A general increase in the wealth of society does not inevitably ‘trickle down’ to individuals and communities in poverty, according to a Welsh Government five-year action plan on poverty. There are multiple barriers preventing people from fulfilling their potential and the government needs to tackle these across a wide front.
The benefits system is unaffordable, traps people in poverty and encourages irresponsibility, according to the Prime Minister. In a speech on welfare he called for a debate about the fundamental purpose of the benefits system, and put forward a wide range of possible reforms.
David Cameron was speaking in his capacity as leader of the Conservative Party, rather than on behalf of the government. He said the government has made a ‘good start’ on reform but he signalled the need for further radical measures at some stage in the future, probably after the next election. Key possibilities for reform include:
Current government policy on social justice hinges on the claim that there are 120,000 ‘troubled’ families in Britain. In this paper, Ruth Levitas argues that if we interrogate the research on which this figure is based, it turns out to be a factoid – something that takes the form of a fact, but is not. The claim is used to support policies that in no way follow from the research on which the figure is based. Read a summary.
In this consultation response, the PSE: UK research team is highly critical of the Coalition government’s social mobility strategy and, in particular, its claim that the best way to tackle intergenerational mobility is to break the ‘the transmission of disadvantage from one generation to the next’. The PSE policy working paper dismisses the idea that poverty is ‘transmitted’ between generations as ‘simply incorrect’ and argues that the best way to tackle intergenerational disadvantage and low social mobility is to eradicate poverty among children and adults. Read a summary.
In this consultation response, the PSE research team welcomes the emphasis on early years in the Field Review’s report, The Foundation Years: Preventing Poor Children becoming Poor Adults, but is critical of key aspects of the report. The response working paper argues that key elements of the proposed strategy are ‘narrow, partial and highly likely to be ineffective’. Read a summary.
The statutory target to halve child poverty by 2010 was missed, an official report has confirmed. The government immediately announced plans to change the target measure – to include income, but providing a ‘more accurate picture’ of the reality of child poverty.
The official report says the number of children living in relative income poverty in 2010/11 was reduced to 2.3 million, but this was 600,000 short of the number required to meet the target set under the Child Poverty Act 2010. The report confirms plans, already signalled in a speech by the Work and Pensions Secretary Iain Duncan Smith, to consult on new measures of child poverty in autumn 2012.
Labour governments cut child poverty on a scale and at a pace unmatched by other industrial nations during the period 1998–2010, campaigners have concluded. But they warn that the government’s policies since 2010 risk wiping out all the gains made.
The Child Poverty Action Group report brings together 15 expert contributions, each looking at a different aspect of child poverty. They assess both the record on child poverty up to 2010 and the prospects to 2020 (the target date in law for the elimination of child poverty).
As background to the Budget, the Institute for Fiscal Studies (IFS) published a summary of recent analyses looking at the likely trends in household incomes over the next few years and, in particular, how they are likely to be affected by tax and benefit changes that are currently planned for 2012/13 (see IFS Briefing Note BN126). This found that households with children will lose most from tax and benefit changes in the coming year (see IFS press release).
The IFS also looked at the impact of changes to the tax threshold and the aim of increasing the personal tax threshold to £10,000 (see A £10,000 tax allowance: who would benefit, and would it boost the economy?). The IFS concludes:
The European Commission has warned over the potential impact of benefit cuts on UK poverty, particularly child poverty.
The Commission has assessed progress made in ‘reforming’ national budgets in line with agreed European Union priorities. Governments generally have not done enough to allow the EU to meet its targets for the fight against poverty, it says.
In a separate report on the UK the Commission says that:
The existing method for measuring child poverty is inadequate, according to a new think-tank report. It says the method fails to acknowledge that poverty is about much more than a lack of income.
The report comes from the Centre for Social Justice, established by the current Work and Pensions Secretary Iain Duncan Smith when he was in opposition. It directly criticises the income-based targets for eliminating child poverty contained in the previous Labour government’s Child Poverty Act 2010.