DEBATE PACK Number CDP-0256, 15 December 2016
Feargal McGuinness Jennifer Brown Child Poverty
Contents
1. Background Child Summary poverty: statistics 2 1.1 Low income This pack has been prepared ahead of the debate on a Child Poverty to take households 2 place in Westminster Hall on 20 December 2016 at 2:30pm. The subject for the Relative and absolute debate has been chosen by Dan Jarvis MP. low income 3 Low income and material deprivation 5 1.2 ‘Life chances’ indicators 6 Children in workless households 6 Educational attainment 7 2. Policy developments since 2010 9 2.1 The Child Poverty Act 2010 9 2.2 The Child Poverty Strategy 2011-14 and consultation on Measuring Child Poverty 10 2.3 Child Poverty Strategy 2014-17 11 2.4 The Welfare Reform and Work Act 2016 and ‘life chances’ 12 2.5 Life chances strategy 13 3. Press Articles 15 The House of Commons Library prepares a briefing in hard copy and/or online for 4. Reports and further most non-legislative debates in the Chamber and Westminster Hall other than reading 17 half-hour debates. Debate Packs are produced quickly after the announcement of 5. Parliamentary parliamentary business. They are intended to provide a summary or overview of Material 19 the issue being debated and identify relevant briefings and useful documents, including press and parliamentary material. More detailed briefing can be prepared for Members on request to the Library.
www.parliament.uk/commons-library | intranet.parliament.uk/commons-library | [email protected] | @commonslibrary 2 Number CDP-0256, 15 December 2016
1. Background Child poverty: statistics
Summary There are various ways of defining poverty and no single definition is universally accepted. In the UK, the headline measures are based on household income although since 2010 Ministers have criticised these as failing to capture the reality of poverty and leading to skewed policy responses (discussed further in section 2). This section provides statistics on the number of children in poverty defined in terms of low household income. It also provides statistics on the ‘life chances’ indicators in the Welfare Reform and Work Act 2016: children in workless households and educational attainment at age 16. More detailed discussion of the statistics is provided in Library briefing paper, Poverty in the UK: statistics.
1.1 Low income households The tables show the number of children in low income households each year since 1994/95. • An individual is in relative low income (or relative poverty) if they are living in a household with income below 60% of median household income. • An individual is in absolute low income (or absolute poverty) if they are living in households with income below 60% of the 2010/11 median, uprated for (RPI) inflation. In simple terms, the relative low income measure offers an indicator of inequality between low- and middle-income households. The absolute low income measure offers an indicator of the extent to which living standards of low-income households are improving over time. However, income will not always reflect the extent to which a family can afford necessities. Therefore a low income threshold may be combined with some assessment of whether households are able to access key goods and services for a measure of low income and material deprivation. The median is the point at which half of households have a lower income, and half have a higher income. Income is measured after taxes and benefits, and is adjusted (‘equivalised’) to take into account differences in household size and composition. Income can be measured before or after housing costs have been deducted (BHC or AHC) and both approaches are commonly used. Poverty levels are generally higher when household incomes are measured AHC, as households at the lower end of the income distribution tend to spend a larger share of their income on housing than higher-income households. Child Poverty 3
Estimates of the number of children in relative and absolute low income and the number in low income and material deprivation are published by the Department for Work and Pensions (DWP) in its annual Households below average income (HBAI) publication. Relative and absolute low income 2.5 million children were in relative low income before housing costs (BHC) in 2014/15, 200,000 more than the previous year. 19% of children were in relative low income BHC. 1 The number of children in absolute low income BHC was 2.3 million, about the same as the previous year. 17% of children were in absolute low income BHC.
% of children in poverty, before housing costs 50% Great Britain (1997/98-2001/02) and UK (2002/03-) 45% 40% 35% Absolute low income 30% 25% 20% Relative low income 15% 10% 5% 0% 97/98 99/00 01/02 03/04 05/06 07/08 09/10 11/12 13/14 Source: DWP, Households below average income, 2014/15 On an after housing costs (AHC) basis, there were 3.9 million children in relative low income, 200,000 more than the previous year. 29% of all children were in relative low income AHC. The number of children in absolute low income AHC fell by 100,000 to 3.7 million, 27% of all children in the UK.
