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Handing free school meals to all children from households that claim Universal Credit WON'T drag 100,000 out of poverty next year, says IFS - because most already get them

Handing free school meals to all children from households that claim Universal Credit WON'T drag 100,000 out of poverty next year, says IFS - because most already get them

Daily Mail​2 days ago

The Government's suggestion that expanding free school meals will lift 100,000 children out of poverty next year has been disputed by a leading think tank.
Education Secretary Bridget Phillipson has announced that every pupil whose household is on Universal Credit will soon have an entitlement to free school meals.
The Department for Education said the extension, from the start of the 2026 school year, will see half-a-million more children benefit from a free meal every school day.
It also claimed that nearly £500 will be put back into parents' pockets every year, while the expansion will lift 100,000 children across England out of poverty.
But the Institute for Fiscal Studies (IFS) said the Government's announcement 'will not see anything like 100,000 children lifted out of poverty next year'.
This is because transitional protections introduced in 2018 - as parents on legacy benefits were moved on to Universal Credit - had 'substantially increased the number of children receiving free school meals today', the think tank added.
The IFS assessment will likely ramp up the pressure from Labour MPs for Sir Keir Starmer to do more to tackle child poverty.
The Prime Minister is facing widespread demands from within his own party to scrap the two-child benefit cap, amid the threat of a revolt over Labour's welfare reforms.
The IFS estimated the long-run cost of the expansion of free school meals at about £1billion.
But it said the short-run cost might only be £250million (plus around £50million in extra funding for devolved governments).
The think tank agreed the long-run impact would see around 100,000 children lifted out of poverty, but questioned the length of time it would take for this to be achieved.
Christine Farquharson, associate director at the IFS, said: 'Offering free school meals to all children whose families receive Universal Credit will, in the long term, mean free lunches for about 1.7 million additional children.
'But transitional protections introduced in 2018 have substantially increased the number of children receiving free school meals today - so in the short run, today's announcement will both cost considerably less and benefit considerably fewer pupils.
'This also means that today's announcement will not see anything like 100,000 children lifted out of poverty next year.
'Still, the Government estimates that around 500,000 children will benefit next year from today's policy, to the tune of about £500 per child.
'This is a group who are on low, though not the very lowest, incomes - so compared to making free school meals universal, the policy announced today will be both cheaper and more targeted towards poorer families.
'There is some evidence too that school meals can have benefits for children's health and attainment.
'But if the Government's main interest is to reduce child poverty, there are other measures - such as lifting the two-child limit - that would have a lower cost per child lifted out of poverty.'
Currently, households in England on Universal Credit must earn below £7,400 a year (after tax and not including benefits) to qualify for free school meals.
But the Government has announced that every pupil whose household is on Universal Credit will have a new entitlement to free school lunches from the start of the 2026/27 academic year.
Campaigners and education leaders had been calling for free school meals to be extended to all children whose families are on Universal Credit to ease pressures on young people living in poverty.
Nearly 2.1 million pupils – almost one in four of all pupils (24.6 per cent) – in England were eligible for free school meals in January 2024.
Sir Keir said: 'Feeding more children every day, for free, is one of the biggest interventions we can make to put more money in parents' pockets, tackle the stain of poverty, and set children up to learn.
'This expansion is a truly historic moment for our country, helping families who need it most and delivering our Plan for Change to give every child, no matter their background, the same chance to succeed.'
Ms Phillipson said: 'It is the moral mission of this Government to tackle the stain of child poverty, and today this Government takes a giant step towards ending it with targeted support that puts money back in parents' pockets.'
The Government's child poverty taskforce, which is considering the future of the two-child benefit cap, is due to publish its 10-year strategy later this year.

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