Brickonomics

Larger families are much more likely to live in poverty, according to this research from the Department for Work and Pensions: “Families with four or more children account for less than 5 per cent of all families, but more than 20 per cent of poor children”. The Child Poverty Action Group points out that solution would be to remove the child benefit taper, which currently means that “child benefit is worth £17.45 per week for the first child, but just £11.70 per week for second and subsequent children”. Further work by the Joseph Rowntree Foundation estimates that equalising CB rates at an overall higher level at a cost of around £3.4bn would bring the child poverty rate for large families down to the level for small ones.

As well as reducing income poverty, such a change should also help with the housing problems faced by many larger families. According to these tables, households with five or more members are eight times more likely to be overcrowded than the national average. The increase in their income with equalised child benefit may be modest, but could be enough to enable some to afford more suitable accommodation. It could also reduce their reliance on the means-tested Housing Benefit and reduce its work disincentive effect.