Nevertheless, it remains important that means-tested benefits, including tax credits, should not make all the running in developing a decent system of financial support for families with children. In this respect, it is perhaps worrying that the Chancellor also announced (albeit 'at least') a mere 50p. a week increase in child benefit for the first child, with 30p. for subsequent children, from April 2001. Moreover, it appears that this includes the normal inflation uprating, which is not yet known at the time of writing but which makes the promised increase even more modest.

Child benefit, with its simplicity, its ready portability as circumstances change, its very high take-up and the fact that it does not contribute to the poverty trap, has many advantages over means-tested payments. Recent improvements in its value have been very welcome, but continued vigilance is obviously needed.

Which brings us to the integrated child credit (ICC). From April 2003, the Government proposes to roll up the means-tested children's additions with next April's new children's tax credit to create a combined means-tested credit, payable whether or not parents are in work and regardless of which benefits they receive.

Many issues surround the proposed ICC (see, for example, Jane Millar's article in Poverty 106) – not least the right combined level for child benefit plus ICC and the level of adult income at which the ICC should begin to taper away. CPAG is currently making representations to the Government on these and other matters.

Whatever may be the right level for the ICC, it is apparent both from academic evidence and from the perspective of common sense that existing benefits are far adrift of a decent standard which could lift children clear of poverty and social exclusion. For this reason, progress needs to be maintained now. CPAG is calling for a further £5.00 a week increase in the means-tested children's additions from April 2001, after normal indexation, as well as a £2.00 a week real increase in child benefit.

The emergence of the ICC also provides the opportunity to develop minimum income standards to act as targets for family incomes (see John Veit-Wilson's article in Poverty 105) – as the Government's pledge to end child poverty must surely require.

Poverty 107, Autumn 2000