Budget 2000: Winning the war against child poverty?

Press reports had suggested that the Chancellor would be stepping up the 'war on child poverty' in last month's Budget ('Budget to focus on child poverty' – The Guardian 17 February). Expectations were therefore high, but did the Chancellor deliver?

In the event, the press headlines focused on the boost in spending for health and education. Although the Chancellor re-stated the commitment to end child poverty in his Budget speech, he did not mention it as a key aim in his televised address later that evening. Commentators would be forgiven for thinking that the priorities had shifted.

Budgets are, of course, carefully staged political events designed to make good newspaper headlines. Journalists rush to meet copy deadlines, which is why the detail (unless deliberately 'spun' by the Treasury) can be overlooked. The small print is found in the full Budget Report (still referred to as the 'red book', although under New Labour it has acquired a glossy white cover). The Treasury claims that the measures in the Budget will lift another 400,000 children out of poverty by the end of this Parliament (a total of 1.2 million children, up from the previous estimate of 800,000). But how will this be achieved?

The 'red book' reveals that the measures announced in the Budget will mean up to an additional £670 million a year in financial support for children, rising to nearly £1.5 billion a year in 2001/02. By the end of this Parliament, Treasury figures show that financial support for families with children will amount to an additional £7 billion a year.

CPAG was disappointed that the Chancellor did not announce a significant increase in child benefit, although from April 2001 child benefit will rise in real terms by 50p for the eldest child and 35p for other children. The children's tax credit (which replaces the married couple's and additional personal allowance from April 2001) will also be increased in real terms by 50p a week. The most significant measure is an increase in means-tested benefits for children by £4.35 a week for each child from October 2000 (from June 2000 for working families' and disabled person's tax credits).

The social fund maternity grant (renamed the Sure Start maternity grant) will be increased by £100 from this autumn to £300. Many commentators were confused about other changes relating to maternity and the birth of a child, not least because of press reports that the Chancellor would announce a new 'baby premium' for parents receiving benefit. No new premium was announced, but from May 2001 parents receiving working families' and disabled person's tax credits will be able to make a new claim as soon as a child is born. Because under current rules tax credits are assessed at six-monthly intervals, there can be a delay of up to six months before an additional credit for the child can be paid. The change in rules also means that tax credits can be adjusted sooner to take account of any loss of earnings due to the birth of the baby.

The measures in the Budget are welcome, although there is a marked shift towards more targeting of support through means-tested benefits. For the longer term, the Government plans to simplify support for children through an integrated child credit, due no sooner than 2003 (the Treasury has indicated that this may be administered by the Inland Revenue). Although this did not make the headlines, it could have ripple effects throughout the whole of the means-tested benefit system. Watch this space. A more detailed analysis of the Budget and the impact on families with children will appear in the June edition of Poverty journal.

Free School Meals campaign update

Visiting Fifth Avenue Primary School in Hull proved to be an eventful day for CPAG Campaigns Officer, Susan Brighouse. Trying to give an interview to the BBC Radio Humberside presenter while eating a school meal with the children and shouting to make herself heard above the children's chatter proved impossible. So she had to retreat to the relative peace of the catering manager's office.

Susan started her day by receiving a box full of pledges collected by Hull City Council's Welfare Rights and Social Services Department. Hull Welfare Rights Officer, Rose Lister, arranged the visit to the school to join the children for a school meal, and meet with the head teacher and staff. Over half of the school's children are entitled to free school meals and most of them choose the nutritious school meal as opposed to packed lunches. Bradford CPAG continues to draw together information about the take-up in Bradford schools. Some schools will be now be drawing up new plans for school meals provision, and it is important that policies to ensure the take-up of free school meals are part of the process.

Warm homes and kind hearts! - update on progress of the Warm Homes Bill to end fuel poverty by 2015

'We are witnessing a rare occasion when we are almost indulging in an all-party love-in!' commented Conservative MP, Sydney Chapman, during the successful second reading of the Warm Homes Bill on Friday 10 March 2000 in the House of Commons.

The attendance of MPs well exceeded the necessary minimum of a hundred to guarantee the Bill would pass this stage. Hundreds of constituents and community groups, including CPAG members and branch representatives, wrote to and phoned their MPs asking them to vote. And they did with a resounding result of 143 for, 0 against. The debate on the day included many positive statements from representatives of all three main political parties. Government Minister, Chris Mullin MP, said '...the aim of the Bill is both worthwhile and necessary... it would... (ensure) that the most vulnerable households need no longer risk ill health due to a cold home'. The Warm Homes Bill will now undergo further stages in the Commons and the Lords. As Liberal Democrat MP, Tom Brake, noted '...together we can embark on a historic cross party campaign to put an end to the outrage of fuel poverty'.

The organisations represented on the national steering group of the Warm Homes Bill Campaign are the Association for the Conservation of Energy, Child Poverty Action Group, Friends of the Earth, Help the Aged, Local Government Association, National Housing Federation, National Right to Fuel Campaign, NEA, UNISON and the NHS Confederation.

If you would like a copy of the Campaign Broadsheet, and are an individual CPAG member who is interested in lobbying your MP on future action on the Warm Homes Bill, please contact Susan Brighouse, Campaigns Officer.

Paying for Care Handbook
1st edition
Geoff Tait, Pauline Thompson (of Age Concern), David Simmons and Helen Winfield

CPAG's new Paying for Care Handbook is the first comprehensive, fully referenced guide to social security and social services law and practice for adults needing care at home, in supported accommodation, or in residential and nursing care homes.
Send £11.95 (plus £2.95 p&p) to CPAG, 94 White Lion Street, London NI 9PF.

News in brief

Royal connections?
If one day Prince Charles Phillip Arthur George does ascend to the throne, he will be the first British king to share his initials with CPAG. So notes a lighthearted piece in The Guardian.

Poverty in London
The London Research Centre's new report, Getting the Benefit, is a study of social security receipt in London, providing an analysis of previously unavailable data from the late 1990s. The report highlights that over one in three children in London were living in households in receipt of social security benefits - 35 per cent of all children in London, compared with 31 per cent of all children for England. For copies contact Phil Garrood on 020 7787 5618

Human Rights Act
The Human Rights Act comes into force on 2 October 2000. It is already in effect in Scotland and Wales, but only in respect of the devolved powers of the Scottish Parliament and Welsh Assembly. As social security is not an aspect of government that has been devolved, for social security purposes the Human Rights Act will only apply from 2 October 2000.

London Marathon
Thank you to all the people who have sent in sponsor forms for Debbie Taylor who will be running in this year's London Marathon on behalf of CPAG. More details about her success in the next edition of campaign
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Finally...
The new all-in-one CPAG Welfare Benefits Handbook replaces the previous two-volume edition. Its 1376 pages include everything you need to know about welfare benefits advice.