Recession pushes action on child poverty up the agenda

Commenting on new research published today by the Joseph Rowntree Foundation and the Institute for Fiscal Studies on the impact of the recession on child poverty, the Chief Executive of Child Poverty Action Group, Kate Green, said:

“The report shows that the need to act on child poverty as we enter recession is more compelling than ever. Britain simply cannot afford the human and economic costs of child poverty levels much higher than our European competitors.

“Not only can the 2010 target to halve child poverty still be met, but the economic case for action grows by the day. Investing in low income families is one of the most effective forms of fiscal stimulus. It can be done quickly through tax credits and benefits, and it supports immediate spending in the grass roots of the economy.

“A fiscal stimulus package for poor families is one of Obama’s first actions in office and the Chancellor must protect British families and support the economy in the same way. A new package in the Budget for struggling families will both keep the child poverty promise and boost the economy.”

Notes for editors

• President Obama’s fiscal stimulus package increases spending on child tax credit and other support for poor families. His economic adviser, Jason Furman, has argued: “Putting money in the hands of the poor can help reduce the severity of a recession. And reducing the severity of the recession is the most important step we can take to mitigate any increase in poverty” (‘Fiscal Stimulus and Poverty’, Stanford University, 2008).
• A report on ‘The four pieces of effective fiscal stimulus’ (Jan 2008) by the US Centre on Budget and Policy Priorities called for fiscal stimulus through unemployment benefits, tax rebates and other anti-poverty measures.
• The Centre for Business Taxation, run by Oxford University economists argues that fiscal stimulus should be channelled through low-income families: “A significant part of the package should be used to boost the child tax credit and working tax credit.” (‘A fiscal stimulus package for the UK?’ Nov 08).
• 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 150 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