News

Poverty target 'lacks a vision'

Posted: 24 March 2005 | Subscribe Online


Gordon Brown promised every child "the best possible start in life" as he unveiled his Budget last week. Children's campaigners welcome the proposals but they also question how far they will help the very poor.

Although organisations are confident that the government is "on track" to meeting its target of cutting by a quarter the 4.4 million children in poverty in 2000 to 3.3 million this year, they warn that the Budget's pledges are "helpful", but not enough.

The government wants the number of children in poverty halved from the 2000 level by 2010 and abolished altogether by 2020 - a target that will be missed without more investment to see it through, campaigners say.

Article continues below the advertisement



Brown's Budget pledge to raise payments for children under the child tax credit by 13 per cent over the next three years in line with earnings were widely welcomed, but critics say benefits - particularly child benefit - need a greater boost too.

The chancellor's speech pointed to the rise of child benefit from the 1997 level of £11 to £17 this April, but Kate Green, chief executive of Child Poverty Action Group, says a bigger investment is needed over a longer period.

She says: "The lack of investment in child benefit shows a failure to consider the most excluded families who are very far below the median income, who need more support."

Green highlights the additional needs of families with disabled children who experience extra costs for specialist child care and equipment, and children from ethnic minorities.

Neera Sharma, principal policy officer at Barnardo's, says Brown has "targeted middle England" to the detriment of poorer families.
Under the Budget's proposals, families on the median income of £23,400 a year will be £5 a week better off, but Sharma warns that those on income support will still struggle.

She says: "The level of income support has gone up so little in relative terms, rising by just 50p in April. The rise in child tax credit could end up subsidising parents because their benefit levels are so low."

Sharma also predicts some parents may experience difficulties in finding work that pays enough to "take advantage" of the child tax credit rise. She adds: "Those from ethnic minority communities are at risk of being excluded because they are more likely to live in areas of high unemployment."

In the Budget, Brown pledged to extend the £2,000 incentive to return to work for lone parents in the first year to new areas, but Sharma argues that some parents could end up in low-paid jobs.
Article continues below the advertisement



"Lone parents should have a choice, rather than being forced into poorly paid work because there is no other option," she says.

"There is also the issue about the quality of children's lives as well as tackling poverty. If lone parents feel they can provide better child care themselves, they should get the support they need."

Charity One Parent Families predicts that further child tax credit increases will be "essential" if the government is to achieve its 2010 target.

But the Institute for Fiscal Studies believes the government may not have much "spare" money to devote to further increases. A spokesperson says: "Although the Budget benefits the poorest 3.6 million children, it has to be sustainable as the future is uncertain."

Sharma points to the need for the government to draw up a financial strategy for reducing child poverty. "While the target is clear, there is no detailed vision on how to reach it," she says. "The positive proposals in the Budget could provide the building blocks on how to take this forward."

Brown's Benefits 

  • Extension of the child trust fund from primary to secondary school years.
  • Rise in child element in child tax credit by 13 per cent over three years.
  • 3,500 children's centres  by 2010.
  • 15 hours' free nursery education from 2007.
  • One million new child  care places.
  • VAT refund for local councils on children's centres and children's services.


Spread the word:   bookmark it! diggit! reddit!



Products and Services
  • RSS Feeds
  • Conferences
  • Jobs By Email
  • News
  • Blogss
  • Videos
  • Magazine Subscriptions
  • Podcasts