The controversial UC system was set up as a single payment substitute for benefits including, income Support, income based Jobseekers Allowance, income related Employment and Support Allowance, Housing Benefit, Child Tax Credit and Working Tax Credit.But with Child Benefit value falling to a drastically low level, a shocking new report suggests it could end up being scrapped altogether and absorbed into Universal Credit as well, reports Birmingham Live .New domestic abuse laws in Scotland to criminalise and controlling behaviour If this were to happen, then it most likely UC payments would be altered to include an amount equivalent to what was previously paid out in Child Benefit.The claims come from the Resolution Foundation which found Child Benefit had plunged to a 40 year low.It suggested that successive caps and cash freezes mean the real terms value of the payment had fallen by around 210 a year since 2011/12.The think tank said that the value of Child Benefit for a first child had dropped to its 1999 level, while for a second child, it is lower in real terms than when it was first introduced in 1979.Increasing Child Benefit by 5 a week, at a cost of 2.7 billion, would cut the number of children living in poverty by over 100,000, said the Resolution Foundation.Inverclyde Council slam DWP for attempts to tackle child povertySenior economic analyst Adam Corlett said: “Today, Child Benefit Britain most widespread benefit for families turns 40, but its anniversary feels more like a wake than a celebration.”A decade of caps, freezes and restrictions have meant that the value of Child Benefit has, for some families, fallen to a 40 year low.”If these trends continue, Child Benefit could be abolished in the coming years and subsumed into Universal Credit.”His comments suggest that, far from being scrapped as many campaigners want, the troubled welfare scheme would be extended to have an even wider impact.The think tank also predicted that child poverty is expected to rise over the coming years because of the continuing benefit freeze and other cuts.It said 70 per cent of children living in poverty were in working families. Mr Corlett said: “Typical household income growth ground to a halt in 2017 as a result of high inflation and weak pay growth.”Ongoing benefit cuts also meant that the number of children living in absolute poverty also increased by 200,000 the first time this has happened since 2012.Poverty crisis as number of desperate Scots forced to use food banks doubles”With the bulk of the Government 12 billion of welfare cuts taking place after this period, child poverty is likely to continue rising, and could even hit a record high within the next few years.”The political conversation around austerity may have shifted but the lived experience of it hasn for millions of families. Reducing child poverty needs to return to near the top of the Government priority list.”Data from the Department for Work and Pensions (DWP) has shown that 4.1 million children in the UK were classed as living in a relative low income household after housing costs in the past year, unchanged from the previous 12 months..