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Analysis reveals Government's in-work benefit cuts and public sector pay restrictions are the leading causes of rise in child poverty.

The number of South West children growing up in poverty in working households has shot up by 48% since 2010, according to new TUC research published today (Monday).

The analysis – carried out for the TUC by Landman Economics – estimates that 245,500 South West children with working parents will be below the official breadline in 2018.

This is an increase of 79,800 since the start of the decade.

Public sector pay restrictions and in-work benefit cuts

The analysis shows that 57,100 children (with working parents) in the region have been pushed into poverty as a result of the government’s in-work benefit cuts and public sector pay restrictions.

The TUC found that other key factors behind the 79,800 rise in child poverty include:

  • Weak wage growth
  • The spread of insecure work
  • Population growth
  • The increase in working families

Household incomes

The research shows the impact of public sector pay restrictions and in-work benefit cuts on household incomes.

The analysis reveals that:

  • Families where both parents work in the public sector are the biggest losers from the government’s pay restrictions and benefit changes. Their average household income has fallen by £83 a week in real terms.
  • Households where one parent works in the public sector and another works in the private sector have lost, on average, £53 a week.
  • Households with private sector workers only have seen their incomes fall by £31 a week on average.
Thousands of parents are struggling to feed and clothe their kids.

Thousands to march in London

The figures are published as tens of thousands of workers prepare to march in London this Saturday as part of the TUC’s ‘A New Deal for Working People’ demonstration.

The Labour Leader Jeremy Corbyn will address a rally in Hyde Park, that will also feature speeches by TUC General Secretary Frances O’Grady and frontline workers.

TUC Regional Secretary for the South West Nigel Costley said:

“Child poverty in working households has shot up since 2010.

“Years of falling incomes and benefit cuts have had a terrible human cost in the region. Thousands of parents are struggling to feed and clothe their kids.

“The government is in denial about how many working families just can’t make ends meet. That's why people from across the South West will be travelling to London this Saturday to demand a new deal for working people.

“We need ministers to boost the minimum wage now, and use the social security system to make sure no child grows up in a family struggling to get by.”

Editors note

Estimated increase in number of children living in poverty with a working parent since 2010 (nation/region)

Region

Number of children in poverty 2010

Number of children in poverty 2018

Extra children in poverty 2018 (000s)

Extra children in poverty 2018 (%)

North East

70,503

111,674

41,171

58%

North West

239,641

341,327

101,686

42%

Yorkshire

208,802

271,985

63,183

30%

East Midlands

125,812

221,979

96,167

76%

West Midlands

188,574

312,427

123,853

66%

East of England

179,997

261,799

81,802

45%

London

353,216

538,500

185,284

52%

South East

252,028

372,178

120,150

48%

South West

165,732

245,529

79,797

48%

England

1,784,305

2,677,398

893,093

50%

Scotland

121,680

184,755

63,075

52%

Wales

112,446

151,763

39,317

35%

Northern Ireland

55,622

88,788

33,166

60%

UK

2,074,053

3,102,704

1,028,651

50%

Source: Landman Economics Analysis and modelling for the TUC

 

Weekly cash loss from in-work benefit cuts and pay restrictions

Household type

Weekly loss (£)

Public sector workers only

-£83.03

Public and private sector workers

-£53.26

Private sector workers only

-£31.74

Source: Landman Economics Analysis and modelling for the TUC

  • The public sector pay analysis is modelled on real wages falling by 13.3% between 2010 and 2018 for workers in health and education. And by 14.3% for workers in public administration.
  • The data provided by Landman Economics are projections of child poverty in the 2018/19 tax year.  Landman Economics has estimated the impact of three further years of benefit and tax credit cuts, and the continuing roll-out of Universal Credit.
  • The analysis includes all tax and social security measures introduced under the 2010-15 coalition government and subsequent conservative governments, including Universal Credit.
  • The analysis uses the 2015/16 Household Below Average Income figures as its baseline. All figures are based on household income after housing costs.
  • The 600,000 figure is based on the number of children who would be in poverty had the 2010 system remained.
  •  A household is considered to be in relative poverty if its income is less than 60% of median income after housing costs.

The Trades Union Congress (TUC) exists to make the working world a better place for everyone. We bring together more than 5.5 million working people who make up our 49 member unions. We support unions to grow and thrive, and we stand up for everyone who works for a living.

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