% of children in poverty, before housing costs 50% Great Britain (1997/98-2001/02) and UK (2002/03-) 45% Absolute 40% low income 35% 30% Relative 25% low income 20% 15% 10% 5% 0% 97/98 99/00 01/02 03/04 05/06 07/08 09/10 11/12 13/14 Source: DWP, Households below average income, 2014/15
1 Children are defined here as people aged under 16, or who are aged 16-19, not married or co-habiting and in full-time non-advanced education. 4 Number CDP-0256, 15 December 2016
Children in low income households, before and after housing costs Great Britain (1994/95-2001/02) and United Kingdom (2002/03 to 2014/15) Relative low income Absolute low income BHC AHC BHC AHC Number of children in low income 1994/95 3.2 4.1 5.7 6.5 1995/96 3.0 4.2 5.7 6.5 1996/97 3.4 4.3 5.4 6.1 1997/98 3.4 4.2 5.2 5.9 1998/99 3.3 4.3 5.1 5.7 1999/00 3.3 4.2 4.8 5.4 2000/01 3.0 3.9 4.1 4.9 2001/02 2.9 3.9 3.7 4.4 2002/03 2.9 3.8 3.4 4.1 2003/04 2.8 3.7 3.2 3.9 2004/05 2.7 3.7 3.0 3.8 2005/06 2.8 3.8 3.1 3.9 2006/07 2.9 4.0 3.0 4.0 2007/08 2.9 4.1 2.9 4.0 2008/09 2.9 3.9 2.8 3.9 2009/10 2.6 3.9 2.5 3.8 2010/11 2.3 3.6 2.3 3.6 2011/12 2.3 3.6 2.6 3.8 2012/13 2.3 3.7 2.5 3.9 2013/14 2.3 3.7 2.4 3.8 2014/15 2.5 3.9 2.3 3.7
Percentage of children in low income 1994/95 25% 33% 45% 51% 1995/96 24% 33% 45% 51% 1996/97 27% 34% 42% 48% 1997/98 27% 33% 41% 46% 1998/99 26% 34% 40% 45% 1999/00 26% 33% 37% 42% 2000/01 23% 31% 33% 38% 2001/02 23% 31% 29% 35% 2002/03 22% 29% 26% 32% 2003/04 22% 28% 25% 30% 2004/05 21% 28% 24% 30% 2005/06 22% 30% 24% 30% 2006/07 22% 31% 23% 31% 2007/08 23% 31% 22% 31% 2008/09 22% 30% 21% 30% 2009/10 20% 30% 19% 28% 2010/11 18% 27% 18% 27% 2011/12 18% 27% 19% 28% 2012/13 17% 27% 19% 29% 2013/14 17% 28% 18% 29% 2014/15 19% 29% 17% 27%
Source: DWP, Households below average income, 2014/15 , Tables 4a and 4b Child Poverty 5
Low income and material deprivation Material deprivation indicators look at whether Children in low income and families have access to key goods and services. In material deprivation order to measure this, families with children are United Kingdom, 2004/05 to 2014/15 surveyed as to whether they feel they can afford different items. For example, in 2014/15: for 35% Number Percentage of children in the UK, their parents cannot afford to give them at least one week’s holiday away 2004/05 2.2 17% from home; for 19%, their parents do not have 2005/06 2.1 16% 2006/07 2.0 16% money to decorate their home; 2% cannot afford 2007/08 2.2 17% celebrations on special occasions. If households 2008/09 2.3 18% cannot afford a certain number of these goods 2009/10 2.2 16% and services, then they are counted as materially 2010/11 2.0 15% deprived. DWP publishes a series for the number of children 2010/11 1.7 13% in combined low income and material deprivation. 2011/12 1.7 12% This counts the number of children who are both 2012/13 1.8 13% materially deprived and have a household income 2013/14 1.7 13% below 70% of median income before housing 2014/15 1.7 13% costs. The trend is shown in the chart and table. Source: DWP, Households below average The set of survey questions used to assess material income, 2014/15, Table 4c deprivation changed in 2010/11, so figures before 2010/11 are not comparable with more recent figures.
% of children in low income and material deprivation 25% UK, 2004/05 to 2014/15
20%
15%
10%
New set of material 5% deprivation questions introduced 2010/11
0% 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15
For more information on material deprivation, see section 9 of the Library’s briefing paper, Poverty in the UK: statistics. An article on the Library’s blog, Not poor but in a JAM (15 December 2016) discusses the prevalence of material deprivation for groups in low income compared to those who are not counted as in low income.
6 Number CDP-0256, 15 December 2016
1.2 ‘Life chances’ indicators The Welfare Reform and Work Act 2016 introduced a duty on the Government to report annually on ‘life chances’ indicators: • the number of children living in workless households in England • the number of children living in long-term workless households in England • educational attainment of children in England at the end of Key Stage 4 (GCSE level) • educational attainment of disadvantaged children in England at the same stage. The background to the life chances indicators is discussed further in section 2 of this briefing. Children in workless households The Office for National Statistics publish data on children in workless households across the UK as a whole (although the Welfare Reform and Work Act specifies children in England). At April-June 2016, there were 1.4 million children in the UK living in households where no one was in work, 11.0% of all children (1.1 million children in England, or 10.7% of all children). Figures include children aged under 16 only, living in households that include at least one person aged 16-64.2 The proportion of children in workless households is at its lowest since the current series began in 1996. Research by the Institute for Fiscal Studies (IFS), based on a different source, suggests the current proportion is similar to what it was at the start of the 1980s.3
% of children living in working and workless households UK, 1996-2016, data at April-June 60%
50% All adults in work 40%
30% Some adults in work 20%
No adults 10% in work
0% 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
Source: ONS, Working and workless households in the UK
2 ONS, Working and workless households in the UK: April to June 2016 3 C Belfield et al, Living standards, Poverty and Inequality in the UK: 2016, Institute for Fiscal Studies Report 117, 19 July 2016, p66, Figure 5.6 Child Poverty 7
193,000 children lived in households where no member has ever been in paid work (apart from casual or holiday work) at April-June 2016, 1.6% of children in the UK.
% of children living in workless households, including household where no member has ever worked 25% UK, 1996-2016, data at April-June
20%
15% All workless households
10%
5% Households where no member has ever worked
0% 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
Source: ONS, Working and workless households in the UK However, much recent discussion of children in poverty has focused on children in households where someone is in work, rather than workless households. Information on poverty and employment status can be found in section 5 of the Library’s briefing paper, Poverty in the UK: statistics. Educational attainment The Welfare Reform and Work Act does not bind the Government to a particular definition of educational attainment. However, the Explanatory Notes to the Act identify the Department for Education statistical release GCSE and equivalent attainment by pupil characteristics as the likely data source to be used.4 This release has now been subsumed into the Department’s GCSE and equivalent results in England statistical release. The release currently looks at pupils attaining 5 A*-C grades at GCSE (or equivalent), including English and mathematics, as a performance measure. The measure of disadvantaged children used in the release of 2014/15 data includes “pupils known to be eligible for free school meals (FSM) in any spring, autumn, summer, alternative provision or pupil referral unit census from year 6 to year 11 or are looked after children for at least one day or are adopted from care.” The Act does, however, allow the Secretary of State to use different definitions. • In 2015/16, 52.8% of pupils in England achieved 5 A*-C grades at GCSE (or equivalent) at the end of key stage 4, including English and mathematics, down slightly from 53.8% in 2014/15.
