Welfare reform and the impact on children ADES/ADSW Joint seminar on children 7 th May 2013

Child Poverty in Scotland: context (21%) children living in poverty (2010/11after housing costs – 17% or before housing costs) some children at even greater risk affects families across Scotland impact on education, health and life chances nothing inevitable about this poverty not starting from scratch….. −real progress: since 1998 over fewer children in poverty in Scotland −policy worked: at UK and Scotland level …..but huge challenges ahead

Welfare reform: impact on children By 2015 estimated £2bn cut from household incomes in Scotland alone Briefly outline: Changes already implemented Changes being implemented and still to come Impact on household incomes and poverty levels Some thoughts on what education and social work professionals might do to protect families

What has happened already? Basis for uprating benefits cut by using CPI rather than RPI in 2011/12 and 2012/13 then capped at 1% to 2015/16 Children and families Cuts to pregnancy and maternity grants, child benefit frozen and recovered from higher earners, tax credits cut – including working tax credit and childcare support Housing Cuts to maximum housing benefit payable in private sector, under 35s only eligible for single room in shared housing, support with mortgage interest payments cut Disabled people IB claimants reassessed under tougher test for ESA and contributory ESA withdrawn after a year

From April 2013 PIP starts to replace DLA with new assessment designed to cut number of claimants HB cut for tenants of social landlords if spare bedroom (‘bedroom tax’) DWP Discretionary social fund replaced with SG/LA Scottish Welfare Fund Benefit cap Council tax benefit replaced with council tax reduction scheme

From October 2013 Universal Credit starts to replace working age means tested benefits and tax credits payable in or out of work not expected to result in net reduction in benefit entitlement, but winners and losers lower amounts for most disabled adults and children claims and admin online: ‘digital by default’ single monthly payments, including amount for rent increased conditions and risk of sanctions

Impact on families and child poverty  lowest-income households with children affected the most as a proportion of income and “child poverty that is forecast to rise most quickly” (IFS, 2012)  Forecast at 2011 that child poverty will increase by children in Scotland alone (SG based on IFS 2012).  subsequent 1% benefit uprating cap will increase child poverty by in Scotland alone (SG, 2013).  benefit changes and lower wage growth forecast to leave majority of children below the Minimum Income Standard by 2015 (TUC, 2013)

What can professionals do? assess implications for children and family services proof impact of all policy and spending decisions greater focus on attainment gap reduce additional costs at school and review charging for other services? identify and address barriers preventing full participation of children from low income families? explore potential for better provision and signposting/referring of families to benefits advice? family friendly employment that pays living wage? advocacy – individual and collective