Budget freeze on child poverty progress

22.06.10

Commenting in response to today’s Emergency Budget, Child Poverty Action Group’s Head of Policy, Rights and Advocacy, Imran Hussain, said:

“This is a disappointing budget for child poverty and increases the risk of the government failing to meet its 2020 goal of ending child poverty.

“There are nearly 4 million children living in poverty. A budget that fails to bring that number down is, at best, a do-nothing budget not a progressive budget. The increase in VAT is a regressive measure which will impact hardest on poor families.

“Child Benefit has proven to be one of the most effective and popular ways of cutting child poverty in recent years. We are pleased by the Chancellor’s commitment to it as a universal benefit, but let’s be absolutely clear, freezing it for three years won’t be a pain shared equally by all families. It will hit hardest the families who need it the most.

“We do recognise some important targeting to the poorest families with the increase in the child element of the Child Tax Credit, but this seems largely to be neutralising the impact of other measures rather than making actual progress on child poverty.

“Preventing the costly and damaging effects of child poverty on society and the economy is the Government’s best deficit reduction policy. Respected research from the Joseph Rowntree Foundation estimates that £17 billion every year could be saved from public spending if child poverty is eradicated.”

Notes for editors

• The Joseph Rowntree Foundation estimates a £25 billion cost to the economy, including a £17 billion cost to government from the current high levels of child poverty.
• Child Poverty Action Group’s manifesto, published in March 2009, can be found at: www.cpag.org.uk/manifesto
• For up-to-date background facts and stats on UK poverty, visit: www.cpag.org.uk/povertyfacts/
• 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