UNIVERSITY OF YORK
Social Policy Research Unit
Jonathan Bradshaw and Antonia Keung
HELP FOR POOR FAMILIES WITH CHILDREN IN THE COVID-19
CRISIS: FURTHER ANALYSIS
The package of measures that the Government has announced
though welcome has as yet done nothing for families with children. Children
have been sent home from school and although vouchers have been promised for
free school meals children this will only help about 20% of children and none
of those under 8 who were getting universal free school meals (differences in
Scotland). We have
assessed the impact on child poverty using an increase in child benefits of
£10 per child per week compared with the £20 increase that has been announced
for universal credit (UC) and working tax credit (WTC). Child benefits would
reduce child poverty by 5 percentage points compared with only 1 percentage
point for the £20 on UC/WTC. Further because the £20 on UC/WTC does not cover
those on legacy benefits (JSA/ESA) they have an incentive to apply for UC
putting extra pressure on a system that is failing to cope with 500,000 new claims.
What other measures could help families with children? The
fertile mind of Gordon Brown, the architect of Labours child poverty strategy,
has suggested that we try the following options. We show the impact
cumulatively in the Tables below.
Table
1: Accept the £20 uplift to UC/WTC and increase child benefit by £5 per child a
week
|
Relative
child poverty rates
|
BHC
|
AHC
|
|
Before
top-ups
|
21.8%
|
29.5%
|
|
After
top-ups
|
17.5%
|
25.5%
|
|
Total
number of children in working age families
|
13,647,812
|
|
Note: without
adjusting the median income after top up. (HBAI 2017/18 weighted by GS_NEWCH)
Table 2: Extend
the £20 uplift to those still on JSA/ESA and increase child benefit by £5 per
week
|
Relative
child poverty rates
|
BHC
|
AHC
|
|
Before
top-up
|
21.8%
|
29.5%
|
|
After
top-up
|
17.2%
|
25.3%
|
|
Total
number of children in working age families
|
13,647,812
|
|
Note: without
adjusting the median income after top up. (HBAI 2017/18 weighted by GS_NEWCH)
Table 3: Accept
the £20 uplift to UC/WTC and increase child benefit by £5 per child a week and
award £10 extra per week to each dependent child in a family receiving UC (no two
child- limit applied – very few third and subsequent children born after April
2017 in 2017/18 HBAI. Anyway it should be abolished.)
|
Relative
child poverty rates
|
BHC
|
AHC
|
|
Before
top-ups
|
21.8%
|
29.5%
|
|
After
top-ups
|
17.5%
|
25.4%
|
|
Total
number of children in working age families
|
13,647,812
|
|
Note: without
adjusting the median income after top up. (HBAI 2017/18 weighted by GS_NEWCH)
Table 4: Extend
the £20 uplift to those still on JSA/ESA and increase child benefit by £5 per
week and award £10 extra per week to each dependent child in a family receiving
UC.
|
Relative
child poverty rates
|
BHC
|
AHC
|
|
Before
top-up
|
21.8%
|
29.5%
|
|
After
top-up
|
17.1%
|
25.1%
|
|
Total
number of children in working age families
|
13,647,812
|
|
Note: without
adjusting the median income after top up. (HBAI 2017/18 weighted by GS_NEWCH)
Table 5: Accept
the £20 uplift to UC/WTC and increase child benefit by £5 per child a week and
award £10 extra per week to each dependent child in a family receiving UC or a
family receiving CTC.
|
Relative
child poverty rates
|
BHC
|
AHC
|
|
Before
top-ups
|
21.8%
|
29.5%
|
|
After
top-ups
|
9.8%
|
15.4%
|
|
Total
number of children in working age families
|
13,647,812
|
|
Note: without
adjusting the median income after top up. (HBAI 2017/18 weighted by GS_NEWCH)
Table 6: Extend
the £20 uplift to those still on JSA/ESA and increase child benefit by £5 per
week and award £10 extra per week to each dependent child in a family receiving
UC or CTC.
|
Relative
child poverty rates
|
BHC
|
AHC
|
|
Before
top-up
|
21.8%
|
29.5%
|
|
After
top-up
|
9.5%
|
15.1%
|
|
Total
number of children in working age families
|
13,647,812
|
|
Note: without
adjusting the median income after top up. (HBAI 2017/18 weighted by GS_NEWCH)
Table 7: Accept
the £20 uplift to UC/WTC and increase child benefit by £5 per child a week and
award £20 extra per week to each dependent child in a family receiving UC
|
Relative
child poverty rates
|
BHC
|
AHC
|
|
Before
top-ups
|
21.8%
|
29.5%
|
|
After
top-ups
|
17.4%
|
25.4%
|
|
Total
number of children in working age families
|
13,647,812
|
|
Note: without
adjusting the median income after top up. (HBAI 2017/18 weighted by GS_NEWCH)
Table 8: Extend
the £20 uplift to those still on JSA/ESA and increase child benefit by £5 per
week and award £20 extra per week to each dependent child in a family receiving
UC.
|
Relative
child poverty rates
|
BHC
|
AHC
|
|
Before
top-up
|
21.8%
|
29.5%
|
|
After
top-up
|
17.0%
|
25.1%
|
|
Total
number of children in working age families
|
13,647,812
|
|
Note: without
adjusting the median income after top up. (HBAI 2017/18 weighted by GS_NEWCH)
Table 9: Accept
the £20 uplift to UC/WTC and increase child benefit by £5 per child a week and
award £20 extra per week to each dependent child in a family receiving UC or a
family receiving CTC.
|
Relative
child poverty rates
|
BHC
|
AHC
|
|
Before
top-ups
|
21.8%
|
29.5%
|
|
After
top-ups
|
7.99%
|
10.94%
|
|
Total
number of children in working age families
|
13,647,812
|
|
Note: without
adjusting the median income after top up. (HBAI 2017/18 weighted by GS_NEWCH)
Table 10: Extend
the £20 uplift to those still on JSA/ESA and increase child benefit by £5 per
week and award £20 extra per week to each dependent child in a family receiving
UC or CTC.
|
Relative
child poverty rates
|
BHC
|
AHC
|
|
Before
top-up
|
21.8%
|
29.5%
|
|
After
top-up
|
7.95%
|
10.89%
|
|
Total
number of children in working age families
|
13,647,812
|
|
Note: without
adjusting the median income after top up. (HBAI 2017/18 weighted by GS_NEWCH)