THERE are more than a million children of key workers living in poverty in Britain, a shocking new report reveals.

The research, conducted for the TUC by Landman Economics, found that, in some regions, more than a quarter of young people in essential-worker households are experiencing hardship.

Key worker families in the north-east of England have the highest rate of child poverty, 29 per cent, just ahead of London’s 27 per cent, while a quarter of such families in the West Midlands and Yorkshire and the Humber regions are affected. 

The TUC said that the main reasons for family poverty are low pay and insecure hours, factors that often coincide in essential occupations such as care work, delivery driving or supermarkets.

High housing costs further reduce key worker family budgets for essentials including groceries and utility bills, the union confederation pointed out, warning that universal credit does not pay enough to keep most people afloat. 

Chancellor Rishi Sunak’s decision to withdraw an £20 increase in the benefit from September, after it was introduced to support the poorest families during the Covid-19 pandemic, is an example of how current government policy is exacerbating the problem, the TUC warned.

Another is ministers capping pay rises for key workers such as NHS staff, who look set to be granted a paltry below-inflation pay “rise” of 1 per cent despite working flat out during the crisis. 

TUC general secretary Frances O’Grady stressed that these policies would “put the brakes” on the nation’s economic recovery by curbing household spending and restraining business activity.

She said: “Prime Minister [Boris Johnson] has promised to ‘build back fairer.’ He should start with our key workers.

“They put themselves in harm’s way to keep the country going through the pandemic.

“This isn’t just about doing right thing by key workers. If we put more money in the pockets of working families, their spending will help our businesses and high streets recover — it’s the fuel in the tank that our economy needs.”

The union confederation called on ministers to guarantee decent living standards for all essential-worker families by immediately raising the national minimum wage to £10 an hour, giving all public service staff a decent pay rise and cancelling the universal credit cut.

Funding the public sector so that all outsourced workers are paid at least the real living wage and receive parity with directly employed staff is also essential, the TUC said.

Reacting to the research, shadow work and pensions secretary Jonathan Reynolds said it was “shameful that the very workers who got us through this crisis are in the firing line when it comes to poor pay and cuts to universal credit.”

Labour would replace the benefit and introduce a living wage of £10 an hour for all workers, the Stalybridge and Hyde MP confirmed. 

A government spokesperson said that ministers are “committed to making sure every child gets the best start in life and this is central to our efforts to level up opportunity across the country.

“Children in households where every adult is working are around five times less likely to be in poverty than households where nobody works.

“That is why our multibillion-pound Plan for Jobs is vital, as it helps people improve their skills and move forward.”

The research for the TUC was conducted using data from the Labour Force and Family Resource Surveys for 2019-20. All figures are based on household income after housing costs have been deducted.