
This briefing summarises the contents of the Child Poverty Bill introduced to Parliament in June 2009 and raises three key areas for improvement. The second reading debate in the House of Commons is on the 20th July 2009.
About End Child Poverty
End Child Poverty is a growing coalition of over 150 children’s and other charities, social justice groups, faith-groups, trade unions and other organisations concerned about the unacceptably high levels of child poverty in the UK. These organisations have united to demand current and future Governments Keep the Promise to End Child Poverty.
Background and content of legislation
Government has published draft legislation placing the 2020 commitment to eradicate child poverty into law. End Child Poverty welcomes this legislation as an important step forward in making tackling child poverty a priority for all Governments - ending child poverty is not a luxury, but a necessity. As well as a 2020 target we believe that clear interim milestones are needed to help hold government to account. However the first step to tackling child poverty in the future is tackling it today, we need to see urgent action to help hard pressed families now as well as a strong bill which carries forward that action into the future. Previously End Child Poverty has published key principles1 sought from the legislation.
The draft legislation proposes:
• Publication of a child poverty strategy, to be refreshed every three years. The Bill will place an obligation on Government to produce a child poverty strategy, setting out how it intends to ensure that the 2020 target will be achieved.
• Annual reporting on progress against the strategy to Parliament. The Bill places an obligation on Government to report to Parliament annually on progress against the strategy.
• Establishment of an independent child poverty commission. The commission will be charged with advising Government on the development and implementation of its strategy.
• Introduction of a duty on local government and partners to drive progress. Different governance structures mean this provision will apply in English authorities only (though Wales has developed similar provisions). The child poverty duty also requires a child poverty needs assessment.
• Ways of devolved administrations and UK government working together. The bill lays out how UK government is expected to work with devolved administrations (for instance requirements to engage on strategy development), and how devolved administrations are expected to draw up strategies to show their contribution to tackling child poverty.
End Child Poverty welcomes the child poverty legislation, though we also call for urgent action now as well as legislation for the future. We are pleased at the political consensus that recognises child poverty as a major scar on British society and a cost we can no longer afford. We hope that this political consensus is maintained and built on by this legislation. Our organisations look forward to working with Government and Opposition parties to build on this consensus and provide an effective legislative base for eradicating child poverty once and for all.
Defining the eradication of child poverty
Previously Government has specified the end point of eradicating child poverty should be ‘among the best in Europe’. On the central measure of child poverty, the Government now proposes an end point of below 10% of children living in poverty on this measure. Currently on this measure 23% of children or 2.9 million children are living in poverty. Though reducing child poverty from 23% to 10% would significantly reduce the extent of poverty, one in ten children living in poverty is not the same as eradication.
Government argues that on the measure (relative low incomes) being used, it will not be possible to reach zero because of survey limitations and as some families will always have short periods of time where their income drops below the poverty line. End Child Poverty argues that the end point should be defined as the lowest point achieved elsewhere in Europe, which shows what can be achieved. This suggests the end point should be no higher than 5% of children living in poverty.
Current economic circumstances
Though members of End Child Poverty support the 2020 goal, families are suffering now in the midst of an economic downturn and rising unemployment. Far from that making it too expensive to invest in families now (and to get as close as possible to the 2010 target), it makes it imperative that Government helps hard pressed families now and in the pre-budget statement as part of the recovery plan.
The legislation contains a section (clause 15 – ‘Economic and fiscal circumstances’) which requires both the Child Poverty Commission, UK and Devolved Government to take into account the impact of measures to tackle child poverty on the economy, and on the impact of measures on taxation, spending and borrowing. This clause does not refer to the fiscal benefits which preventing and tackling child poverty would bring about (child poverty is estimated to cost the UK at least £25 billion each year). Though it is important that measures are cost effective in tackling child poverty, End Child Poverty is concerned that this clause weakens the legislation and strategy development process.
The Child Poverty Commission
The legislation establishes a Child Poverty Commission. This Commission is tasked with giving advice to Government (Scottish, Northern Irish and UK) on tackling poverty, with authorities required to have regard to advice in drawing up strategies to tackle child poverty. It is welcome that the Commission will be enabled to publish its advice to help increase the profile of child poverty as an issue and to help keep Government to account on its policy.
End Child Poverty believes that the Commission is an important part of the accountability process. To help the Commission do its role effectively, it will need proactive powers to scrutinise policy and an appropriate public profile. The Commission’s work should be reinforced by giving it access to a research budget and the ability to direct this research to support its scrutiny. It will also be important that alongside organisations and representation of those from different parts of the UK, the Commission membership includes those with direct experience of poverty.
1 http://www.endchildpoverty.org.uk/files/a2209%20Final%20ECP%20Principles.doc