UK Poverty Warning

Increasing numbers of children could be plunged into poverty.

A record five million children in the UK could be trapped in poverty by 2020, according to new research by Save the Children. 

A report released today, A Fair Start for Every Child, reveals that children have paid the highest price in the recession, with families hit by a triple whammy of years of flat wages, cuts to benefits and the rising cost of living which includes a 'poverty premium', the higher cost poor families often have to pay for goods and services, meaning it costs more to be poor.

Despite a cross-party commitment to end child poverty by 2020, new projections show the number of UK children living in poverty could increase by 1.4 million in the same period, a rise of 41% on the current 3.5million. In Scotland, it is estimated that child poverty could reach 28.5% by 2020. That’s an increase from one in five children today, to nearly one in three.

One of the starkest realities is that over the past 10 years, work has stopped being a sufficient solution to poverty for families with children. More than half the children in poverty in Scotland now live in working households. Further, new estimates for Save the Children suggest that 125,000 Scottish children live in working households earning below the living wage.

The UK now has one of the highest rates of low pay in the developed world. In a UK-wide survey of 4,000 parents on a range of incomes, Save the Children found that 50% of low income families have seen their incomes decrease in the last five years. Around 70% had found it difficult to meet payments, with more than 40% saying they got into debt as a result.

Family budgets are also being squeezed by rising prices: 

· Poor household budgets have been squeezed by food prices rising 19% more than the general price level of other goods between 2007 and 2011.

· Childcare costs have also soared with a nursery place for a child over two in Scotland rising by 31% between 2009 and 2014 and by 26% for a child under two.

· Our new modelling of the 'poverty premium' shows the additional costs of services and goods for poorer families across the UK had risen to £1639 a year at the end of 2013 – around 8% of income for families around the poverty line.

The report sets out the damaging effects of poverty on childhood and also a child's long-term future, increasing the chances of low attainment at school and impacting on future work opportunities and life-long income. As a result they are more likely to remain in poverty into adulthood, and so too their own family and children.

Child poverty also has an impact on health and diet, with two-fifths of parents saying income has an effect on the food they can provide for their family. Children in the most deprived areas of Scotland are significantly more likely to be at risk of obesity than those living elsewhere and are three times as likely to have poor diets compared to those in the highest income groups, making them more vulnerable to ill health as well as chronic long-term conditions like diabetes. 

Neil Mathers, Save the Children's Head of Scotland, said: 

"This report shows just how difficult childhood is for those in the poorest households compared with other children.

"Through our programme work in Scotland, we meet families who are really struggling. Too many children are being left behind, and far too many of our children are living in cold and damp homes, without healthy food, and with parents who can see no end to their situation.

"In Scotland, there is a shared commitment across political parties to tackle child poverty and ensure that Scotland is the best place in the world to grow up.

"Despite the historic cross-party pledge to end child poverty, the problem is set to become much bigger in Scotland. The cumulative impact of recent policies introduced across the UK –and of policies due to be introduced in the coming years – will be to considerably increase child poverty between now and 2020. Scotland has made real progress in reducing the number of children living in poverty but this progress is at risk of being wiped out. 

"I have said before that Scotland is at risk of falling head first into a child poverty crisis. The scale of this crisis gives even further cause for concern. The impact will affect individual children as well as our society and economy. We need increased action from parties across the UK and in Scotland, across public services and the labour market.

"We welcome the ambition in Scotland and the support put in place for children’s early years which could have a positive impact on the long-term life chances for children growing up in the poorest families, but we now need to ensure that we are doing all we can to tackle the causes of poverty." 

Save the Children is calling for: 

· Every child to have access to high quality and affordable childcare – policy makers should work towards minimising the impact of childcare costs on household budgets for low income families, whilst ensuring that childcare is available, affordable and of high quality in all areas.

· A minimum income guarantee for the families of children under five – this would ensure every family with children under five have sufficient resources for their healthy development and a good start to their childhood ahead of the primary school years. We propose that at the very least the 2020 targets are met for children under five.

· A national mission for all children to be reading well by 11 - as a key part of the approach to end the link between income, learning and development.