An end in sight? Tackling child poverty in the UK
Background briefing and summary

Child poverty in the UK

The latest published figures (for 1998/99) show that 4.5 million children in the UK were living in poverty.

The UK has one of the highest rates of child poverty among industrialised countries. Child poverty increased more than in almost any country between the early 1980s and the mid 1990s.

18 per cent of children (around 2.4 million) suffer from multiple deprivation, even after the sacrifices made by their parents. These children go without two or more necessities such as ‘a warm waterproof coat’ or a ‘properly fitting pair of shoes’.

1 in 6 families fall into poverty as the result of the birth of a child.

Babies born to poorer families are more likely to be born prematurely and to be of low birth weight. The implications include a greater likelihood of impaired development and of certain chronic diseases later in life.

Children in poorer families are more likely to experience illness with a greater risk of respiratory infection, gastro-enteritis, dental caries and tuberculosis.

Children whose parents do unskilled work are five times more likely to die from accidents than children whose parents have professional occupations.

Children living in temporary accommodation or poor quality social housing are at greater risk of fire.

Children from poorer backgrounds are less likely to do well at school, leaving school with fewer or no qualifications and less likely to stay on.

Poverty in childhood can leave a long-term legacy. Children raised in poverty are, as adults, more likely to be unemployed, in low paid employment, are more likely to live in social housing, get in trouble with the police and are at greater risk of alcohol and drug abuse.

An end in sight?
Summary of contents

Foreword

Poverty was not an issue at the last election, reflecting the growing political, social and economic exclusion of those in poverty.

The cumulative effect of Labour Budgets has been progressive.

The Government should show the same unequivocal leadership in the crusade against domestic poverty as it is in providing in the global arena in relation to poverty in developing countries.

‘Looking over its shoulder at Middle Britain’, the Government has been remarkably quiet about some of the measure it has introduced. The desire of politicians to woo ‘Middle Britain’ must not result once again in the marginalisation of poverty as an election issue.

Ruth Lister, Professor of Social policy at Loughborough University

Ch.1 Child poverty under Labour

Although child poverty will have fallen by the time of the election, the fall could have started earlier and proceeded faster – given the political, economic and demographic conditions since 1997.

The legacy the current Government inherited should not be forgotten. There is no indication that the Conservatives have acknowledged the damage that their policies caused for children, nor that in a future term in office they will behave differently.

In 1997/98 4.4 million children were living in households below 50 per cent of average income after housing costs. By 1998/99 (the latest published figures) the number had increased to 4.5 million an increase of 100,000.

It is possible to model the effect of Government policies on the numbers of children living in poverty. Changes in the tax and benefit system should lift 1.2 million children out of poverty by April 2001. An increase in the number of parents in employment since 1997 may lift an additional 300,000 children out of poverty.

Some poor children have become worse off. They tend to be in families not on income support who lose mortgage interest tax relief, or in households in receipt of income support with children over 11 who lose one-parent benefits.

Had the £2.44 billion foregone in the cut in the basic rate of income tax (from April 200) been used to increase children’s income support rates, child poverty could have been reduced by up to a further 695,000 children.
Note: Jonathan Bradshaw’s article uses analysis based on the POLIMOD simulations conducted by David Piachaud and Holly Sutherland. POLIMOD uses a measure of poverty based on household incomes before housing costs. CPAG (and the Government) have used a measure based on incomes after housing costs. Against both measures, the number of children lifted out of poverty are roughly the same.

Jonathan Bradshaw, Professor of Social policy at the University of York

Ch.2 Children’s benefits & credits

The proposed integrated child credit (ICC) (planned for 2003) has considerable potential to contribute to the objective of ending child poverty. However, there are many structural and administrative complexities to overcome.

Integration and simplification of financial support for children will not alone achieve the goal of ending income poverty. The central objective should be to set the ICC at a level which guarantees that all children are lifted out of income poverty.

A minimum income standard should be used as a target for the level of the ICC.

The future of child benefit remains unclear - the integrated child credit should not be a vehicle to undermine it (e.g., by a failure to maintain child benefit’s value or by introducing some form of means test).

The channelling of money to children should not be used as an excuse for harsher labour market conditions (sanctions) in respect of parents.

Martin Barnes, Director of CPAG; Geoff Fimister, freelance writer and consultant

Ch.3 Employment and poverty

The Government believes that joblessness is the most important cause of poverty, and helping people into employment is at the centre of its anti-poverty strategy.

Labour market trends were well established by the time of the 1997 election.

The Government has targeted ‘joblessness’ rather than unemployment. Policies have been designed not to create shops, but to influence who gets them and how well off people will be in work.

There are two key themes in the Government’s active labour market policy: individualisation (tailoring) of support to help people into work and the use of compulsion:

The personal adviser service (offered by the New Deal programmes, ONE, employment zones and the Job transition Service marks something genuinely new in British labour market policy. The planned merger of the Employment Service and the Benefits Agency to create a new ‘Working Age Agency’ is a major extension of this approach.

The Government has introduced the toughest benefit penalties ever faced by unemployed people. The extension of compulsion could distort and undermine the effectiveness of employment services.

The integrated approach to employment services is welcomed, but more emphasis needs to be given to the needs of particularly disadvantaged groups such as disabled or older workers.

