Thank you for contacting me about child poverty in Truro and Falmouth.
I firmly believe that children should grow up in an environment with no limits to their potential and that we must continue efforts to reduce poverty, including child poverty.
I welcome the Government’s commitment to reducing child poverty and supporting low-income families, and believes work is the best route out of poverty. With a record 1.3 million vacancies and unemployment at 3.8 per cent across the UK, focus is firmly on supporting people to move into and progress in work. This 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.
The multi-billion-pound Plan for Jobs has protected, supported and created jobs across the country. This includes our Way to Work campaign, which between January 31 and June 21, we estimate has seen at least 485,000 unemployed Universal Credit claimants have moved into work.
The Government is providing a £37 billion package of support to help people with the cost of living. More than eight million households on means tested benefits will receive a payment of £650 this year, made in two instalments. Eligible benefits include Universal Credit and Child Tax Credit. This is in addition to the £400 Energy Bill Rebate, £150 Disability Cost of Living Payment and £350 Pensioner Cost of Living Payment, and the £150 Council Tax rebate. Further support is available through the £1.5 billion Household Support Fund, which will be distributed by local authorities.
To support low income families further, the Government has increased the value of Healthy Start Food Vouchers to £4.25, helping eligible low income households buy basic foods like milk, fruit and vitamins. There is also investment of over £200m a year to continue the Holiday Activities and Food programme which is already providing enriching activities and healthy meals to children in all English Local Authorities. The Holiday Activity and Food programme benefitted over 600,000 children last summer.
It is right that the UC uplift was one of a range of measures which have been put in place to support jobs and livelihoods as part of a £280 billion package. Longer term, I welcome the decision announced at the 2021 Autumn Budget to reduce the UC taper rate from 63 per cent to 55 per cent, as well as increasing work allowances in UC by £500 a year. These changes to UC represent an effective tax cut for low income working households in receipt of UC worth £2.2 billion in 2022-23. I am glad that the Government has announced further support for UC recipients, with cost of living payments worth £650 each to be paid to eight million households later this year.
Regarding the benefit cap, this allows for a yearly income of £20,000 outside of London, and £23,000 within London, and I am not aware of plans to change this. However, I would emphasise that claimants with a sustained employment record may benefit from a nine-month grace period before the cap applies. Exemptions also apply for the most vulnerable claimants who are entitled to disability benefits and carer benefits.
Once again, thank you for taking the time to write. If you require any further assistance, then please do not hesitate to get in touch.
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