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)