• Among disadvantaged pupils, 36.7% achieved 5 A*-C grades at GCSE (or equivalent), including English and mathematics in 2014/15. This compared to 57.1% of all pupils in state-funded schools in England.
4 Welfare Reform and Work Act, Explanatory Notes, para 85 8 Number CDP-0256, 15 December 2016
• Attainment data for disadvantaged pupils in 2015/16 are expected to be published in January 2017. Changes in data coverage and how qualifications are counted mean there are various breaks in the series in recent years, as shown in the chart. This makes interpreting trends more difficult. In particular, attainment data from 2013/14 onwards are not comparable to previous years, as they only include a pupil's first attempt at a qualification and also reflect changes to how vocational qualifications are counted.
% of pupils achieving 5 GCSEs at A*-C (or equivalent) including English and mathematics, at end of key stage 4 England, 2004/05 to 2015/16 70% Pupils in state- funded schools 60%
50% All pupils
40%
Disadvantaged 30% pupils in state- funded schools 20%
10%
0% 2004/05 2006/07 2008/09 2010/11 2012/13 2014/15
Source: DfE, GCSE and equivalent results
Child Poverty 9
2. Policy developments since 2010
Summary This section summarises developments in the measurement of child poverty since the Child Poverty Act 2010 introduced four targets for child poverty to be met by 2020/21, which would represent “eradication” of child poverty. The targets mainly used income-based measures of poverty, but during the 2010-15 Parliament, Ministers repeatedly signalled their intention to introduce improved poverty measures. The Welfare Reform and Work Act 2016 removed the four targets in the Child Poverty Act and instead introduced a duty on Ministers to report annually on two ‘life chances’ indicators, relating to children in workless households and educational attainment. The Cameron Government announced it would also publish a life chances strategy, covering other non-statutory indicators as well. The strategy would “set out a comprehensive plan to fight disadvantage and extend opportunity, including a wider set of non-statutory measures on the root causes of child poverty such as family breakdown, problem debt, and drug and alcohol addiction.” The life chances strategy was originally expected in spring 2016. It now appears the strategy will not be published but the Government will instead publish a social justice green paper in 2017.
2.1 The Child Poverty Act 2010 The stated purpose of the Child Poverty Act 2010 was to “define success in eradicating child poverty and create a framework to monitor progress at a national and local level.”5 It introduced four challenging and legally binding child poverty targets to be met by 2020/21, based on relative low income; absolute low income; combined low income and material deprivation; and persistent low income. The targets (see the box below), along with most of the other duties and provisions in the Act, were removed by the Welfare Reform and Work Act 2016.6 The Child Poverty Bill was introduced by the Labour Government in the 2008-09 session (and was carried over to the 2009-10 session). Although it received cross-party support, both the Conservatives and Liberal Democrats criticised elements of the Bill. In particular, the Conservatives’ key concern was that the targets in the Bill were “poor proxies for achieving the eradication of child poverty.” The Conservatives said they would “aim to widen the agenda and build up
5 Child Poverty Act 2010, Explanatory Notes, para 6 6 Welfare Reform and Work Act 2016. Sections 4-7 deal with child poverty and life chances. For the background to the Act, see the Library’s briefing paper prepared for Second Reading of the Welfare Reform and Work Bill on 20 July 2015. Information on the Child Poverty Act 2010 can be found in Library briefing paper, Child Poverty Act 2010: A short guide. 10 Number CDP-0256, 15 December 2016
targets, which are more likely to address the underlying causes of poverty.”7 The Child Poverty Act required the Government to publish a Child Poverty Strategy every three years (this duty was also removed by the Welfare Reform and Work Act). The Coalition Government published Strategy documents in 2011 and 2014, discussed further below.
Targets in the Child Poverty Act 2010 The Child Poverty Act 2010 set four targets for child poverty to be met by 2020/21 (which have since been removed by the Welfare Reform and Work Act 2016). The four child poverty targets to be met by 2020/21 were:
• Relative low income – to reduce the proportion of children who live in relative low income (in families with incomes below 60% of the median, before housing costs) to less than 10%. • Combined low income and material deprivation – to reduce the proportion of children who live in material deprivation and have a low income (below 70% of the median, before housing costs) to less than 5%. • Absolute low income – to reduce the proportion of children who live below an income threshold fixed in real terms (60% of median income in 2010/11) to less than 5%. • “Persistent” poverty – to reduce the proportion of children that experience long periods of relative low income; this was set at a specific target of less than 7% following a consultation in 2014.8
Further information on the background to the Child Poverty Act is provided in the Library’s Research Paper on the Child Poverty Bill (prepared for Second Reading of that Bill). Library briefing paper Child Poverty Act 2010: a short guide provides a summary of the Act and party positions during its passage through Parliament.
