Child poverty problem in the capital is severe, says report

The interim report of the London Child Poverty Commission, published yesterday (4 September) by the Mayor of London, also shows 68 per cent of children who live in social housing in the whole of Greater London are in poverty, compared to 58 per cent nationally.

Carey Oppenheim, chair of the commission, said: "The Government set itself the ambitious target of eradicating child poverty in a generation and there has been real and significant progress in the UK. But in London it has been much harder."

The report says families in London stay in poverty longer, are more likely to be unemployed, have fewer housing choices and have higher housing and living costs than elsewhere in the country. The capital's families also face greater competition for jobs.

According to the commission the problem needs to be tackled in a multitude of ways including increasing job opportunities and pay, more part-time and flexible work and reforming the tax and benefits system.

"The low pay problem for London parents would not be resolved by a higher minimum wage alone," the report states. "This is because of the very high marginal deduction rates faced by low income families - for every extra pound earned, 85p or more is lost through reductions in benefits and tax credits."

The report also suggests incentives for employers to pay better wages such as a branding, similar to Fairtrade, to promote ethical and social employment standards. There is also a case for looking at targets to reduce the gap between regions with the lowest and highest child poverty rates, the commission argues.

The commission, which was set up by Ken Livingstone in February 2006, is to hold a series of consultation meetings during the next few months to examine the issues highlighted in the report.

- www.london.gov.uk.