Inequality is rising, with most poor children living in working families.
Seventy per cent of poor children now live in working families, according to new government figures.
The figures are based on statistics released by the Government on household income in 2017-2018. The think tank Resolution Foundation says the data suggests government policy must shift back to focusing on supporting working parents.
The government statistics suggest typical household income fell by 0.2 per cent between 2017 and 2018 as average prices rose by around 3 per cent faster than most earnings, benefits or other income.
They also suggest that absolute child poverty worsened in 2017-18, with a rise of around 200,000 children (after housing costs). In addition, the proportion of low-income children experiencing material deprivation rose slightly. However, the proportion of children in relative poverty (after housing costs) remained stable at 30 per cent (or 4.1 million children).
The Resolution Foundation says there is little reason to think the current picture is much better than in 2017-2018. It says: “The big benefit cuts that weighed on income growth in 2017-18 – including the benefit freeze, the two-child limit [the two-child limit applies to all universal credit claims and awards from 6 April 2017] and abolition of the family element [of Child Tax Credit] – have continued.”