MCR Pathways has called for the UK Government to honour its previous pledges to ensure every young person has an equality of educational outcomes, career opportunities and life chances.
In this budget, the Government has set out several steps towards this equality of outcomes. In particular, we welcome the reversal of the two-child benefit cap as these changes will give many families the much needed relief they desperately need. The reversal of this policy provides a solid foundation from which to build towards the eradication of child poverty.
However, the Government must go further to fully support the young people of the UK to fulfil their potential and achieve an equality of life opportunities.
Child Poverty
The UK Government’s decision to scrap the two-child limit in its entirety is momentous and transformational for many families, children and young people across the UK. This long-overdue reversal will lift 450,000 children out of poverty across the UK (UK Government) and, by Fraser of Allander Institute estimates, lower child poverty levels in Scotland by an entire percentage point in 2026-27 (Fraser of Allander Institute). MCR Pathways, alongside many other third and voluntary sector organisations, has long called for this disastrous policy to be scrapped, and we are pleased to see the Government has listened to our calls to end the single greatest driver of child poverty in the UK.
This, alongside other government investments into extending free school meals and the new commitment to invest £5 million, replenishing secondary school book supplies, will support bridging the gap in educational outcomes that children and young people experiencing poverty face in comparison to their peers, which, if upheld, will create the largest reduction in child poverty by a UK Government since records began.
“Scrapping the two-child limit on child benefit is a hugely positive step and one that will make a real difference for families who have struggled for far too long. It’s a big move in the right direction on child poverty and I am pleased to see a policy change that will genuinely improve lives. I hope this is the start of a bigger commitment to giving every child the support and opportunities they deserve.” – Susanne Richards – Co-Chair, Young National Advisory Board, MCR Pathways
The continued freeze of income tax thresholds alongside the decision to retain the benefit cap still leaves many of the UK’s most economically vulnerable families trapped in or on the cusp of poverty. In-work poverty is more prevalent than ever, with 72% of all children living in poverty in the UK, despite one or more of their parents being in work (CPAG). It is unacceptable that working families are now at greater risk of being in poverty.
The UK Government must ensure that its new Child Poverty Strategy is released urgently and incorporates the full scrapping of the benefit cap, so that all children in poverty can truly benefit from the initial steps announced through this budget.
The UK Government also announced increases to the National Minimum Wage and National Living Wage. This ‘cash first’ approach is a positive step to boosting incomes for young people in the UK who are more likely to be in lower-paid, insecure work. The inclusion of 16-17 year old apprentices within this increase is also encouraging. We know that far too often many young people, especially Care Leavers, drop out of apprenticeships due to low pay and insecurity. This is why we are supporting calls in Scotland to introduce a Minimum Income Guarantee for Care Leavers in Modern Apprenticeships and, when introduced, we would like to see this replicated across the UK. You can find out more here: Staf.
Whilst these increases in pay will positively impact many young people, they still don’t cover the full cost of living for young people across the UK, unlike the Real Living Wage (The Scottish Council for Voluntary Organisations). The UK Government must continue to work towards and commit to meet the Real Living Wage.
Eradicating child poverty is a top priority for MCR Pathways. To find out more about how we will play our role in this increasingly important area, read our report here.
Widening Access
There is great cause for hope when looking at post-school destinations for the UK’s young people. The commitments made by the Government through the £1.5 billion investment into the recently announced Youth Guarantee and Growth Skills Levy will greatly support in getting young people across the UK into positive post-school destinations that are right for them. MCR Pathways welcomes these measures, which allows both young people greater options in post-school training, and small & medium-sized enterprises more flexibility in establishing training programmes for recent school leavers.
With NEET figures rising in the last academic year, we call upon the UK Government to ensure that this funding is spread across a number of measures that can support young people to reach and sustain positive post-school destinations, including providing every young person with a trusted adult.
For the third consecutive year, every school leaver in England who has been mentored through MCR Pathways has progressed from school into EET (Education, Employment or Training). Not one left, progressing into NEET. Programmes like ours are proven to support young people into positive post-school destinations and can support the government in their endeavour to tackle the number of young people in NEET. Together we can ensure that they have all the support they need to ‘learn and earn’ (UK Government).
Care Experienced Rights
Despite the Chancellor’s pledge that “every child has equal worth and deserves an equal chance to opportunities”, there was no mention of any investment and further resources to support and improve the lives of the Care Experienced Community in the UK. There has been a persistent gap in allocated spending and resources for Care Experienced Young People and Children. Opportunities have been missed to prioritise and resource early intervention, as well as to enhance existing support to begin to deliver on the Chancellor’s pledge.
In our pre-budget statement, we called for a Core Offer of a Trusted Adult Guarantee for all Care Experienced Young People, which is seen as essential in successfully transitioning to adulthood. This was not included, nor was any work to establish Care Experience as a Protected Characteristic. MCR Pathways continues to call on the government to rectify this so that care-experienced young people benefit from the protections provided in the Equality Act (2010).
Conclusion
The UK Government must continue to build momentum in addressing the numerous inequalities and challenges faced by families and individuals most at risk of experiencing poverty across the country. There are many positive changes being implemented in this budget, but these do not detract from the several, maintained policies that negatively impact young people and their families. Benefits and welfare are only part of the solution needed to bridge the gap between those with and those without in the UK. Larger infrastructural changes are needed to sustain this positive step.
MCR Pathways will continue to work until every young person has the best possible start in life and a trusted adult to help them find their way.
For further information about our policy and influencing work, please contact – policy@mcrpathways.org
