UK Budget Fails on Child Poverty

SNP Call for Emergency Action After ‘Glaring Omission’

The SNP has called for the Labour government to take emergency action to tackle child poverty, after charities criticised the absence of any serious measures to reduce poverty at the UK budget.

The Resolution Foundation warned an additional 63,000 children will be hit by the two child benefit cap by April.

In a letter to the Prime Minister and Chancellor today, SNP Work & Pensions spokesperson, Kirsty Blackman MP, said the failure to introduce any significant measures to tackle child poverty was “a glaring omission” and warned “the Labour government is actively choosing to push thousands of Scottish children into poverty by imposing damaging welfare cuts including the two child benefit cap and bedroom tax”.

Ms Blackman called for the Labour government to come back to parliament, ahead of the spring budget, with an emergency package of measures to lift a million children out of poverty. This would include scrapping the two child limit, abolishing the bedroom tax, lifting the benefit cap and matching the SNP government’s Scottish Child Payment UK-wide by raising the child element of Universal Credit by £26.70 per child per week.

Research by the Institute for Fiscal Studies (IFS) has shown this package of measures would lift around 1.2 million children out of poverty.

It comes amid a backlash from anti-poverty charities about the lack of action in the UK budget, with Save the Children warning “the Chancellor’s decision not to scrap the two-child limit is deeply disappointing, leaving families struggling to afford basics. We need bolder moves to protect children“.

Similarly, Child Poverty Action Group (CPAG) warned “this was not a Budget of bold action on child poverty. The Chancellor missed a golden chance to scrap the two-child limit“. Single parent charity Gingerbread said “we’re disappointed that the Budget did not include a reversal of the two-child limit. Half of the households hit by this policy are single-parent families! If the government is serious about tackling child poverty, it must scrap this unfair policy.“

Meanwhile, the Joseph Rowntree Foundation warned “It’s deeply worrying that we haven’t seen changes to social security that will seriously bring down hardship“, and Christians Against Poverty (CAP) added that “with social security rates only set to increase by 1.7 per cent, millions will still be left with the reality that their income is not high enough to cover the costs of essentials.”

Post-budget analysis from the Resolution Foundation reveals an additional 63,000 children will become affected by the Labour government’s two child benefit cap between now and the spring budget in April 2025.

http://twitter.com/GraemeDeyMSP/status/1851957295951024420

Background

Full text of letter from Kirsty Blackman MP to the Prime Minister and Chancellor:

“Dear Prime Minister, Chancellor,

“On Wednesday, the SNP welcomed the UK government’s decision to radically change its fiscal rules. The SNP has consistently called for more investment in our NHS and public services – and I hope we will now see meaningful real-terms increases for public services in each of the coming years.

“However, the UK budget did have a glaring omission – the failure to reverse the Labour government’s punitive welfare cuts or introduce any significant measures to tackle child poverty.

“It’s a scandal that 4.3million children are living in poverty – and, what makes it worse, is that the Labour government is actively choosing to push thousands of Scottish children into poverty by imposing damaging welfare cuts including the two child limit, bedroom tax and benefit cap.

“Following the UK budget, we now know for certain the Labour government had more than enough money to act – it just didn’t have the political will.

“Pushing this issue into the long-grass isn’t good enough. For every day the Labour government fails to act, more children fall into poverty – with damaging long-term consequences for their life chances. Indeed, the Resolution Foundation estimates a further 63,000 children will be hit by the Labour government’s two child benefit cap by April.

“I urge you to come back to Parliament, ahead of the spring budget, with an emergency package of measures to tackle child poverty. That means scrapping the two child limit and benefit cap, abolishing the bedroom tax and matching the SNP government’s Scottish Child Payment UK-wide by raising the child element of Universal Credit by £26.70 per child per week.

“Institute for Fiscal Studies (IFS) research has shown this package of measures would lift around 1.2million children out of poverty. By failing to act, the Labour government is therefore making a political choice to keep more than a million children in poverty.

“In Scotland, the SNP government is prioritising action on poverty, including through progressive policies like the Scottish Child Payment, Best Start Grant, Baby Box, free school meals and free child care but, for every step we take forward, Westminster cuts are dragging us back again.

“At Prime Ministers Questions in July, you said the number of children in poverty in Scotland has risen by 30,000. Yet, what you failed to mention, is that more than 87,000 Scottish children are being impacted by the Labour government’s two child benefit cap alone. It is your own Labour Party welfare cuts that are pushing Scottish children into poverty.

“I hope we can agree that the time for UK government action is long-overdue – and I look forward to your response outlining when we will see this emergency action.

“Kirsty Blackman MP

“SNP Work and Pensions spokesperson”

IFS research showing the SNP’s proposed package of measures will lift around 1.2 million children out of poverty: https://ifs.org.uk/calculators/how-reduce-child-poverty-compare-policy-options

House of Commons Library research showing the number of Scottish Children in Households impacted by the Labour government’s two child benefit cap: