In brief
Integrated child credit

At the time of writing, we only have the opinion polls to go on as regards the identity of the next government. If, however, the polls are right and Labour is returned, then we can expect work to be stepped up on the proposed integrated child credit (ICC).

The ICC is intended to roll up the children’s additions to means-tested benefits with the new children’s tax credit, to create a combined means-tested credit payable regardless of whether or not parents are in work or of which benefits they receive (see Poverty 106 and 107). CPAG sees the ICC as a potential means of channelling further resources towards low-income families with children, but has also warned of the possible hazards - not least the danger that the new means-tested payment might come to be treated as an alternative to child benefit, rather than building upon it as the Chancellor has promised.

Now the House of Commons Social Security Committee has entered the debate, with the publication of Integrated Child Credit (HC 72, March 2001). CPAG gave detailed oral and written evidence to the Committee’s inquiry (both of which are reproduced in the document) and we are pleased to see that the report echoes many of our observations and concerns, notably:

• The opportunity presented by the ICC, concerning which the Committee comments: ‘We believe that the introduction of integrated child credit provides an opportunity for a long overdue review of the level and structure of financial support for children in Britain which should not be missed.’
• The continuing importance of child benefit: ‘We value the role of universal child benefit and believe it should continue to play a substantial role in supporting the children of this country.’
• The need to move towards credible minimum income standards to inform the setting of realistic benefit levels: ‘We recommend that the Government should establish a specific budget to fund a variety of research by different social scientists into the levels of income which are sufficient to keep families with children out of poverty… We also recommend that the Government convenes an ongoing working party involving policy makers, academics and other interested parties to assist it to devise publicly acceptable measures of the levels of income needed to avoid poverty.’
• The need to avoid complex and problematic interactions with the child support system: ‘We recommend that child support payments are ignored for ICC purposes.’
• The need to get the administration right: ‘We invite the Government to give an unequivocal undertaking that ICC will not be implemented unless and until the administrative framework and IT systems to support it are fully operational.’

CPAG would not necessarily endorse every detail of the Committee’s report, but it is a thorough and valuable contribution to the debate and to the planning process.

Geoff Fimister, CPAG

Poverty 109, Summer 2001