Disabled children and poverty

Four in every 10 disabled children are living in poverty

Our report shows that 4 in 10 disabled children (320,000) live in poverty in the UK, significantly higher than previous estimates. The Children’s Society warns that cuts in support for disabled children under the Universal Credit threaten to push even more disabled children into poverty.
Summary    Full Report

Currently, families with a disabled child may be entitled to receive support through the disability elements of child tax credit. Under the Universal Credit, this support is to be provided through 'disability additions' within household benefit entitlements.

The attached briefing note raises our concerns that the change will lead to a substantial cut in support for a large number of disabled children.

Universal credit changes could push more families into poverty

The policy intention of government is to halve the maximum level of support provided through the disability additions within Universal Credit, when compared to the disability element of child tax credit – reduced from £54 per week at current rates, down to £27 per week. This is equivalent to a loss of around £1,400 per year. This change could push families below the poverty line.

It could cost families with a child born with a disability around £22,000 by the time the child reaches 16 years old. The rate is paid per child, so a family with two disabled children could lose double these amounts.

All but the most disabled children (those receiving the higher rate care component of DLA) will stand to lose out substantially as a result of this change.

The Government estimates that this change will affect around 100,000 disabled children. An estimate form the Children’s Society puts the overall cut from this form of support to be around £100 million per year once fully implemented.