Research indicates that over 20% of British children born during the “austerity generation” have experienced poverty for at least half of their childhood, a situation largely attributed to welfare benefit reductions implemented by Conservative administrations in recent years.
The study highlights that the number of children born after 2013 who have lived in poverty for a minimum of six out of their first eleven years has significantly increased following the freezing of working-age benefits and the introduction of policies like the two-child limit.
These austerity measures, which drastically reduced annual welfare expenditure by tens of billions of pounds and cut thousands of pounds from the budgets of low-income families, have effectively pushed hundreds of thousands more children into prolonged poverty.
A study conducted by the University of Oxford describes the rising number of children experiencing lengthy periods of poverty during their formative years as a “significant social issue,” one that could have long-lasting negative effects on their health, education, and future opportunities.
Selçuk Bedük, one of the study’s co-authors, noted that the austerity cuts implemented post-2013 not only increased the number of children facing poverty but also extended the duration of their hardship. Consequently, approximately 23% of British children now experience long-term poverty as a defining aspect of their childhood.
“Our research indicates that policy decisions are crucial; when support for low-income families is robust, long-term childhood poverty decreases. Conversely, when such support is diminished, a greater number of children are forced into sustained poverty,” Bedük stated.
The austerity measures, orchestrated by former Chancellor George Osborne and former Welfare Secretary Iain Duncan Smith, included the introduction of the benefit cap, the bedroom tax, and the two-child limit on benefits, alongside cuts to universal credit. By 2021, these policies had led to a reduction of approximately £37 billion annually in welfare spending.
While the Conservative government raised minimum wage levels during this time, believing that employment was the most effective way to combat poverty, the study found that the overall impact of these wage increases was overshadowed by the extensive benefit cuts, resulting in minimal effect on relative poverty rates.
The detrimental consequences of austerity on childhood poverty are contrasted in the study with the anti-poverty initiatives introduced by Labour Chancellor Gordon Brown in the late 1990s, which saw a 60% increase in spending on child benefits and tax credits over seven years. Under Labour’s efforts to reduce child hardship, long-term poverty rates among children born in 1991 fell from 25% to 13% for those born in 1998-99, marking the lowest level in three decades.
Earlier this month, the government announced the abolition of the two-child benefit limit, which restricted universal credit support to families with only their first two children. This reform is part of a broader strategy aimed at addressing child poverty and is expected to uplift around 450,000 children out of poverty by the end of the decade.
Additionally, the government has revealed various initiatives, including raising the minimum wage and broadening access to free school meals for all families on universal credit. However, the benefit cap and the bedroom tax remain unchanged.
The Oxford study monitors cohorts of children born in England, Wales, and Scotland from 1991 to 2017 and utilizes data up until 2024. It is the first research to demonstrate that alterations in benefits policy significantly influence the long-term exposure of children to poverty.
Pat McFadden, the Secretary of State for Work and Pensions, commented, “One of the Labour government’s most notable achievements was lifting hundreds of thousands of children out of poverty and enhancing their prospects. The policies enacted by the Conservative party during their time in office resulted in too many children and families suffering. While we cannot reverse the events of that era, this Labour government is actively reversing the consequences of those Tory decisions.”
“That is why Labour is implementing free breakfast clubs, expanding free school meals, and eliminating the two-child benefit cap—initiatives that will help nearly half a million children escape poverty. Much has been accomplished, but there is still a significant amount of work ahead to ensure that poverty does not hinder children from reaching their full potential.”
