Briefing: Research report - Child poverty

Higher taxes and more generous benefits are the only way the Governmentcan end child poverty by 2020, says a Joseph Rowntree Foundation reportpublished last week.

The report, What Will it Take to End Child Poverty?, examines theprogress so far on reducing child poverty and concludes that only bigincreases in benefits can ensure Labour meets its 2020 target.

Increased employment accounted for a significant part of theGovernment's early success in reducing child poverty. But the reportsays back-to-work schemes will make little difference from now on sincemany children still in poverty have lone, disabled or ill parents whowill have difficulty getting and keeping jobs.

Instead the Government needs to increase benefits to meet itstarget.

The report proposes two measures to meet the Government's targets. Firstthe child element of the child tax credit should rise from 37 to53 a week so the Government can meet its aim of halving childpoverty by 2010. This would cost 4.2bn a year - roughly 4,300 per child lifted out of poverty.

The second measure is to raise all benefits for families with childrenby five per cent above the annual increase in earnings. This would liftall or nearly all children out of poverty by 2020, but would cost 27.6bn or 22,600 per child.

But, warns the report, these changes will need large tax rises todeliver and the Government must be careful not to undermine incentivesfor parents to work. The report also says better childcare and educationservices are needed to defeat child poverty in the longer-term.

Kate Green, chief executive of the Child Poverty Action Group, backedthe proposals: "The simple truth is that further investment in benefitsand tax credits is vital to lift people out of poverty, ensure that workpays and meet the 2010 goal."

FACT BOX
- London has the highest level of child poverty in the country
- Scotland has a lower child poverty level than England or Wales
- The report is available from www.jrf.org.uk