2.2 The Child Poverty Strategy 2011-14 and consultation on Measuring Child Poverty During the 2010-15 Parliament, Ministers repeatedly signalled their intention to introduce improved poverty measures. The Coalition’s Government Child Poverty Strategy for 2011-14, A New Approach to Child Poverty: Tackling the Causes of Disadvantage and Transforming Families’ Lives, made clear the view that the measures in the Child Poverty Act were insufficient for understanding the root causes of poverty and led to ineffective and expensive policy responses. It set out a broader suite of child poverty indicators which could show progress towards eradicating child poverty by 2020, which included additional indicators related to family’s employment status and child development (among others) alongside the income measures in the Child Poverty Act. A 2012 Government consultation, Measuring Child Poverty: A consultation on better measures of child poverty, went a step further and proposed a new multidimensional measure of child poverty “that would illustrate the reality for children growing up in entrenched
7 HL Deb 15 Jan 2010 c26 8 Department for Education, Setting the 2020 persistent child poverty target: government response, 16 October 2014. Persistent poverty is defined as being in relative low income for three years out of a four year period. Child Poverty 11
poverty in the UK today”. Although the Consultation criticised income- based measures, it acknowledged that income would have to remain a key part of the new measure: Central to any measure of child poverty will be the inclusion of household income. In a recent report, Save the Children said that ‘the debate about child poverty has become polarised between supporting family finances and taking steps to improve children’s life chances’. The Government is not playing a zero-sum game with child poverty measurement. There can be no doubt that income is a key part of our understanding of child poverty and who it affects. It is not, however, the only part.9 The consultation document suggested the new measure could include the following dimensions. These would be weighted according to the extent to which they play a role in child poverty, in order that they could be combined into a single number: 1. Income and material deprivation 2. Worklessness 3. Unmanageable debt 4. Poor housing 5. Parental skill level 6. Access to quality education 7. Family stability 8. Parental health10 An analysis of consultation responses by researchers at the London School of Economics found there was “near universal support for keeping income central to poverty measurement”.11 Respondents also pointed out that the dimensions proposed for inclusion conflated the causes and consequences of poverty, so combining them into a single number would not be meaningful.12
2.3 Child Poverty Strategy 2014-17 The Government published its second Child Poverty Strategy for 2014-17 on 26 June 2014. The Strategy focused on work and education as routes out of poverty and set out steps that the Government was taking to: • Support families into work and increase their earnings
9 Ibid, p14 10 HM Government, Measuring Child Poverty: A consultation on better measures of child poverty, Cm 8483, November 2012, p17 11 Researchers obtained 251 out of the total 257 responses to the consultation by submitting a Freedom of Information request. Findings are reported in: Kitty Stewart and Nick Roberts, How do experts think child poverty should be measured in the UK? in Centre for Analysis and Social Exclusion Annual Report 2015 (CASEreport 98), pp22-3 12 See for example: Social Mobility and Child Poverty Commission, Response to “Measuring Child Poverty: A consultation on better measures of child poverty”, February 2013, p2 and J Browne et al, Response of IFS researchers to “Measuring Child Poverty: a consultation on better measures of child poverty”, Institute for Fiscal Studies, February 2013, p1 12 Number CDP-0256, 15 December 2016
• Improve living standards • Prevent poor children becoming poor adults through raising their educational attainment A DWP press release (26 June 2014) provides an accessible summary of the Strategy. Upon the publication of the 2014 Strategy, Iain Duncan Smith and George Osborne repeated their commitment to introduce new child poverty measures in an article in the Guardian, identifying “entrenched worklessness, family breakdown, problem debt, drug and alcohol dependency” as root causes of poverty: For far too long, a fixation on relative income led the last government to chase an ever elusive poverty target, spending unprecedented amounts on benefits and almost £170 billion on tax credits as they tried to move poor families over the line. But it did not deal with the difficult issues. And in the process, Labour lost sight of the very people they were trying to help – leaving millions trapped on benefits, but without tackling the root causes of why they found themselves in poverty in the first place. 13 The 2014-17 Strategy built on the findings of an Evidence Review of the drivers of child poverty (published January 2014). The Review considered firstly the factors which make it harder for families currently in poverty to exit it now, and secondly the factors which increase children’s chances of being in poverty as adults. The Evidence Review found that the most important factors standing in the way of children exiting poverty were those factors contributing to a lack of sufficient income from parental employment. Educational attainment was identified as the main driver that causes poor children to become poor adults. Summary tables from the Evidence Review (showing the impact of different factors) are included in Library briefing paper Poverty in the UK: statistics (section 6.4).
2.4 The Welfare Reform and Work Act 2016 and ‘life chances’ A commitment to introduce new measures of child poverty was included in the 2015 Conservative Manifesto. We will work to eliminate child poverty and introduce better measures to drive real change in children’s lives, by recognising the root causes of poverty: entrenched worklessness, family breakdown, problem debt, and drug and alcohol dependency. 14 The then Secretary of State for Work and Pensions, Iain Duncan Smith, subsequently announced new measures to replace those in the Child Poverty Act in a Statement to Parliament on 1 July 2015. The new measures would look at children living in workless households and educational attainment at age 16, with other measures and indicators to be developed and reported on annually.
13 Iain Duncan Smith and George Osborne, The Conservatives' child poverty plan tackles poverty at source, The Guardian, 26 February 2014 14 Conservative Party Manifesto 2015, p28 Child Poverty 13
The Welfare Reform and Work Act, which received Royal Assent on 23 March 2016, introduced a new duty on the Government to report annually on ‘life chances’ indicators relating to worklessness and educational attainment. The Secretary of State must publish and lay before Parliament data on: • children living in workless households in England; • children living in long-term workless households in England; • the educational attainment of children in England at the end of Key Stage 4 (GCSE level); and • the educational attainment of disadvantaged children in England at the same stage. It is up to the Secretary of State to define what is meant by a child, household, worklessness, long-term worklessness, educational attainment, and disadvantage as part of the Government’s report. The Act also requires the Government to continue to publish data on the four income-based poverty measures used in the Child Poverty Act 2010 (although unlike the ‘life chances’ measures above, the Government does not have to lay a report before Parliament and the targets in the Child Poverty Act are removed). This duty did not appear in the Bill when it was first introduced to the House of Commons. However, after the House of Lords had amended the Bill so that the Secretary of State would have to report annually to Parliament on the four measures in the Child Poverty Act, the Government proposed this compromise which was agreed by both the Commons and the Lords.
