"Like many in Hackney, we are very concerned about the impact on the borough's most vulnerable residents of the recent cuts announced by the Government. The Government's own changes to Housing Benefit, Job Seekers Allowance, and other benefits are all likely to affect most those in need." Mary Cannon, CEN Chair
Wednesday, 9 November 2011
Dramatic increase predicted for child and working-age poverty
A new study undertaken by the Institute for Fiscal Studies – Child and working-age poverty from 2010 to 2020 – finds that, as a result of the Coalition's reforms:
• The number of children in relative poverty is forecast to rise from 2.6 million in 2009-2010 to 3.3 million by 2020-2021 (before housing costs), and the number of working-age adults in poverty from 5.7 million to 7.5 million by 2020-2021.
• Relative child poverty will rise from 20% to 24% by 2020-2021, the highest rate since 1999-2000 and considerably higher than the 10 per cent target in the Child Poverty Act.
• Absolute poverty will rise considerably in the next few years as earnings growth is forecast to be weak but inflation high.
Whilst Universal Credit is expected to reduce poverty, the effect of other government changes to personal taxes and state benefits will offset this.
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