Child poverty ‘may hit record levels’
Warning of a growing social crisis
SOCIETY: Campaigners have warned of an escalating social crisis as a study revealed child poverty risks hitting record levels in the next few years due to “stagnating” living standards.
The new report revealed that the incomes of typical workingage households are not forecast to rise materially over the next two years.
CAMPAIGNERS HAVE warned of an escalating social crisis as a new study has revealed child poverty risks hitting record levels in the next few years due to “stagnating” living standards.
Researchers from the Resolution Foundation have published the report today which has revealed that the incomes of typical working-age households are not forecast to rise materially over the next two years.
The think-tank claimed that the “bleak” forecast for living standards is mainly driven by weak pay growth, which is projected to remain below pre-crisis levels of four per cent despite recent increases.
Ongoing welfare cuts are set to cause a “sharp rise” in relative child poverty, so that by the end of the current Parliament the proportion of children living in relative poverty is set to reach 37 per cent, according to the foundation.
The researchers added that, by the end of the current Parliament, most children in single parent families or in those with more than two children, could be living in relative poverty.
Adam Corlett, a senior economic analyst at the Resolution Foundation, said UK households have already taken a £1,500 a year hit to their incomes, compared to financial expectations before the 2016 referendum over Britain’s membership of the European Union.
He said: “There’s now a huge risk that their incomes stagnate over the next few years, as the economy’s pay performance struggles to get out of first gear.
“The outlook for low and middle income families is particularly tough, with ongoing benefit cuts set to drive down income levels and drive up child poverty.
“The UK’s current economic outlook is highly uncertain, and will hopefully surprise on the upside, but whatever direction the economy takes, the Government must reassess the continuation of working-age welfare cuts. Otherwise, its non-Brexit record risks being stained by a return to record levels of child poverty.”
Campbell Robb, the chief executive of the York-based Joseph Rowntree Foundation, claimed there is a “continuing failure to get to grips” with rising child poverty.
He added: “It is within the Government’s power to stem the rising tide of child poverty before it reaches a record high.
“The benefits freeze is the single biggest policy pushing families into hardship. Low-income families cannot afford another year of their support falling further behind the prices they have to pay.”
The Government stressed its priority is to “support people to improve their lives”, which has been aided by measures since 2010 including the introduction of the National Living Wage, tax cuts for 32m people and increasing free childcare for three and four-year-olds.
A spokesman added: “But we know that some people need more support. That’s why we’re spending £90bn to support families who need it, and by 2022 we will be spending £28bn more on welfare than we do now.”
There’s a huge risk that their incomes stagnate over the next few years. Adam Corlett, senior economic analyst at the Resolution Foundation.