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Since 1997, rates of child poverty in Scotland have reduced significantly as a result of unprecedented levels of investment and a strong political will that now appears to be shared by all. We welcome this success, but are concerned that the rate of reduction may now be slowing. In order to reach the target of halving child poverty by 2010, the Government will need to match, if not surpass the level of resources and of commitment of the past decade.
Poverty is often passed from generation to generation. The reduction of child poverty therefore offers the opportunity to break the cycle of deprivation. Child poverty can be tackled through many of the same strategies as poverty in general. By maximising the incomes of parents (and parents-to-be), children will no longer be born into poverty. Our previous Report on Poverty in Scotland emphasised the need for an integrated strategy, working co-operatively with the Scottish Executive and local authorities. Inconsistencies and administrative complexities remain in some areas of the welfare system. Throughout this Report, we have emphasised the importance of simplifying the tax and benefits system.
The Government has focused on work as a route out of poverty, yet a significant proportion of those children living in poverty come from households where at least one parent is working. In order to continue to reduce child poverty, the problems of low pay, job retention and career advancement must be tackled. Access to affordable and suitable childcare is key, both for working parents and for those who wish to undertake training to improve their skills and employability. Parents of disabled children face a particular challenge in securing appropriate childcare. Equally, the Government must be cautious in suggesting that all parents are now expected to enter paid work. The contribution to society made by full-time carers must not be undervalued.
Child Tax Credits have been a key factor in reducing levels of child poverty, but given the complexity of the tax credit system, we are concerned that the Government should do its utmost to improve awareness of entitlements. The balance of such targeted programmes of support also needs to be kept under review. It is possible that, once some groups have been helped out of poverty, others may be left behind. The tax and benefits system must be flexible enough to respond to these changing needs.
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