Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment her Department has made of the potential effect of the (a) reduction of the universal credit taper rate and (b) increase in the work allowance on the number of children in poverty.

It is not possible to produce a robust estimate of the effect of the reduction of the Universal Credit taper rate or the increase in work allowance on the number of children in poverty. Projecting the impacts of policies on poverty involves projecting forward the impact of the pandemic on every household’s income, which is not possible to do with confidence, not least because the latest comprehensive data on net incomes for households is from 2019-20, before the pandemic began. However, we do know that these changes will leave almost two million workers around £1000 better off per year on average.

Official child poverty statistics covering the period 2020/21, will be published in March 2022, as part of the Department’s (a) Children in Low Income Families and (b) Households Below Average Income publications, subject to the usual checks on data quality.

This Government has always believed that the most sustainable way to lift children out of poverty is by helping their parents to move into and to progress in work wherever possible. Our approach is based on clear evidence about the importance of parental employment - particularly where it is full-time – in substantially reducing the risks of child poverty and in improving long-term outcomes for families and children. In 2019/20, children in households where all adults were in work were around six times less likely to be in absolute poverty (before housing costs) than children in a household where nobody works. Compared with 2010, there were almost 1 million fewer workless households and almost 580,000 fewer children living in workless households in the UK in September 2021.

Furthermore, our multi-billion-pound Plan for Jobs, which has recently been expanded by £500 million, will help people across the UK to find work and to boost their wages and prospects.

However, we recognise that some people may require extra support over the winter as we continue our recovery from the impacts of the COVID pandemic, which is why vulnerable households will be able to access a new £500 million support fund to help them with essentials. This includes £421 million for the Household Support Fund, which will help vulnerable people in England with the cost of food, utilities and wider essentials.

We have also increased the value of Healthy Start Food Vouchers from £3.10 to £4.25, helping eligible low income households buy healthy foods such as milk, fruit and vitamins, and are investing over £200m a year from 2022 to extend our successful Holiday Activities and Food programme, which provides enriching activities and healthy meals to children in all Local Authorities in England.