IFS Predicts “Big Rise in Poverty” Throughout UK
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October 11, 2011 TheFreshOutlook  |
The government defended its welfare reform bill today as the IFS predicts a “big rise in poverty” throughout the UK.
More than 600,000 children will be pushed into poverty by 2013, says the Institute for Fiscal Studies (IFS). In a report released on Tuesday, they maintain that falling incomes, alongside rising taxes and government welfare policies, were contributing to the “bleak” situation of child poverty.
The report shows that 2.2 million children were living in absolute poverty in 2009-10 and with median incomes dropping by 7% they suggest that figures will rise by 4.8% in 2013.
3.1 million children will be living poverty in the near future, says the IFS, with middle class families seeing the biggest drop in 35years.
The report, which was sponsored by the Joseph Rowntree Foundation, also predicts that an extra 8,000 adults will be in absolute poverty by 2012-13.
“The projected figures for child poverty released today are a tragedy,” said Barnardo’s chief executive Anne Marie Carrie.
“This isn’t just about statistics as every day thousands of families are being forced into making choices between heating or eating.”
Report co-author James Browne explained that child poverty was cut by a quarter during the last government. However, he added that this was not enough to reach specific goals. Mr Browne also argued that resent welfare policies could not achieve government targets.
Opposition ministers have used today’s report to criticise the coalition’s spending cuts.
“David Cameron promised us he would not increase child poverty. Now we have the truth,” said shadow work and pension secretary Liam Byrne.
“The Tory-led government’s decision to cut too far and too fast this year will condemn hundreds of thousands more children to grow up poor.
“All the progress our country has made in a decade fighting the scar of child poverty has been wiped out by the decisions of just one year. A generation of children will not thank Cameron,” he added.
In response to the IMF report, the Department of Work and Pensions (DWP) claimed they will tackle child poverty by “making work pay”.
“Universal Credit will substantially reduce child poverty,” a DWP spokesperson said. “It will make work pay for the first time, tackling in-work poverty and lift over one million people, including 450,000 children, out of poverty.
“Our wide-ranging reforms will have a dynamic impact on some of the poorest families, encouraging people into work, many for the first time, and improving the life chances of children at an early age.”
By Catherine Rees
[Image courtesy of Community Friend]
