Poor children deserve fairer share from PBR

Responding to the Chancellor’s Pre-Budget Report, the Chief Executive of Child Poverty Action Group, Kate Green, said:

“The VAT cut will make low income families’ budgets stretch a little further, as will a larger personal tax allowance. But new announcements for the poorest children will mean just £34.45 extra in 2009 for the oldest child in a family and £27.20 for younger children. This comes from paying existing commitments sooner than expected, so the PBR takes us no nearer to the 2010 target to halve child poverty than we had expected before today. With a fiscal stimulus package of £20 billion, the poorest children deserved a fairer slice of the pie.

"Putting into law the commitment to eradicate child poverty is excellent, but so is putting it into practice. Ten thousand members of the public came to the Keep the Promise rally last month to demand that the Government honours its promise to halve child poverty by 2010. The promise is achievable, yet today's report was a missed opportunity and significant new investment in next year’s Budget is essential.”

On extra investment for Jobcentre Plus, she added:

“With unemployment rising fast, the Government has rightly recognised the vital importance of ensuring Jobcentre Plus has the resources for high quality support services. A quick return to employment is the best protection for a family at risk from recent redundancy. The long term unemployed will benefit too from support that helps them compete for the vacancies on offer now and become better skilled for when the economy recovers and labour demand rises again.”

Notes for editors

• The Chancellor is bringing forward by three months (from April 2009 to Jan 2009) a Child Benefit rise to £20 for the oldest child, £13.20 for younger children, worth a total of £15.60 for the oldest child and £8.45 for younger children. He is bringing forward by a year (from April 2010 to April 2009) a £25 increase in the child element of the child tax credit. Oldest children will therefore benefit during 2009 by £15.60 plus £18.75 (which is ¾ of the £25 per annum CTC increase in April). Younger children in a family will benefit by £8.45 pulus £18.75. These amounts do not include tax credit and benefit increases either previously announced or expected as part of the annual uprating.
• CPAG is the leading charity campaigning for the abolition of child poverty in the UK and for a better deal for low-income families and children.
• CPAG is one of over 130 member organisations of the Campaign to End Child Poverty, campaigning for public and political commitment to ensure the goals of halving child poverty by 2010 and ending child poverty by 2020 are met.

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