A staggering two million children now have no parent in work, and the number of children in families having to survive on benefits has jumped by 170,000 in twelve months. Child poverty is on the increase in affluent areas like Surrey and Berkshire, as well as those traditionally hard hit.
However, our new report, ‘Through thick and thin: tackling child poverty in hard times’ by Donald Hirsch, reveals there is still time for the government to meet its target of halving child poverty in 2010, if action is taken now.
In 1999, the government pledged to eradicate child poverty by 2020, and half a million children have been lifted out of poverty since then. We fully endorse this promise, as well as current moves to enshrine this pledge in legislation through the Child Poverty Bill. We are now asking for increased support to build upon the significant progress made over the last decade, and make a difference to even more families across the country.
Urgent implementation of our ‘recession recovery package’ will help keep families out of debt, lift hundreds of thousands more children out of poverty, and support Britain’s economic recovery.
We are calling for additional financial support for families in benefits and tax credits in the Pre-Budget Report in November, as well as a wider package that improves the Social Fund, increases childcare, helps parents to work part time without losing benefits, and meets extra school costs.
Investing in benefits and tax credits is the fastest and most cost effective way to support families and children, and help them avoid debt. Around £4 billion – an addition of around £12.50 to Child Tax Credit for each child from low-income families – would ensure that the 2010 target to halve child poverty is met. This is a drop in the ocean compared to the £25 billion which child poverty costs the economy each year.
Our one caveat is that the call for a means-tested benefits system could lead to even fewer families receiving funding, as a result of the complexity in identifying eligibility for qualification, and the potential reduction in take-up because of the stigma attached to the process.
Our other recommendations include increasing funding and access to the Social Fund, as well as extending eligibility to families on working tax credit. Urgent costs such as a broken oven or funeral could be met by low income families more easily.
Also, working tax credit only covers 80% of the costs of childcare. Increasing support for childcare costs by meeting the other 20% will help ensure parents are better off in work.
An earnings disregard of £50 a week would help lone parents on benefits who can only get jobs of 16 hours or less. A third of all Jobcentre Plus vacancies are for this type of job.
Extending free school meals to families on working tax credit would make the difference between being better off in work and claiming benefits. A school clothes grant for unemployed families will also help keep many out of debt when the extra costs arise.
To push through our recommendations, we are urging the public to support the Recession Recovery Package for Families by contacting their MP, the Chancellor or local newspaper. For more information, please visit www.endchildpoverty.org.uk.