2.5 Life chances strategy Alongside the statutory life chances measures in the Welfare Reform and Work Act (children living in workless households and educational attainment at age 16), David Cameron’s Government announced it would publish a life chances strategy which would cover other non- statutory measures. At House of Lords Report Stage of the Welfare Reform and Work Act, Lord Freud explained the strategy would “set out a comprehensive plan to fight disadvantage and extend opportunity, including a wider set of non-statutory measures on the root causes of child poverty such as family breakdown, problem debt, and drug and alcohol addiction.”15 The then Prime Minister, David Cameron, set out the Government’s thinking in a speech on life chances on 11 January, where he explained the strategy would cover four key areas: • Improving family life and the early years • Creating an education system “genuinely fit for the 21st century” • Opportunity for everyone, regardless of their background (particularly in adolescence) • Treatable problems such as alcoholism, drug addiction and poor mental health.16
15 HL Deb 25 Jan 2016 c1084 16 Prime Minister's speech on life chances, 11 January 2016. 14 Number CDP-0256, 15 December 2016
Key announcements from the speech were highlighted in press releases from the Prime Minister’s Office.17 The strategy was originally expected in spring 2016.18 However, it now appears it will not be published and the Government will instead publish a green paper on social justice some time in 2017, as explained in a Written Answer (PQ 56144, 8 December 2016): Dan Jarvis: To ask the Secretary of State for Work and Pensions, whether he plans to publish the delayed Life Chances Strategy or a replacement in 2016. Damian Hinds: The Prime Minister is clear that tackling poverty and disadvantage, and delivering real social reform, is a priority for this Government. We intend to bring forward a social justice green paper in the new year.
17 Prime minister to announce new generation of mentors to help struggling teens; Prime Minister pledges a revolution in mental health treatment; Prime Minister pledges to transform sink estates; PM: Families are the key to ending poverty, 11 January 2016. 18 HL Deb 25 Jan 2016 c1084 Child Poverty 15
3. Press Articles
In work poverty hits record high as the housing crisis fuels insecurity telegraph.co.uk, December 7, 2016, By Press Association
More than 300,000 children dragged into benefit cuts, research reveals; Some families will lose more than £100 a week from the lower cap, says the Chartered Institute of Housing -plunging them into poverty and homelessness The Independent (United Kingdom), November 1, 2016 Tuesday, Rob Merrick
Equality looks further away than ever in a Brexit, Donald Trump world; The government's Social Mobility Commission report shows progress is in reverse - and Theresa May's government has no answers The Guardian, November 17, 2016 Thursday 11:48 AM GMT, OPINION, 1042 words, Polly Toynbee
Creating child poverty for a whole new generation. Take a bow, Theresa May; I have seen how the new household benefit cuts will tear poor families apart. Even Margaret Thatcher would have balked at this The Guardian, October 31, 2016 Monday, Aditya Chakrabortty
Child poverty is set to rise by 50%. Theresa May must act now; To truly achieve a 'country that works for everyone', the new prime minister must first undo David Cameron's legacy of deprivation The Guardian, October 12, 2016 Wednesday 8:00 AM GMT, SOCIETY, 674 words, Alison Garnham
Newborns in Scotland start life with free 'baby boxes' The Independent - Daily Edition, October 16, 2016 Sunday, Jon Stone
Number of children in poverty increased by 250,000 under Conservatives, figures show; 'More and more children are being left behind in poverty, missing out on the childhoods and life chances other kids take for granted' The Independent (United Kingdom), October 1, 2016 Saturday, Caroline Mortimer
16 Number CDP-0256, 15 December 2016
Family debt seriously harms children's mental health, research finds; The number of children in the UK classed as living in poverty increased by 200,000 in the last year The Independent (United Kingdom), September 22, 2016 George Charalambou
Working households the UK’s ‘new poor’ – IFS The Financial Times, July 19, 2016, Nathalie Thomas
Back life chances rhetoric with action on child poverty - charities; Charities say strategy to improve life chances - the focus of Queen's speech - must address low family incomes as cuts to benefits hit home The Guardian, May 18, 2016 Wednesday, Amelia Gentleman
U-turn by government over changes to measurements of child poverty; Amendment to welfare bill means four indicators of child poverty including household income will be kept The Guardian, February 26, 2016 Friday 11:07 PM GMT, Patrick Butler Social policy editor
Ending poverty need not be a utopian dream The Times, September 2, 2016, By Philip Collins Child Poverty 17
4. Reports and further reading
Library briefings Poverty in the UK: statistics 15 Nov 2016 | Commons Briefing papers | SN07096
House of Lords Library briefing, Causes of Poverty in the United Kingdom, July 2016
Cross Departmental Strategy on Social Justice This debate pack has been prepared ahead of a Westminster Hall debate on a cross departmental strategy on social justice, initiated by Fiona Bruce. The debate will take place on 14 September at 2:30pm. 13 Sep 2016 | Commons Debate packs | CDP-2016-0238
Household food insecurity measurement in the UK This pack has been prepared ahead of the debate on household food insecurity measurement in the UK to take place in Westminster Hall on 6 December 2016 at 9:30am. The subject for the debate has been chosen by Emma Lewell-Buck MP. 02 Dec 2016 | Commons Debate packs | CDP-2016-0238
Income inequality in the UK 24 Nov 2016 | Commons Briefing papers | CBP-7484
Effect on equality of the Autumn Statement 2016 13 Dec 2016 | Commons Debate packs | CDP-2016-0251
The Benefit Cap 23 Nov 2016 | Commons Briefing papers | SN06294
Universal Credit changes from April 2016 16 Nov 2016 | Commons Briefing papers | CBP-7446
Effect of Universal Credit on children 09 May 2016 | Commons Debate packs | CDP-2016-0105
18 Number CDP-0256, 15 December 2016
Effect of changes to welfare benefits 09 Oct 2015 | Commons Debate packs | CDP-2015-0072
Other reports Joseph Rowntree Foundation, Monitoring poverty and social exclusion in the UK, 2016, 7 December 2016
Institute for Fiscal Studies, Living standards, poverty and inequality in the UK: 2016, 19 July 2016
