Ending child poverty must be centrepiece of PBR, says charity
17.11.05

Gordon Brown must make ending child poverty the centrepiece of his Pre-Budget Report on 5 December, a leading charity said today.

In a submission to the Treasury the Child Poverty Action Group (CPAG) will call for the safety net of the welfare state to be raised, more measures to make work pay and the administration of tax credits to be improved.

Kate Green, Chief Executive of CPAG, said:

“Gordon Brown has rightly made ending child poverty one of his driving goals and we welcome the good progress that has been made so far. But with the clock ticking on Labour’s pledge to halve child poverty by 2010, the Chancellor must make child poverty the centrepiece of his Pre-Budget Report.

“Child poverty cannot be eradicated without significantly raising the safety net of the welfare state, supporting more people into employment, ensuring that work pays and making further improvements to the administration of tax credits.

“Tax credits are key to tackling child poverty and CPAG supports them in achieving this aim, but to do so they must be made to work better. And while child benefit was significantly raised in 1999 for the first child, we urge the Chancellor to look at this again and, in particular, consider raising the lower rate for subsequent children.”

CPAG also highlighted figures showing the large gap between benefit levels and the ‘poverty line’ (measured as below 60 per cent of median income after housing costs). For instance, for a couple both aged 30 with two children the ‘poverty gap’ is around £92 per week.

Since 1998/99, 600,000 children have been lifted out of poverty, but 3.5 million or 28 per cent still live in poverty. The Government is committed to halving child poverty by 2010 and ending it by 2020. Next Spring, figures will be published showing whether or not the interim target of reducing child poverty by a quarter from 1998/99 to 2004/05 has been met.

Notes to Editors:
CPAG is writing to the Treasury in conjunction with CPAG Scotland, Children in Wales and the End Child Poverty coalition.

• Pre-budget review submission: The right to a decent childhood (329 KB Word file)
• Pre-budget review submission: The right to a decent childhood (168 KB PDF file)
• Pre-budget report 2005 media briefing (211 KB PDF file)

For further information please contact:
Alex Belardinelli
CPAG Press Officer
Tel. 020 7812 5216 or 07816 909302
abelardinelli@cpag.org.uk