The national minimum wage has been a success, but the main problem is that it is too low. The trouble free introduction of the minimum wage suggests that it could be raised to between £4.50 and £5.00 an hour.

Richard Excell, TUC Senior Policy Officer

Ch.4 Education

There are a raft of new policies and initiatives designed to tackle the problems of disadvantaged areas, schools and pupils. What was once marginal has become of central concern.

Many of the programmes and changes are in their early stages. The jury is still out as regards progress so far in tackling the interaction between poverty/deprivation and education.

The legacy of the tight financial regime which followed the 1997 election has yet to be fully overcome, as is the continuation of a large part of the policies of the previous government.

A further willingness to prioritise the needs of disadvantaged areas, schools and pupils must be looked for in any second term.

The is a need to consolidate the rash of initiatiives aiming to tackle educational disadvantage.

George Smith and Teresa Smith researchers in the Department of Social Policy and Social Work, University of Oxford

Ch.5 Health

While many indicators of the population’s health had been improving, inequalities in health widened significantly during the previous two decades.

A starkly polarised society is the context into which British children are currently being born and raised. Government policies to can so far, at best, only have helped to slow down that process. The underlying trend is still one of widening polarisation in health.

There is a critical relationship between health standards and financial poverty.

There is some evidence that the difference in child mortality between the ‘worst’ and the ‘best’ health areas has started to narrow. Social conditions and inequalities can change and can change quickly - evidence of the rate of change in the past does not support a prudent and pessimistic outlook.

Specific attention needs to be given to the health needs of young people who are looked after by local authorities or who are homeless.

Mary Shaw, an ESRC Research Fellow, School of Geographical Studies, University of Bristol; Daniel Dorling, Professor of Quantitative Human Geography, University of Leeds; David Gordon, Senior Research Fellow, School for Policy Studies, University of Bristol; George Davey Smith, Professor of Clinical Epidemiology, Department of Social Medicine, University of Leeds

Ch.6 Housing

Approximately 20,000 new social rented homes were built in 1999, half the number in 1995.

The number of households accepted as homeless has increased slightly, but the number of homeless households in temporary accommodation has increased significantly, for the first time passing 71,000 households in September 2000.

The number of households in bed and breakfast accommodation has reached record levels. In September 2000, 9,530 households – an increase of 14% in a year.

Social housing was a winner in the Comprehensive Spending Review of July 2000 – expenditure will nearly double up to 2003/04.

Shelter estimates 100,000 new social homes are required every year to meet current and rising housing need. The Government’s programme falls short of this target.

The setting up of the Rough Sleepers Unit was a significant move. The target to reduce the number of people sleeping on the streets by two-thirds within three years is bold. The success of this strategy will depend on the number of hostel and move-on beds and the availability of specialist advice and assistance services, including drug and alcohol counselling.

Housing benefit administration remains in crisis in many local authorities.

Licensing of poor quality accommodation in the private rented sector is a manifesto commitment from the last election which is still outstanding.

Matthew Waters, Shelter, Policy Unit

Ch.7 Neighbourhood renewal

There is a North-South divide, but at district and neighbourhood (ward) level inequalities are even more pronounced, with the poorest wards having average deprivation scores over ten times the most affluent.

Against a Child Poverty Index (mapping the number of families with children ion means-tested benefits) the contrasts are starker, with some wards recording over 75 per cent of families receiving means tested benefits compared with under 7 per cent in better off areas

Local action to combat poverty and deprivation is not a new idea. It is important to learn lessons from past initiatives.

The Social Exclusion Unit has played a key role in Labour’s commitment to neighbourhood renewal.

There has been something of an explosion of other area-based initiatives.

Local targets are important as part of a national strategy. Many people living in the poorest neighbourhoods do not have a history of collaboration with, or trust in, government agencies. It will take time to turn this around.

Social inclusion can be promoted by local action but this must be placed within the wider context of social exclusion and polarisation. Although many poor people do live in deprived neighbourhoods, many do not. Drawing boundaries around chosen neighbourhoods is as much a political as a policy process - ‘postcode politics’.

Local action should not stigmatise local communities and neighbourhoods. Success in achieving ‘problem area’ status can be a double edged sword, with an element of negative labelling.

Pete Alcock, Professor of Social Policy and Head of the Department of Social policy, University of Birmingham

Ch.8 Race

There remains a lack of data about the social and economic circumstances of the black and ethnic minority population.

Many policies to tackle poverty and social exclusion are ‘colour-blind’ with insufficient attention to addressing black and ethnic minority issue.

The Government has demonstrated a populist and prejudiced stance towards immigration.

Asylum seekers are faced with a system which is clearly failing.

The next administration should address the issue of institutional racism in the context of social exclusion

Gary Graig, Professor of Social Justice, University of Hull

Appendix1. New Labour Diary:

Tim Marsh, Policy Officer, UK Public Health Association

 

Further information on this website:

An End in Sight? Tackling child poverty in the UK
An authoritative analysis of the Blair government’s record in tackling child and family poverty from 1997-2001. Distinguished contributors from various fields assess Labour’s progress towards achieving abolition of child poverty within 20 years.

119 pages 1 901698 34 3 February 2001 £9.95   full details   order

 


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