Memorandum submitted by Action for Children (CP 06)

 

 

1.0 Summary

 

1.1 Action for Children fully supports the principles set out in the Child Poverty Bill. In particular, we recognise that the long-term eradication of child poverty must necessarily include access to a wider range of services for families with complex and enduring issues in order to tackle on-going cycles of deprivation.

 

1.2 We call on all political parties to give their full commitment to enshrining a legal duty to take action to address child poverty by 2020. This legislation is a bold and significant step forward in providing the accountability necessary. We further welcome the integrated UK-wide nature of the legislation, as cooperation between the Westminster government and devolved administrations will be critical to achieving the 2020 target.

 

1.3 Our recent research has found that governments are failing to make the best use of public resources to improve the key areas that affect children's lives, such as poverty and inequality, together with the psychological and social dimensions of their wellbeing. As a consequence of this failure the UK spends far more money than its European neighbours remedying preventable social problems. This piece of legislation must support a more intensive policy of spending more wisely on public services that focus on prevention and early intervention.

 

1.3 The UK government faces a formidable challenge in meeting the complex and often long standing needs of the most vulnerable children, families and young people in our society to break the cycle of deprivation. National government, local government and service providers must all work together to achieve these aims.

 

 

2.0 Action for Children

 

2.1 Action for Children works with over 156,000 children, young people and their families through around 420 projects across the UK, directly helping families and children facing poverty and deprivation. Action for Children sees at first hand the difference that policy backed by effective provision can make to the lives of vulnerable children and young people, as well as the challenges and obstacles that those we work with still have to face. We know that the impact of deprivation can scar families' lives over generations and result in high levels of child neglect. We are committed to exploring how families remain trapped within cycles of deprivation, what this means for them, as well as developing a sound evidence base about the services proven to work in tackling child deprivation.

 

2.2 Action for Children's reports and campaigning contribute to the policy debate around these issues. Our recent report, Backing the Future: why investing in children is good for us all, produced in partnership with nef (the new economics foundation), found that governments across the UK are failing to invest efficiently in the future of our society through our children and families. We need more of the targeted interventions that we know work for the most vulnerable children to improve outcomes and address the root causes of intergenerational deprivation.

 

2.3 Our research demonstrates that judicious targeted intervention is cost-effective and helps release families from the trap of cyclical deprivation and reduce the likelihood of family breakdown. These services give hope to the most vulnerable children and their families by boosting their confidence and instilling a sense of aspiration. Investment in these services will empower people to make the most of education, training and employment opportunities and lift themselves out of the cycle of deprivation.

 

Action for Children's views on the proposed legislation

 

 

3.0 ENSHRINING TARGETS TO ERADICATE CHILD POVERTY BY 2020 IN LEGISLATION

 

Clause 2: The relative low income target

 

Action for Children's views

 

3.1 Though reducing child poverty from 23% to 10% would significantly reduce the extent of poverty, one in ten children living in poverty is not the same as eradication. Action for Children supports calls for the target for the proportion of children in relative low income to be set at 5% or below. The end point should be defined as the lowest point achieved elsewhere in Europe which is 5% of children living in poverty.

 

 

4.0 CHILD POVERTY COMMISSION

 

Clauses 7, 9 and Schedule 1: Establishing a Child Poverty Commission and consultation with others

 

Action for Children's views

 

4.1 The legislation establishes a Child Poverty Commission. This Commission is tasked with giving advice to Government (Scottish, Welsh, Northern Irish and UK) on tackling poverty, with authorities required to have regard to advice in drawing up strategies to tackle child poverty. It is welcome that the Commission will be enabled to publish its advice to help increase the profile of child poverty as an issue and to help hold Government to account on its policy.

 

4.2 Action for Children seeks clarification and assurances from Government about the independence and autonomy of the proposed Commission; how it will function, what resources it will have, and what the duty will be on Government to respond to any of the Commission's recommendations. The Government must ensure that the Commission will have the scope and budget to initiate the commissioning of research and the power to call for evidence and give advice.

 

 

5.0 STRATEGIES

 

Clause 8 - 11: UK Strategies

 

Action for Children's views

 

5.1 We support the inclusion of a duty on the UK Government and devolved administrations to publish and lay a Child Poverty Strategy every three years. Further to this we fully support provisions for the UK Strategy to take account of wider aspects that impact on deprivation including employment and skills of parents, health, education and social services and housing.

 

5.2 In preparing a UK strategy, we believe that the provision of early years services should be explicit within Clause 8 (5) (c) as an area for consideration of the measures that ought to be taken. What happens in the early years of a child's life has a fundamental impact on their future development.

 

5.3 We see this section as the heart of the bill as its implementation is essential to successful interventions that address the needs of families which are often complex and long standing. As these elements are absolutely essential we propose that these strategies should be labelled 'Deprivation Strategies' to send a clear signal that all elements need to be addressed.

 

 

6.0 ECONOMIC AND FISCAL CIRCUMSTANCES

 

Clause 15: Economic and fiscal circumstances

 

6.1 The Government's consultation on the child poverty legislation proposed that meeting the 2020 target should be subject to overall affordability, so that in adverse economic circumstances the Government could be exempt from the legal commitment to meet the target. Clause 15 requires the UK Government and devolved administrations, along with 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.

 

6.2 Action for Children is concerned that Clause 15 could weaken the legislation and strategy development process. While child poverty is estimated to cost the UK at least £25 billion each year, the long-term improvement in the fiscal position which tackling child poverty would bring about is not mentioned. Our groundbreaking Backing the Future report reveals that the cost to the UK economy of continuing to address current levels of social problems will amount to almost £4 trillion over a 20 year period. This includes addressing problems such as crime, mental ill health, family breakdown, drug abuse and obesity.

 

6.3 Our findings revealed that, for every £1 invested annually in Action for Children's targeted services designed to catch problems early and prevent problems from reoccurring, society benefits by between £7.60 and £9.20. This social value can be generated, for example, through improved family relationships.

 

6.3 Backing the Future shows that a £191 billion 10-year investment programme in targeted interventions that work for our most vulnerable children alongside a £428 billion 20-year programme of investment in universal childcare and parental leave will deliver net savings of £486 billion over the next 20 years. This return to the UK economy is approximately five times the current annual budget for the whole of the NHS. Our report proposes funding this transition through a series of annual bond issues, based on delivering far-reaching social and economic benefits to society while also providing secure and stable investment products. If we follow this path by 2030 investment levels in children and families will have stabilised and the composition of government spending will have shifted from the current model focused on dealing with social problems to one tasked with preventing them.

 

6.4 There needs to be a cross-party commitment to invest in essential services to build the foundations of a society that is better and fairer for our families and communities, and where children can live happy and fulfilled lives.

 

 

Action for Children is a long-standing member of the Campaign to End Child Poverty.

 

October 2009