Memorandum Submitted by Barnardo's (CP 03)

 

1 Introduction

1.1 Barnardo's works directly with over 100,000 children, young people and their families every year through 400 projects across the UK. We use the knowledge gained from our work with children to campaign for better policy and to champion the rights of every child. With the right help, committed support and a little belief, even the most disadvantaged and vulnerable children can turn their lives around.

 

1.2 Barnardo's aims to reduce the impact of poverty on children, young people, families and communities through social, economic and community action - around one third of our work focuses on the alleviation of poverty, and it is an inescapable element of nearly all our services. Our experience means we come into contact with many families where no one is currently in paid employment, or who are living on a low income. The measures proposed in the Child Poverty Bill will therefore have a direct impact on many of the families we work with.

 

2 Barnardo's summary position on the Bill

2.1 Barnardo's welcomes the Child Poverty Bill and the Government's effort to enshrine the 2020 target for the eradication of child poverty in law. We believe that putting the target into legislation is a major opportunity to shape and drive policy to tackle poverty and thereby improve children's chances and the quality of their childhood. Well designed legislation can offer a solid framework to appropriately direct policy and resources, as well as a robust monitoring framework to hold Government to account so that the UK keeps on track to a 2020 free of child poverty.

 

2.2 There are four key areas where we will seek changes:

i. Economic and fiscal circumstances

ii. Targets relating to child poverty

iii. The expert commission

iv. Impact of measures on the 'most vulnerable' children

 

3 The economic and fiscal circumstances (clause 15)

3.1 The Government's consultation on the child poverty legislation proposed that meeting the 2020 target should be subject to 'overall affordability.' We note that Government has shifted emphasis of economic considerations from the targets themselves to the strategies that must deliver progress towards the targets.

3.2 Clause 15 of the Bill requires the UK Government, the Devolved Administrations and the Child Poverty Commission to take into account the impact of measures to tackle child poverty on the economy and on taxation, spending and borrowing. Fiscal and economic circumstances are to be regarded before any strategy is published or advice given to devolved governments and local authorities. Clause 15 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)[1]. Though it is important that measures are cost effective in tackling child poverty, Barnardo's is concerned that this clause weakens the legislation and strategy development process.

 

3.3 At the Work and Pensions Select Committee the Financial Secretary to the Treasury, the Rt Hon Stephen Timms MP stated that the strategy would need to take into account the broader economic position and represent value for money but that the targets in the Bill are absolute and would not change[2]. However, he accepted that the targets would not be met if the strategy was not adequately resourced.

 

3.4 Barnardo's and the Campaign to End Child Poverty are seeking clear assurances from the Minister that the Government's legal advice has indicated this clause would not allow 'economic and fiscal circumstances' to become used as a legally acceptable excuse for failure to meet the targets. If the Government's intention is that money must be spent in a cost effective way then the wording of the Bill should reflect that.

 

3.5 We would welcome debate on how the Bill can reflect the fact that the success of the strategies in meeting the income target and by taking measures in each of the building blocks (employment and adult skills; financial support; services for children, young people and families; and housing and neighbourhoods) will require delivery across many Government departments. It will also depend on being adequately resourced, through economic downturns as well as in favourable conditions.

 

3.6 We believe the Bill should require the strategy to set out what resources will be available. The success of the strategy to deliver across all Government departments will depend in it being adequately resourced - either through new resources or 'bending the funding' towards poorer children as happens in Wales.

 

4 Targets relating to child poverty (Clause 2)

4.1 Government has stated its ambition that the end point of eradicating child poverty should be 'among the best in Europe'. On the central measure[3] of child poverty described in Clause 2 (the relative low income target), the Government now proposes an end point of below 10% of children living in poverty.

 

4.2 Currently on this measure, 23% of children or 2.9 million children are living in poverty. Although reducing child poverty from 23% to 10% would significantly reduce the extent of poverty, we do not believe that one in ten children living in poverty meets the definition of 'eradication'.

 

4.3 The 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. Barnardo's supports the Campaign to End Child Poverty in maintaining that the end point should be defined as the lowest point achieved elsewhere in Europe offering a target that we know can practically be achieved. This suggests the end point should be no higher than 5% of children living in poverty.

 

4.4 As a leading member of the Campaign to End Child Poverty, Barnardo's is calling for the relative income target in Clause 2 to be set at 5% or lower.

 

5 The expert commission (Clauses 7, 9 and Schedule 1)

5.1 We welcome the Government's intention to set up an expert commission to guide progress towards the target. It is crucial that the expert commission have a formal role in both designing the strategy and scrutinising progress towards the targets. We expect Government to consult on the terms of reference for the commission.

 

5.2 We are concerned that the timeline proposed in the Bill for the setting up of the Commission and publication of the first strategy could limit the ability of the Commission to effectively influence the first strategy.

 

5.3 The Bill requires the first strategy to be laid before Parliament within 12 months of Royal Assent. The Commission will only be formally constituted following Royal Assent and will therefore need to play 'catch up'.  We believe the Government should establish a shadow commission before Royal Assent to ensure the first strategy is as robust as possible, and have a similar function to the shadow Climate Change Commission that was set up ahead of royal assent of the Climate Change Bill.

 

5.4 We would welcome assurances from the Minister that:

· The expert commission will have a research budget and be able to independently call for evidence.

· Consideration will be given to a 'shadow commission'.

 

6 Impact of measures on the 'most vulnerable' children

6.1 We welcome the requirement on the UK government and devolved nations to prepare child poverty strategies and the areas in which measures ought to be taken, outlined as a series of 'building blocks': employment of parental and skills, financial support, health, education and social services, and housing and the built environment (clause 8, subsection 5).

 

6.2 Certain groups of children in the UK are more vulnerable to living in poverty, for example young carers who often live with families out of work and dependent on benefits[4]. One in six families with disabled children go without essentials such as food and heating due to lack of money[5], and are at greater risk of living in poverty compared to the average household (in 2007/8, 26 per cent risk, compared to 20 per cent respectively)[6]. Evidence shows us that these children are more likely to comprise the 10 per cent still living in poverty once the targets have been met.

 

6.3 We believe that the strategies must target these groups at greater risk of living in poverty by taking into account how measures taken in each of the 'building blocks' will impact the 'most vulnerable' children. We do not want to see additional 'building blocks' for specific groups but flexibility within the strategy to give particular consideration to any group that may be more vulnerable and at greater risk of living in poverty.

 

6.4 As a member of the Campaign to End Child Poverty, Barnardo's is calling for the Government to ensure that in preparation of the UK strategy, the Secretary of State must consider how measures taken in each of the 'building blocks' will impact children and parents most at risk of poverty.

 

October 2009



[1] Hirsch, Donald (October 2008) Estimating the costs of child poverty, Joseph Rowntree Foundation

[2] Oral Evidence to Work and Pensions Select Committee 17th June 2009 (taken from uncorrected transcript). http://www.publications.parliament.uk/pa/cm200809/cmselect/cmworpen/uc702-i/uc70202.htm

[3] Children living in households with incomes below 60% of the national median income, before housing costs. Though Government quotes incomes before housing costs, Barnardo's and End Child Poverty believe that incomes after housing costs have been deducted gives a clearer measure of poverty. In 2007/08 one in three children in the UK (4.0 million) were living in poverty, after housing costs.

[4] Dearden C and Becker S (2001) Growing up Caring: Vulnerability and Transition to adulthood - young carers experiences National Youth Agency/Joseph Rowntree Foundation

[5] Contact a Family (2008) Counting the Costs

[6] Department for Work and Pensions (2009), Households Below Average Income Survey 1994/5-2007/8