Recent changes by the Department for Work and Pensions (DWP) have reportedly reduced the financial disincentive for parents on benefits when considering larger families. This development comes alongside figures from the Office for National Statistics (ONS) revealing that 252,000 children currently live in households where no one has ever worked, marking the highest level in 13 years.
The ONS data, covering the second quarter of this year, shows an increase of 30,000 children since the start of the year, and 84,000 more than the same period last year. This equates to 1.9 per cent of all UK children, or nearly one in 50.
This period coincides with the Labour government’s removal of the DWP’s two-child benefit cap in April, a change that has sparked considerable political debate.
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Conservative Party shadow work and pensions secretary Helen Whately criticised the government, asserting that making benefits more accessible under Labour has contributed to the rise in children growing up in households without employment. She stated, “Under Labour, thousands more children are growing up in homes where nobody works. These are the worst figures for over a decade. These parents are living life on benefits and these children will grow up knowing no different. Labour has killed jobs and made it easier to get benefits. The taxpayer is footing the bill but children are also paying the price.”
Meanwhile, overall UK unemployment is projected to rise above 5 per cent later this year amid ongoing economic challenges. Last year’s ONS statistics also highlighted that 53.3 per cent of people lived in households receiving more in benefits than earnings.
Labour market data indicates a decline in UK payroll employment, with 13,000 fewer employees in July alone and a total decrease of 183,000 since June 2024, just before the general election. Younger workers face particularly high unemployment levels, with 16.2 per cent of 16 to 24-year-olds unemployed, equating to 739,000 individuals.
These figures underscore continuing concerns about employment prospects and welfare dependency among UK families, especially the impact on children in workless households.