A quarter of a million children live in households where no one has ever worked, the highest level since 2013

A quarter of a million children in the United Kingdom live in households where no one has ever worked, marking the highest level since 2013, according to official statistics released by the Office for National Statistics (ONS). This figure, which reached 252,000 in the second quarter of 2024, reflects a rise of 30,000 compared to the beginning of the year and an increase of 84,000 since the same period last year. The data indicates that 1.9 per cent of UK children, nearly one in 50, are in such circumstances. The increase follows a policy change implemented by the current government, which removed the two-child benefit cap in April 2024. This decision aimed to ease financial pressures on families considering additional children while on benefits. The policy was introduced in November 2023, with the government stating it would allow all families to receive the child element of Universal Credit regardless of their family size. However, the ONS figures suggest that the removal of the cap has contributed to a rise in the number of children living in households without any prior employment history. According to the ONS, the number of households where no one is currently working stood at 3.16 million in the second quarter of 2024, a decrease of 8,000 from the start of the year but an increase of 147,000 compared to the same period last year. This accounts for 14.4 per cent of all households, or roughly one in seven. Additionally, the number of households where no one has ever worked increased to 347,000, representing 1.6 per cent of all households, an increase of 55,000 from the previous year. These statistics highlight a concerning trend regarding the prevalence of families where the concept of working for a living has never been part of the household dynamic. Helen Whately, the Conservative shadow work and pensions secretary, criticized the situation, stating that under the current government, thousands more children are growing up in homes where no one works. She described the figures as the worst in over a decade, emphasizing that these children are being raised in environments reliant on benefits, with taxpayers ultimately bearing the cost. The economic landscape is further complicated by rising unemployment rates, which are projected to exceed 5 per cent later this year. This comes amid ongoing challenges related to youth joblessness, with nearly one million individuals aged 16 to 24 classified as not in education, employment, or training (NEETs). Recent ONS data also revealed that in 2024, 53.3 per cent of the population lives in households receiving more in benefits, including welfare payments, the state pension, and NHS services, than they pay in taxes. This affects 35.8 million people, a record high outside of the pandemic era. The increasing dependency on benefits is a long-term trend, with the proportion of the population relying on such support rising from approximately 40 per cent in the 1980s to around 50 per cent during the 2009 financial crisis. Although this percentage has remained largely stable since then, it surged to 55 per cent during the peak of the pandemic in 2020/21 and has only slightly decreased since, remaining significantly above pre-pandemic levels. Recent official jobs figures indicate that the UK is experiencing a 'jobs drought,' with the number of job vacancies reaching a 12-year high. According to the ONS, there were 707,000 job openings in the three months ending July 2024, the lowest level excluding the pandemic since November 2014. Many businesses have paused hiring due to increased labor costs and other operational expenses, factors attributed to policies such as the government’s £25 billion reduction in employer national insurance contributions, along with substantial increases in the minimum wage and soaring energy prices. Companies are also concerned about the implications of new workers’ rights regulations recently introduced.