One million more children could end up in poverty due to austerity policies

Government policy has created an austerity generation that is threatening to send one million more children into poverty, a new report has warned.

Research revealed that families already at greater risk of poverty such as lone parents and those with a disability will suffer the most from cuts to their income.

The report said cuts to Universal Credit will put one million more children into poverty, warning the long-term impact of austerity policies will be felt for years to come.

The promise of greater rewards from work made to working families has been “broken” because of cuts to Universal Credit and tax credits, according to the Child Poverty Action Group (CPAG) and the Institute for Public Policy Research (IPPR).

Losses for working families from cuts in the tax credit system average £930 a year and £420 a year from cuts to Universal Credit.

The report said a full-time working couple on the national living wage would have to work 17 extra days a year to make up losses caused by cuts in work allowances.

Alison Garnham, chief executive of the CPAG, said the report was “straightforward and shaming”.

“Since 2010, rather than investing in our children, government policy has been creating an austerity generation whose childhoods and life chances will be scarred by a decade of political decisions to stop protecting their living standards,” she said.