Labour MP Chris Hinchliff has proposed a notable increase in Universal Credit payments, suggesting an extra £620 per month. This proposal was raised in Parliament, asking if the Government would consider enhancing the child element of Universal Credit to offer more financial support to families with multiple children, thereby helping to reduce child poverty.
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£620 Monthly Universal Credit Increase
Universal Credit recipients with children receive additional payments alongside their standard monthly allowance to help cover the extra expenses of raising children. The existing system provides additional funds for the first and second child. Moreover, under certain conditions, there are extra payments for third and subsequent children born before April 6, 2017, ensuring families with older children are included.
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Proposed Additional Rates
Mr. Hinchliff, who is the representative for North East Hertfordshire, inquired if the Government could contemplate the introduction of new rates for the third and subsequent children. He proposed possible rates, including:
- £287.92 for the third child
- £191.95 for the fourth child
- £143.96 for additional children
If a claimant were to receive all three additional payments, their claim could increase by £623.83 a month or £7,485.96 annually. This proposal aims to provide more significant financial support to larger families, ensuring they have the resources needed to care for their children.
Government’s Response
Work and Pensions Minister Alison McGovern responded to the proposal, detailing the Government’s plans. She emphasized the Government’s dedication to addressing child poverty and outlined several initiatives to support children and families. One such initiative is the introduction of free breakfast clubs in every primary school, which ensure that children receive a nutritious breakfast and are prepared to learn, positively impacting their well-being and academic performance.
Development of New Child Poverty Strategy
Formal work on developing a new child poverty strategy will begin following initial engagement. The Government plans to release a complete terms of reference in the coming weeks. This strategy will explore using all available resources across government and society to create the necessary changes for children. A ministerial task force will oversee the development of this ambitious strategy, ensuring it aligns with the opportunity mission and addresses the fundamental causes of child poverty.
Current Universal Credit Rates
Under the current system, a Universal Credit claimant can receive:
- £333.33 a month for their first child if born before April 6, 2017
- £287.92 a month for their first child if born after this date
- £287.92 a month for their second child
- Additional amounts for other children under certain circumstances
These rates aim to provide financial support to families with children, helping cover the extra costs of raising a family.
Summary
Child Position |
Proposed Rate (£) |
|---|---|
Third Child |
£287.92 |
Fourth Child |
£191.95 |
Further Children |
£143.96 |
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