Britain cannot afford a ‘do nothing’ budget for struggling families

Child Poverty Action Group has published a media pre-briefing for Budget 2009 which includes a new analysis of the economic stimulus impact of investment in low income households and reaching the target to halve child poverty by 2010.

The analysis shows that completing the action needed to halve child poverty with investment of at least £3 billion in benefits and tax credits would also provide a significant economic stimulus. A package that additionally provided extra support for those who have lost work, directed through jobseekers allowance, could have a stimulus impact over £10 billion and equivalent to 227,000 jobs.

The briefing also presents a package of measures detailing how the investment can be fiscally neutral so that there is no further increase in public debt.

The Chief Executive of Child Poverty Action Group, Kate Green, said:

“We cannot afford a ‘do nothing’ budget for struggling families. Family security and economic security are inseparable. If we fail to look after children now, we will be storing up major social and economic problems for the future.

“Despite the recession and the pressure on the public purse, the country still has the resources to keep the promise to end child poverty. Doing so will boost the economy and bring the UK back in step with other G8 countries who have provided much greater targeted stimulus to the poorest.

“Ending child poverty is the right moral action and the right economic action. By acting decisively now, we can avoid the failure to protect family security in the 1980s recession when job loss and the collapse of traditional industry left a legacy of intergenerational poverty that still costs us billions today.”

Notes for editors

• The new analysis found that a targeted stimulus package of £6.8 billion – which would not only provide the investment of at least £3 billion needed to meet the 2010 target of halving child poverty, but would also increase support to those made redundant in the recession through jobseekers allowance – would result in a £10.9 billion stimulus to the economy, equivalent to 227,000 jobs. Increased tax receipts would mean a net cost to the Treasury of £4.4 billion for the targeted stimulus package.
• Download CPAG's Budget 2009 pre-briefing (169 KB PDF file)
  The briefing details the action needed by the Chancellor to meet the 2010 target for halving child poverty while also giving an affordable and targeted stimulus to the economy.
• For up-to-date background facts and stats on UK child poverty and the Government’s targets, visit: http://www.cpag.org.uk/povertyfacts/
• 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 130 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