Black and white picture of single mum with pram.

IPPR call for “Family Stimulus” pack

The Institute for Public Policy Research (IPPR) have released a report which calls for a “Family Stimulus” pack as a way to avoid cash-strapped families going under as a result of the Coronavirus pandemic.

The report puts several points forward that suggest by increasing certain benefits to low-income households, the economy could see a net-positive return.

One of the suggestions in the report is that by doubling child benefit, there could be a £14bn boost to the economy , as well as keeping some families above water.

There would also be a boost to GDP of almost £19bn.

As well as this, it suggests that the Government consider removing the 2-child limit on Child Tax Credit as a way of injecting approximately £11bn into the economy as well as lifting almost 500,000 children out of poverty.

The report concludes:

“Families have and will continue to struggle through the pandemic. To limit the damage, urgent uplifts should be applied to the significantly weakened social security system for families with children. Such payments will reduce child poverty, whilst also stimulating the economy.

“Although our proposed UC and child tax credit reforms (including removal of the two child limit) may be more efficient per pound spent than child benefit increases, wider considerations should weigh in as to the right approach. The figures involved are relatively modest in relation to the government’s response so far, but could make a huge difference to the lives of millions of people.”

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