Welfare changes will lead to big rise in poverty

| October 12, 2011
”Welfare

According to a report by the Institute for Fiscal Studies (IFS), Government welfare changes will mean there will be 3.1 million children in poverty in the UK by 2013.

Typical families will see their annual income fall by around £2,000 by the year 2013, warned the IFS, pushing 600,000 more children into poverty.

The independent financial research organisation said the current economic situation is partly the reason for the rise in poverty, as well as the Government’s welfare overhaul.

In the Government’s emergency budget in June 2010, it was revealed that the benefits system would be in line for a radical overhaul.

The massive overhaul is aimed at helping people get back to work but, at the same time, end the situation where some risk losing out financially if they take a job.

The Government has already announced reductions to the child tax credits system, while child benefit was frozen.

However, a spokesperson for the Department for Work and Pensions said benefits changes would tackle poverty by “making work pay”.

Work and Pensions Secretary, Iain Duncan Smith, recently said the radical welfare reforms are designed to make a life on benefits “no longer an option”.

The massive overhaul is aimed at helping people get back to work but, at the same time, end the situation where some risk losing out financially if they take a job.

The Government is proposing a Universal Credit, which is designed to replace six income-related work-based benefits.

Meanwhile, commenting on the projections by the IFS, Barnardo’s chief executive Anne Marie Carrie said: “The projected figures for child poverty revealed today are a tragedy.

“This isn’t just about statistics as every day thousands of families are being forced into making choices between heating or eating,” she added.

The IFS report comes at a time when households are also being squeezed by higher inflation, rising unemployment and sluggish wage growth.

Tags: child poverty, , , , , , welfare changes


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