Spring Statement to See Poorest £500 a Year Worse Off
A report from the Resolution Foundation published today has shown the UK’s poorest households will be £500 a year worse off over the course of this Parliament thanks to Labour’s Spring Statement.
The report also shows that poorer households will be the most affected by Labour’s tax and benefit changes – reducing the incomes of the second poorest fifth of households by 1.5%, compared to just 0.6% for the richest fifth.
Despite Labour’s promise to reduce child poverty in Government – the DWP’s own analysis has shown their welfare cuts will push 250,000 people into poverty – including 50,000 children.
In contrast, new statistics show that child poverty in Scotland has fallen unlike in the rest of the UK.
Labour have utterly broken their promise to end child poverty. Their own actions will see a further 50,000 children plunged into poverty.Labour isn't working for Scotland – we need independence. pic.twitter.com/oJXL9xmQDL
— Graeme Dey (@GraemeDeyMSP) March 28, 2025
Annual statistics published this week show that, compared with the previous year’s statistics, relative child poverty in 2023-24 reduced from 26% to 22% in Scotland while absolute child poverty fell from 23% to 17%. UK Poverty statistics, on the other hand, show levels of relative child poverty at 31% and absolute child poverty at 26%.
Modelling published this week suggests that UK Government policies are “holding back” Scotland’s progress. It estimates the UK Government could reduce relative child poverty by an additional 100,000 children in 2025-26 if it heeded Scottish Government calls to end the two child limit, replicate the Scottish Child Payment in Universal Credit, remove the benefit cap and introduce an essentials guarantee.
This model does not take into account the UK Government’s own impact assessment of its welfare cuts announced yesterday , which states that they will leave an additional 250,000 people, including 50,000 children, in poverty.
While UK child poverty numbers reach a record high, @theSNP actions mean child poverty in Scotland is falling. Decisions made in Scotland, for Scotland are better for our people, society and economy. pic.twitter.com/KhXs6BX5RN
— Graeme Dey (@GraemeDeyMSP) March 28, 2025
Labour have utterly broken their promise on child poverty, as on so many other fronts already.
GRAEME
The reality is the literal opposite of what they projected – the poorest families not £500 better off but £500 worse off under Labour plans.
With their own research indicating the devastating impact of their planned welfare cuts, the UK Government must do the right and backtrack on Austerity 2.0.
Meanwhile, we have an SNP Government in Scotland successfully bringing down child poverty despite everything – but, as is so often the case, we are held back by a Westminster government pulling in the opposite direction.
New statistics show that child poverty rates in Scotland have fallen.
— Scot Gov Fairer (@ScotGovFairer) March 27, 2025
Our actions, including delivering the Scottish Child Payment and expanding free school meals, will benefit the poorest families by an estimated £2,600 in 2025-26.https://t.co/D630v0rs4r pic.twitter.com/M7XEFNIwp8
Eradicating child poverty is the Scottish Government’s top priority and we are committed to meeting the 2030 targets unanimously agreed by the Scottish Parliament.
SOCIAL JUSTICE SECRETARY, SHIRLEY-ANNE SOMERVILLE
Our policies are having to work harder than ever to make a difference, against a backdrop of a continuing cost of living crisis, rising energy costs and UK Government decision making. However, we know these policies are working.
Statistics published today show that, although we have not met the interim child poverty targets, the proportion of children living in relative poverty has reduced and year-on-year rates are now lower than they have been since 2014-15, while the proportion in absolute poverty has also fallen with the annual figure the lowest in 30 years.
While JRF predict child poverty will rise in other parts of the UK by 2029, they highlight that policies such as our Scottish Child Payment, and our commitment to mitigate the two-child limit, ‘are behind Scotland bucking the trend’.
But decisions taken by the UK Government are holding us back, and yesterday’s Spring statement will only make things worse. The DWP’s own figures show that proposed welfare cuts will drive 50,000 more children into poverty, which must call into question their commitment to tackling child poverty. I have already written to Work and Pensions Secretary Liz Kendall to seek reassurance about the purpose and direction of the UK Government’s Child Poverty Taskforce. The Taskforce’s credibility has been drastically undermined by the policies announced by the UKG in the past few days.
