Tackling Child Poverty in a New Cost of Living Crisis

New Government figures have shown that 13.4 million people are now living in relative poverty in the UK, including four million children. As “awful April” price rises kick in, families are once again being squeezed at the pump, supermarket aisle and through mortgage and water bills; another cost-of-living crisis through no fault of their own. 

With the conflict in Iran unleashing devastating economic impacts, we need an urgent cost-of-living plan to help struggling families, while remaining laser-focused on tackling the root causes of poverty in the long term.

Against this backdrop, the introduction of the Universal Credit Bill on Monday was genuinely welcome. Scrapping the two-child limit is a policy the Liberal Democrats have long campaigned for, as the damage it has caused to families has been felt daily. Since it came into force in 2017, the Child Poverty Action Group estimates that the limit has pushed 109 children into poverty every day.

For many low-income families, including many across Newbury and West Berkshire, this change will be a lifeline. Payments equal to about £300 a month for each additional child in the household could ease impossible everyday choices between heating the house, falling behind on energy bills, or skipping meals so their kids can eat. This is the compassionate and cost-effective choice and will make an immediate difference for so many.  

A Local Challenge

But even with this significant change, and despite people doing all they can, incomes simply aren’t stretching far enough. In Newbury and West Berkshire, child poverty has risen by over 50% since 2014. Local organisations, such as Home-Start West Berkshire, have seen first-hand both the transformative potential of early support and the shattering impact of years of underinvestment. 

The Chancellor has indicated that support with soaring energy bills might not come until the autumn. However, when households are being hit by global events that are beyond their control, the Government must act to ease the pressure immediately.  

In this crisis, the Liberal Democrats are calling for an emergency transport package of support to help families, pensioners, and businesses with the costs of this war: 

• Cutting fuel duty by 10p, to bring down prices at the pump by 12p per litre

• A reduction in the cap on bus fares from £3 to £1

• Cutting rail fares by 10%

• Slashing VAT on public EV charging from 20% to 5%

Rather than just firefighting from crisis to crisis, if the Government are serious about reducing poverty over the next decade, we must invest earlier. Investing in genuinely affordable social housing, childcare, and quality skills support does not just support children today, but lays the foundations for the long-term prosperity of our local economy.

Every child deserves the chance to play, learn, and develop without poverty holding them

back. The Universal Credit Bill is a strong first step, but in the face of rising costs, we must act now to help people through the crises today, while delivering the sustained change needed to end child poverty for good.