Child Poverty Action Group, Child poverty facts and figures, June 2016
Joseph Rowntree Foundation, We can solve poverty in the UK, 6 September 2016
Joseph Rowntree Foundation, UK Poverty: Causes, Costs and Solutions, 6 September 2016
Joseph Rowntree Foundation, Counting the cost of UK poverty, 1 August 2016
Social Mobility Commission, State of the nation 2016: social mobility in Great Britain, 16 November 2016
Social Mobility and Child Poverty Commission, State of the nation 2015: social mobility and child poverty in Great Britain, 17 December 2015
End Child Poverty, Child Poverty Map of the UK, November 2016
Child Poverty 19
5. Parliamentary Material
Parliamentary Questions Social Mobility Asked by: Jarvis, Dan | Party: Labour Party To ask the Secretary of State for Work and Pensions, whether he plans to publish the delayed Life Chances Strategy or a replacement in 2016. Answering member: Damian Hinds | Party: Conservative Party | Department: Department for Work and Pensions The Prime Minister is clear that tackling poverty and disadvantage, and delivering real social reform, is a priority for this Government. We intend to bring forward a social justice green paper in the new year. 08 Dec 2016 | Written questions | Answered | House of Commons | 56144
Universal Credit Asked by: Abrahams, Debbie | Party: Labour Party To ask the Secretary of State for Work and Pensions, what assessments his Department has made of the potential effect of reductions to universal credit on the number of children in (a) relative and (b) absolute child poverty in each year to 2020. Answering member: Damian Hinds | Party: Conservative Party | Department: Department for Work and Pensions This Government is absolutely committed to delivering a country that works for everyone – not just the privileged few. The Prime Minister has been clear that tackling poverty and disadvantage, and delivering real social reform, will be a priority for this Government. Evidence shows that two of the biggest drivers of child poverty are long-term worklessness and low earnings. Universal Credit is designed to strengthen incentives for parents to move into and progress in work and evidence shows that under Universal Credit claimants move into work significantly faster and stay in work longer than under the old system. In addition, Universal Credit now provides for 85% of childcare costs giving parents the opportunity to work and earn more, so they can support their families and improve the life chances of their children. We have also announced a 2% reduction in the Universal Credit single taper meaning more support for hardworking families. 06 Dec 2016 | Written questions | Answered | House of Commons | 55851
20 Number CDP-0256, 15 December 2016
Social Mobility Asked by: Jarvis, Dan | Party: Labour Party To ask the Secretary of State for Work and Pensions, when his Department plans to publish its Life Changes Strategy. Answering member: Damian Hinds | Party: Conservative Party | Department: Department for Work and Pensions The Prime Minister is clear that tackling poverty and disadvantage, and delivering real social reform, is a priority for this Government and we will be coming back to the House with a number of announcements over the coming months. 17 Oct 2016 | Written questions | Answered | House of Commons | 47998
Families: Government Assistance Asked by: Bruce, Fiona | Party: Conservative Party To ask the Secretary of State for Work and Pensions, with reference to the Early Intervention Foundation review, What works to enhance interparental relationships and improve children's outcomes, commissioned by his Department and published on 22 March 2016, what steps he is taking to increase investment for interventions aimed at supporting parental relationships in order to improve children's mental health and life chances. Answering member: Caroline Nokes | Party: Conservative Party | Department: Department for Work and Pensions The Early Intervention Foundation review showed that children exposed to frequent, intense and poorly resolved conflict between their parents are at risk of poorer long term outcomes. Our new approach to relationship support responds to this evidence. Since April 2016 we have doubled the funding available for relationship support for the remainder of this Parliament. From 2017/18 we will be contracting for relationship support services which will include both help targeted at the most disadvantaged families experiencing relationship distress, as well as universal support to help all families with information and advice on building better relationships. 31 Oct 2016 | Written questions | Answered | House of Commons | 50590
Children's Centres Asked by: Lord Beecham | Party: Labour Party To ask Her Majesty’s Government whether they still intend to publish the consultation on the future of Sure Start, which they promised to initiate in July 2015, and if so when. Child Poverty 21
Answering member: Lord Nash | Party: Conservative Party | Department: Department for Education This Government is committed to improving social mobility and extending opportunity so that everyone has the chance to realise their full potential. Our approach to improving life chances will focus on tackling the root causes of poverty such as worklessness, educational attainment and family stability and we will consider future policy on children’s centres as part of this. We will make it clear how stakeholders and members of the public can contribute in due course. 01 Aug 2016 | Written questions | Answered | House of Lords | HL1311
Universal Credit Asked by: Field, Frank | Party: Labour Party To ask the Secretary of State for Work and Pensions, how many children he expects will be lifted out of poverty by the introduction of universal credit. Answering member: Justin Tomlinson | Party: Conservative Party | Department: Department for Work and Pensions The Government is committed to eliminating child poverty and improving life chances for children. We know that work is the best route out of poverty, and Universal Credit is designed to strengthen incentives for parents to move into and progress in work. Evidence shows claimants move into work significantly faster and earn more than under the current system. In addition, Universal Credit now provides for 85% of childcare costs meaning more support for hardworking families. 12 Jul 2016 | Written questions | Answered | House of Commons | 42172
