Child Poverty Could Rise by 100,000

Child poverty groups voiced dismay at Chancellor George Osborne’s decision to freeze tax credits announced yesterday.

Osborne promised in his April budget that the child element of working tax credit would be increased by £110 above inflation. He has now abandoned that promise as well as freezing the lone parent and child element of working tax credits.  This means that neither will rise in line with inflation, hitting the   poorest families hardest and moving an estimated 100,000 more children into poverty.   An estimated 65,900 families in Glasgow alone will be affected.   The news is likely to further dismay parents working in the public sector, whose pay will rise by only 1% from 2013-15.

However there was welcome news of the expansion of free nursery places, which will now encompass the poorest 40% of parents rather than the current 20%.  Money saved from tax credits will be used to fund the cap on fuel duty, rail fares and infrastructure projects announced by Osborne this week.

Source: Guardian

Tags: Poverty, Welfare