The Department for Work and Pensions (DWP) has effectively reduced the financial disincentive for benefit-dependent parents considering larger families, according to claims from the Conservative Party. This follows the Labour government's decision to scrap the two-child benefit cap from April.
New figures from the Office for National Statistics (ONS) reveal that 252,000 children in the UK now live in a household where no one has ever worked. This is the highest level recorded in 13 years and represents 1.9 per cent, or nearly one in 50, of all UK children.
The number has risen by 30,000 since the start of the year and is 84,000 higher than the same period a year ago. The statistics cover the second quarter of this year, a period that saw the two-child benefit cap removed.
Shadow minister criticises DWP policy
Helen Whately, the Conservative shadow work and pensions secretary, criticised the DWP for making it "easier" to claim benefits. She said: "Under Labour, thousands more children are growing up in homes where nobody works."
Whately added: "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."
The ONS data also shows that overall unemployment is expected to climb above 5 per cent later this year as the economy struggles to pick up pace. This projection comes alongside other labour market indicators pointing to a slowdown.
Payroll numbers fall and youth unemployment rises
Separate figures show that the number of employees on UK payrolls dropped by 13,000 in July alone. Since June 2024, just before the general election, the total has fallen by 183,000.
Young workers have been hit hardest by the current labour market conditions. Unemployment among 16 to 24 year olds stands at 16.2 per cent, affecting 739,000 people.
ONS figures from last year revealed that in 2024, 53.3 per cent of people lived in households receiving more in benefits than they paid in taxes. This context underlines the scale of benefit dependency that the DWP rule change addresses.
