Child poverty
The Government wants all children to have the best possible start in life, both for the sake of a happy childhood and to enable them to achieve their full potential in adult life. It has an ambitious goal to eradicate child poverty by 2020. Towards achieving this goal, the 2004 Spending Review established a new Public Service Agreement (PSA) target, shared by the Department for Work and Pensions and HM Treasury, to “halve the number of children in relative low-income households between 1998-99 and 2010-11, on the way to eradicating child poverty by 2020.”
Good progress has been made in arresting and reversing the long-term trend of rising child poverty. Between 1998-99 and 2002-03 (the latest data available) the number of children in relative low-income households fell:
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from 3.1 million to 2.6 million on a before housing costs (BHC) basis; and
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from 4.2 million to 3.6 million on an after housing costs (AHC) basis.
Progress against a range of poverty and social exclusion indicators linked to child poverty, including low income, worklessness, health, education and housing, can be found in the Government’s sixth annual Opportunity for all report.
Child poverty is a complex problem requiring a multi-faceted approach. The Government’s strategy involves:
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helping to ensure decent family incomes, with work for those who can and support for those who cannot;
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support for parents, so that they in turn can provide support for their children;
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delivering high quality public services in all neighbourhoods, with targeted support for those with additional needs; and
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harnessing the power and expertise of the voluntary, faith and community sectors, promoting innovation and good practice.
The Child Poverty Review , published alongside the 2004 Spending Review, set out the key next steps across a range of public services that contribute to improving poor children’s life chances, thus breaking cycles of deprivation. The review included key measures to reduce child poverty, in particular through continued efforts to help parents who can work into work, providing financial support to families, tackling material deprivation and improving poor children’s life chances.
The Child and Working Tax Credits, launched in April 2003, are central to the Government’s efforts to tackle poverty and provide opportunity. The Child Tax Credit - an integrated system of child support - brings together the various strands of income-related support for families with children, creating a portable system of support spanning both welfare and work, paid to the main carer. Over 20 million people, including 10.5 million children are already benefiting from the new tax credits. In April 2004, the Government increased the child element of the Child Tax Credit by £180 to £1,625 a year, equivalent to a weekly increase of £3.50, benefiting 7.2 million children in 3.7 million families.
More information on tax credits (Inland revenue website)