Real progress on child poverty but “much, much more to do”
30.03.05

Data from first year of child tax credit shows “policy can work”, but further increases are needed to meet child poverty targets

Official Government figures published today demonstrate the shocking extent of child poverty in Scotland. 260,000 children still lived in poverty in 2003/04; that is 1 in 4 children. According to John Dickie, Head of the Child Poverty Action Group in Scotland 'Poverty ruins children’s lives and life chances; tackling it is morally imperative and economically essential'.

Mr Dickie continued:

'That is why we have welcomed Government commitment and resources devoted to tackling child poverty. The trends since 1999, with the proportion of children experiencing poverty down from 1 in 3 to 1 in 4, show that increased financial support through benefits and tax credits has brought about very real improvements in the living standards of poorer children.'

However, according to the Group, more political effort and greater financial resources devoted to children are needed to meet Westminster and Holyrood targets to eradicate child poverty by 2020.

'By uncovering the extent of child poverty in Scotland and across the UK, these figures are a powerful case for further action. The figures are timely, with a general election campaign already underway. CPAG challenges all political parties to lay out clear targets and proposals for how they would set about eradicating child poverty. CPAG’s ten point manifesto lays out the action they need to take.'

For further information contact:
John Dickie, Head of Child Poverty Action Group in Scotland,
Mobile 0779 534 0618, Office 0141 552 3656.

Notes:

• CPAG Policy Briefing
  Key findings from the 2003/04 Households Below Average Income Series (1264 KB Word file)

1.Figures from Households Below Average Incomes series, full results can be downloaded from www.scotland.gov.uk/Publications/Recent and www.dwp.gov.uk.

According to the figures 3.5 million children in Great Britain, 260,000 children in Scotland, live in poverty; that is they live in households with less than 60% of the median household income after housing costs. This is one of the primary official methods (the other relying on being before housing costs) used to measure the number of children experiencing poverty and amounts to having an income on or below only £182 a week for a lone parent with two children aged 5 and 11 or £262 for a couple with two children also aged 5 and 11

2.The published figures cover the period April 2003 – March 2004, this was the first year of the operation of the Child Tax Credit and the Working Tax Credit. Additional spending on the Child Tax Credit, announced in December 2003 and implemented in April 2004 is therefore not captured in these figures.

3.In March 1999 Tony Blair promised to eradicate child poverty ‘within a generation’, this has been defined as by 2020, with ‘milestones’ (underwritten by Department for Work and Pensions and Treasury Public Service Agreements) towards this of reducing child income poverty by a quarter between 1998/99 and 2004/05, by a half by 2010/11.

4.A related analysis of the same data and analysing patterns of low income and income inequality has also been published by the Institute for Fiscal Studies, Poverty and Inequality 2005 can be found at www.ifs.org.uk

5.To show what is needed to make further progress in eradicating child poverty, CPAG has recently published a manifesto, www.ifs.org.uk ">Ten steps to a society free of child poverty

CPAG’s ten steps to a society free of child poverty are:

• All political parties to commit to eradicate child poverty.
• Poverty proof policies – make each consistent with eradicating child poverty.
• Uprate the combined value of child tax credit and child benefit at least in line with the fastest growing of prices or earnings. The element of this that is child benefit ought to be maximised.
• Increase the adult payments within income support in line with those for children.
• Reform the administration of tax credits and benefits – ensure they get the right amount, to the right people at the right time.
• Ensure all children have full access to the requirements – meals, uniforms and activities – of their education.
• Provide benefit entitlements to all UK residents equally, irrespective of immigration status.
• Work towards better jobs, not just more jobs.
• Introduce free at the point of delivery, good quality universal childcare.
• Reduce the disproportionate burden of taxation on poorer families.

Read CPAG's manifesto to eradicate child poverty

Download a copy of the manifesto (180 KB pdf file)

Download a leaflet summary of CPAG's manifesto (471 KB pdf file)