Poverty: Children – Parliamentary Written Answer

Chris Skidmore: To ask the Secretary of State for Work and Pensions what estimate he has made of the effect of (a) Universal Credit and (b) the Welfare Benefits Uprating Bill on child poverty.

Esther McVey (edited response): In the autumn statement (2012), it was announced that in light of the national economic situation, certain working-age social security benefits and payments, certain elements of tax credits, and child benefit, would be uprated by 1% rather than by prices (as measured by the consumer prices index ('CPI')) for the tax years 2013-14, 2014-15 and 2015-16. Because the relative poverty income line moves each year in cash terms some families will move below this line over the period.  We estimate 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.