Disadvantaged Families and Children: Life Chances Asked by: Neil Coyle (Bermondsey and Old Southwark) (Lab) | Party: Labour Party Many disadvantaged families have an older disabled relative, including 2,000 in my constituency who receive attendance allowance. The Government have said that they will scrap attendance allowance and pass funding to councils. When are the Government going to consult formally on those plans? Answered by: Stephen Crabb | Party: Conservative Party | Department: Work and Pensions The Government have not said that they are going to scrap attendance allowance. We are looking at options for devolving it to the local authority level, but we have been absolutely clear that this does not 22 Number CDP-0256, 15 December 2016
mean a cut to supporting attendance allowance. It is about looking at more effective ways of delivering it at the local level to achieve what it is intended to achieve. 11 Jul 2016 | Oral questions - Supplementary | Answered | House of Commons | House of Commons chamber | 613 c4
Disadvantaged Families and Children: Life Chances Asked by: Debbie Abrahams (Oldham East and Saddleworth) (Lab) | Party: Labour Party Last year, child poverty increased by 200,000 as a direct result of the Government’s tax and social security policies, with two thirds of these children living in working households, and it is estimated that by 2020 more than 3.6 million children will be living in poverty. There is overwhelming evidence that child poverty has a direct and negative impact on children’s social, emotional and cognitive outcomes and ultimately on their life expectancy. Given the catastrophic consequences of Government policy implemented on scant evidence, will the Secretary of State do the right thing and repeal the damaging effects of the Welfare Reform Act 2012 and the Welfare Reform and Work Act 2016, which threaten the life chances of these children? Answered by: Stephen Crabb | Party: Conservative Party | Department: Work and Pensions I welcome the hon. Lady to her new position on the Front Bench. Given her work in the Select Committee, I am sure she will do an excellent job in the shadow role. The 200,000 figure that the hon. Lady mentioned exactly points to what was wrong with the previous relative income approach, which her previous Government took to tackling poverty. When real wages grow, poverty rates increase, despite people’s incomes not falling. It is much more important to tackle the underlying causes of poverty— worklessness, educational failure, family stability, problem debt and addictions. 11 Jul 2016 | Oral questions - Supplementary | Answered | House of Commons | House of Commons chamber | 613 c3
Disadvantaged Families and Children: Life Chances Asked by: Alison McGovern (Wirral South) (Lab) | Party: Labour Party The Secretary of State has mentioned support for working parents several times, but those hit hardest by the Government’s cuts to in-work support for parents are single parents—those who least deserve it—so, on this issue and that of helping single parents, will he think again? Answered by: Stephen Crabb | Party: Conservative Party | Department: Work and Pensions Child Poverty 23
I share the hon. Lady’s passion for helping single parents. The current statistics all demonstrate and underline that when lone parents are supported back into work, they can achieve remarkable things in bringing children in those households out of poverty. The trends are moving in the right direction. She should welcome initiatives such as universal credit and our support for childcare costs. 11 Jul 2016 | Oral questions - Supplementary | Answered | House of Commons | House of Commons chamber | 613 c3
Poverty Asked by: Lord Bird | Party: Crossbench To ask Her Majesty’s Government, in the light of the Office for National Statistics report on the levels of (1) persistent, and (2) overall, poverty rates in the United Kingdom, what new actions they intend to take to eradicate poverty and the causes of poverty in this Parliament. Answering member: Lord Freud | Party: Conservative Party | Department: Department for Work and Pensions This Government’s welfare reforms are focused on supporting people to find and keep work whilst ensuring that we are protecting the most vulnerable. At the end of the Parliament we will be spending over £60bn – 3% of GDP – supporting people on low incomes. We know that work is the best route out of poverty. Evidence shows that almost three-quarters of poor workless families who found full employment escaped poverty; and that the highest poverty exit rate of 75% was for families that moved from part to full employment. The number of children living in workless households is down by 449,000 since 2010 Our new life chances approach to poverty and disadvantage will include a set of indicators to measure progress in tackling the root causes of poverty such as worklessness, educational attainment and family stability. 29 Jun 2016 | Written questions | Answered | House of Lords | HL720
Poverty Asked by: Lord Ouseley | Party: Crossbench To ask Her Majesty’s Government what assessment they have made of the implications for social and community cohesion of people living in poverty. Answering member: Baroness Williams of Trafford | Party: Conservative Party | Department: Department for Communities and Local Government Building a strong economy and increasing employment are the surest way to lift people out of poverty and build strong and cohesive communities. The latest figures show a record 31.6 million people are 24 Number CDP-0256, 15 December 2016
now in work making a real difference to families on the ground with the number of children in workless households at a record low. Britain has a claim to be the most successful multi-faith, multi-racial democracy in the world. The Community Life Survey 2014-15 shows a well-integrated society with 87 per cent of people reporting they belong strongly to Britain and 86 per cent that their local area is a place where people from different backgrounds get on well together. But we know deep seated inequalities remain between some minority groups and the majority population, and have set in train work to address these inequalities:
o a review by Louise Casey into boosting opportunity and integration in the most isolated and deprived communities to inform a major new Cohesive Communities Programme;
o a 2020 vision to increase Black, Asian and Minority Ethnic opportunities, such as take up of apprenticeships and employment; and
o plans to publish a Life Chances Strategy, announced in January, setting out a comprehensive plan to fight disadvantage and extend opportunity. 06 Jun 2016 | Written questions | Answered | House of Lords | HL287
