Although the latest figures across the UK show that overall child poverty rates fell slightly in the first year of the pandemic due to a temporary £20-a-week rise in Universal Credit, detailed analysis shows that child poverty continued to rise in areas such as Sunderland, Newcastle and Middlesbrough. End Child Poverty, a coalition of poverty charities which published the analysis, called for a new national poverty strategy, warning that child poverty rates in the UK were “on the brink” and would rise sharply as a result of the repeal of the £20 uplift last October. Although the government’s cost of living support package announced one-off payments of at least £1,200 to low-income families this year, the coalition believes these temporary measures will only partially remedy dramatic rises in energy bills and food prices. Chart of child poverty rates by UK region The first installment of a £650 payment to low-income families receiving Universal Credit, Jobseeker’s Allowance and other benefits is to be paid out over two weeks from Thursday. Energy prices are set to soar in the autumn, with the price cap rising to £3,244 a year in October and £3,363 a year in January. The current cap, already at record levels, is at £1,971. Child poverty rates also rose in Wales, up to 34% in 2020-21 compared to 31% in the year before the pandemic. This compares with an England average of 29% (30% in 2020-21), 21% in Scotland (24%) and 24% in Northern Ireland (24%). The UK average was 27%. The rise in child poverty in the North East and Wales was partly attributed to the higher number of households receiving benefits under the old ‘old system’, rather than universal credit. These households were exempted from the £20 increase. Map of changes in child poverty between 2014-15 and 2020-21 in UK local authorities “Rather than rising, it is clear that inequalities for children and young people in the North East are widening even further – and this must surely act as a stark wake-up call to both the current and incoming Government about the scale and urgency of child poverty crisis we face,” said Anna Turley, Chair of the North East Poverty Commission. The Northeast has seen a sharp change in child poverty in recent years. In 2014, rates were at 26%, joint second lowest in England. The latest figures show that 38% of children in the North East of England were living below the poverty line in 2020-21, up from 37% the previous year. The 11 local government areas in the UK with the biggest increases in child poverty over the past six years were all from the North East of England, with Newcastle upon Tyne, Redcar and Cleveland, Gateshead and Middlesbrough recording significant increases. At least 40% of children are growing up poor in a third of the region’s parliamentary constituencies, including the “red wall” constituencies that voted Conservative in 2019 – Redcar (41%) and Bishop Auckland (40%). Nationally, the highest poverty rates continue to be in big cities, with Tower Hamlets in London continuing to record the highest child poverty rate in the UK at over 51% in 2020-21, up from 56% in 2019-20 . The parliamentary seat with the highest rate of child poverty is Bethnal Green and Bow (56%). Last week, a cross-party coalition on poverty was set up, chaired by Tory peer Lady Stroud, who said a new plan was needed as “poverty levels in this country are very high and the government has no strategic approach to tackling poverty”. Shadow welfare secretary Jonathan Ashworth said: “As the cost of living crisis grows more acute, the desperation families face is set to worsen. But instead of offering solutions, a parade of Tory leadership candidates are promising billions in unfunded tax cuts that risk deep cuts to universal credit, pushing even more children into poverty.” A government spokesman said: “The latest figures show there were 500,000 fewer children in absolute poverty after housing costs than in 2009/10. But we recognize that people are struggling with rising prices, which is why we’re protecting the 8 million most vulnerable families with direct payments of at least £1,200 starting this week. “Through our £37bn support package, we are saving the typical worker over £330 a year through a tax cut this month, allowing people on Universal Credit to keep £1,000 more than what they earn, and in April we significantly increased the ” National Living’ Wage to £9.50, biggest ever rise’.
