Pre-budget report must recognise limits of employment strategy for ending child poverty

To get the government back on track for halving child poverty by 2010, the Chancellor’s Pre-Budget report this Wednesday must take account of families in in-work poverty and those not able to work.

This is backed by evidence in the New Policy Institute’s 9th annual report ‘Monitoring Poverty and Social Exclusion 2006’, published today, which has found half of children in poverty are in families doing paid work.

CPAG’s submission to the Treasury ahead of the Pre-Budget Report called for the Chancellor to:

• Recognise that employment policies alone cannot end child poverty
• Increase child benefit for younger children to the eldest child rate
• Prioritise the needs of disabled children who are more likely to be in poverty

Chief Executive of Child Poverty Action Group, Kate Green, said:

“Work can help many families out of poverty, but it’s not always the answer. Many jobs pay too little and for some families, like parents caring for disabled children, work may not be an option. The Harker report made it very clear that more support through tax credits and benefits is needed too.

If the Chancellor increased child benefit levels, ensuring that younger children get the same rate as the eldest child, it would lift at least 250,000 children out of poverty. This would be far more reliable than tax credits and would reach parents who may be unable to work, such as those caring for a disabled child.

The Chancellor must ensure tax credits are backed up by a strategy to end the UK’s dependency on a large low pay sector of the economy. No matter how hard families work in these jobs, they will never be able to lift themselves above the poverty line unless they are paid fairly.”

Notes to Editors

CPAG’s submission to the Treasury ahead of the Pre-Budget report can be found on our website:
www.cpag.org.uk/info/briefings_policy/CPAG_pre-budget_review_ltr.doc

For further information please contact:
Tim Nichols
CPAG Press Officer
Tel. 020 7812 5216 or 07816 909302
press@cpag.org.uk