Social security support for children needs ‘urgent uplift’ in order to limit damage of COVID-19 pandemic, say IPPR and TUC

New report argues that either doubling child benefit, or increasing the child elements in universal credit and tax credits by £20, would reduce child poverty and stimulate the economy

Social security support for children needs an 'urgent uplift' in order to limit the damage of the coronavirus (COVID-19) pandemic, according to the Institute for Public Policy Research (IPPR) and Trades Union Congress (TUC).

In a joint report, A family stimulus: Supporting children, families and the economy through the pandemic, the IPPR and TUC highlight that, without significant further government action next year, unemployment could more than double from pre-COVID-19 levels, and that the social security system will be increasingly important for preventing poverty and destitution among families.

Making the case for a 'family stimulus', the IPPR and TUC recommend an urgent uplift in the social security system by either - 

• doubling child benefit - increasing it by £21.30 per week for the first child and £14.15 for subsequent children - which would bring 500,000 children out of poverty and inject £11 billion into the economy; or
• increasing the child element of universal credit and child tax credit by £20 per week per child and removing the two-child limit - which would bring 700,000 children out of poverty and inject £14 billion into the economy.

Estimating that the cost of the proposals would be £10 billion for the child benefit changes and £7.5 billion for the universal credit and tax credit changes if introduced in 2021/2022, the report points out that the figures involved are relatively modest in relation to the government’s response so far, but could make a huge difference to the lives of millions of people. 

NB - considering the merits of each proposal the IPPR and TUC observe that, while increases in universal credit and child tax credit better target low income families, child benefit reform may remain a more desirable option due to its widespread coverage, reliability, and the fact it is paid to the primary carer which increases the likelihood it will be spent on children.

Also recommending targeted investment in childcare to ensure the continued functioning of the sector, the IPPR and TUC conclude - 

'Alongside other stimulus measures, these interventions could be crucial to prevent the economy from entering a negative spiral of low growth, low incomes and higher poverty. A broad-based stimulus should be aimed at accelerating good job creation and wider productive investment, along with strengthening social security more generally. At a minimum, this should include retaining the additional £20 boost to universal credit and tax credits and removing the benefit cap.'

For more information, see A family stimulus: Supporting children, families and the economy through the pandemic from ippr.org