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<p /> <p /> <p>The Government has not made an assessment of the effect of welfare
reforms on levels on child poverty. Given the large number of reforms and variables
involved, the impact of welfare changes cannot be seen in isolation.</p><p>However,
the guiding principles of all of this Government's welfare reforms are to get more
people into work by making work pay.</p><p>A key component of the Welfare Reform is
Universal Credit. Universal Credit is expected to improve work incentives by allowing
individuals to keep more of their income as they move into work, and by introducing
a smoother and more transparent reduction of benefits when they increase their earnings.</p><p>We
estimate this new reform will lift around 300,000 children out of poverty.</p>
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