EHRC report on welfare reform predicts poverty

The Equality and Human Rights Commission has found that households with disabled people are more likely to lose income as a result of changes to the tax and benefits system. Published on 14 March 2018, the report looks at the impact of the 2010 to 2018 ‘welfare reforms’ on various groups in 2021 to 2022 and predicts:

  • an extra 1.5 million children in poverty
  • child poverty rate in single parent households up from 37% to over 62%
  • households with three or more children will lose around £5,600 a year

The report also finds:

  • households with at least one disabled adult and a disabled child will lose over £6,500 a year, over 13% of their annual income
  • Bangladeshi households will lose around £4,400 a year, in comparison to ‘White’ households, or households with adults of differing ethnicity, which will only lose between £500 and £600 on average
  • single parents will lose an average of £5,250 a year, almost one-fifth of their annual income
  • women will lose about £400 per year on average, while men will only lose £30

The negative impacts are largely driven by changes to the benefit system, in particular the freeze in working-age benefit rates, changes to disability benefits, and reductions in Universal Credit rates.

 

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