17/01/2013

Benefits Squeeze Could Lead To More Child Poverty

Some 200,000 more children could be pushed into poverty due to cuts applied tax credits and child benefits, the government has admitted.

The figure of 200,000 comes from a government decision to increase in-work and out-of-work benefits by just 1% over the next three years rather than increasing them in line with inflation.

Before now ministers had avoided commenting on the possible impact this would have on child poverty – an official government measure that looks at the number of households with incomes at 60% or below the national average.

However in response to a parliamentary question, work and pensions minister Esther McVey estimated that "the uprating measures in 2013-14, 2014-15 and 2015-16 will result in around an extra 200,000 children being deemed by this measure to be in relative income poverty compared to uprating benefits by CPI [consumer price index]".

Labour, long critical of the benefit squeeze, have attacked the government saying the figures showed how children were the victims of “political games”.

The Guardian reported shadow chancellor Ed Balls as saying: "The true character of this Conservative-led government has now been exposed. While they give the richest 2% of earners a £3bn tax cut, 200,000 children will be pushed into poverty and millions of working families made worse off.

"Ministers have spent weeks refusing to admit what the impact of their policies would be on child poverty and now we know why. Children are paying the price for David Cameron and George Osborne's economic failure and the political games they have decided to play."

(H)

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