter to the Right Honourable Thérèse Coffey, Secretary of State for Work and Pensions, calling for an end to the two-child limit of Universal Credit and Child Tax Credit and for the £20 uplift in universal credit amounts to be maintained.