Universal Credit Asked by: Reeves, Rachel | Party: Labour Party To ask the Secretary of State for Work and Pensions, what estimate he has made of the effect of the reduction of work allowances under universal credit announced in the Summer Budget 2015 on the number of children living in relative poverty in (a) 2016-17, (b) 2017-18, (c) 2018-19, (d) 2019-20 and (e) 2020-21. Answering member: Priti Patel | Party: Conservative Party | Department: Department for Work and Pensions The Government is committed to working to eliminate child poverty and improve life chances for children. Work remains the best route out of poverty, and Universal Credit is designed to strengthen incentives for parents to move into and progress in work. Early evidence shows claimants move into work significantly faster than under the current system. In addition, Universal Credit now provides for 85% of childcare costs meaning more support for hardworking families. 04 May 2016 | Written questions | Answered | House of Commons | 35664
Child Poverty 25
Workless Households Asked by: Chris Green | Party: Conservative Party Does my right hon. Friend agree that making progress in reducing the number of people in workless households is key to improving the life chances of millions of children? Answered by: Mr Duncan Smith | Party: Conservative Party | Department: Work and Pensions I do agree with my hon. Friend. From all the evidence, we know that children in workless households grow up without the aspiration to achieve, something they might have if they grow up in driven families who are in work. They are almost certain to repeat the difficult lives of their parents and we want to turn those lives around. Since 2010, the number of workless households in the social rented sector has fallen by more than 280,000 to a record low. It is worth remembering that when we took office in 2010 the number of households where no one had ever worked had nearly doubled under the previous Labour Government. 14 Mar 2016 | Oral questions - 1st Supplementary | Answered | House of Commons | House of Commons chamber | 607 c646
Poverty and Life Chances Review Asked by: Field, Frank | Party: Labour Party To ask the Secretary of State for Education, what steps she has taken in response to the recommendations of the Independent Review on Poverty and Life Chances, published in 2010. Answering member: Mr Sam Gyimah | Party: Conservative Party | Department: Department for Education This government wants to see every child fulfilling their potential and succeeding in life. The Secretary of State for Work and Pensions recently announced that this government will focus on improving life chances by tackling the root causes of child poverty. It believes that action to ensure that parents can work and to improve educational attainment across the board will make the biggest difference to the lives of children, now and in the future. The Welfare Reform and Work Bill, introduced to Parliament on 9 July, includes a new statutory duty for government to report on these two key drivers of children’s life chances. The government agrees with the view set out in the Independent Review that what happens before children start school is crucial in their development and later attainment. The Effective Pre-school, Primary and Secondary Education Project has shown a child has a greater chance of getting better exam results, and ultimately earning higher wages, by receiving pre-school education. That is why in 2010, the government extended the number of hours of free early education to which all three- and four-year-olds are entitled from 12.5 to 15 hours a week. 26 Number CDP-0256, 15 December 2016
Since September 2013, the most disadvantaged two-year-olds across England have been able to access their 15-hour-a-week funded early learning place a year early. The Government has also introduced additional funding to support disadvantaged three and four year olds in early years settings through the Early Years Pupil Premium. This has been designed to close the gap at ages 3 and 4 between the additional support disadvantaged children get at age 2 through the free entitlement and the additional support they get in school through the school-age Pupil Premium. At the Budget, the Government reconfirmed its manifesto commitment to help hard-working families reduce the cost of childcare which will make it easier for parents to work if they would like to, knowing that their children are well cared for. The Government will set out more information about improving the life chances of children in a Life Chances Strategy in due course. 21 Jul 2015 | Written questions | Answered | House of Commons | 7422
Debates Household Food Insecurity Motion that this House has considered household food insecurity measurement in the UK. Agreed to on question. 06 Dec 2016 | Debates | House of Commons | 618 cc1-16WH Lead member: Lewell-Buck, Emma | Answering member: Glindon, Mary · Eustice, George
Child Poverty Lords question for short debate on what plans they have to address the root causes of child poverty 17 Nov 2016 | Questions for short debate | House of Lords | 776 cc1578-1593 Lead member: Bird, Lord | Answering member: Freud, Lord
Cross-departmental Strategy on Social Justice Motion that this House has considered cross-departmental strategy on social justice. Agreed to on question. 14 Sep 2016 | Debates | House of Commons | 614 cc383-411WH Lead member: Bruce, Fiona | Answering member: Nokes, Caroline
Life Chances Strategy Lords question for short debate on what steps they are taking to deliver the Life Chances Strategy to transform the lives of the most Child Poverty 27
disadvantaged people in Britain, as outlined by the Prime Minister on 11 January. 11 May 2016 | Questions for short debate | House of Lords | 771 cc1748-1772 Lead member: Farmer, Lord | Answering member: Altmann, Baroness
In-work Poverty Motion that this House has considered in-work poverty. Agreed to on question. 28 Jan 2016 | Debates | House of Commons | 605 cc207-222WH Lead member: Harris, Carolyn | Answering member: Patel, Priti · Thomas-Symonds, Nick
Child Poverty Motion that this House has considered levels of child poverty. Agreed to on question. 26 Jan 2016 | Debates | House of Commons | 605 cc66-75WH Lead member: Dowd, Peter | Answering member: Patel, Priti · Thomas-Symonds, Nick
Child Poverty Motion that this House has considered child poverty. Agreed to on question. 15 Sep 2015 | Debates | House of Commons | 599 cc253-278WH Lead member: Oswald, Kirsten | Answering member: Tomlinson, Justin
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