Monday, July 02, 2007
Fighting poverty
I have to admit that I was originally drawn to this article in today's Guardian by the sub-heading stating that 'David Cameron doesn't exactly come across as Roosevelt. More Paris Hilton.' However, it does contain an interesting high level analysis of the challenges facing the new Chancellor of the Exchequer.
Larry Elliott argues that the Tories are not interested in targetting Alistair Darling. Their objective, he says, is to do a demolition job on Gordon Brown. He may have ceased to run the Treasury but he will still be held to account for the economy. Mr. Elliott points out that even in his last few months in the job, the new prime minister took decisions on tax and spending that will tie the hands of his successor.
There is a lot of discussion about vital economic growth, however although this will be the key to building a successful economy, there is no mention of the other challenge facing the new Chancellor, the fight to eradicate child poverty.
A new report by think-tank the New Policy Institute published today reports that Wales is still a “low-pay economy” and calls for a wider strategy to address poverty at all ages. Wales’s child poverty rate has fallen from 36% in the late 1990s, they say, but it has not moved from 28% since 2004/05:
The report’s co-author Peter Kenway said, “A single year’s figures must always be treated with caution and next year may show them to have been a blip.
“But with unemployment and worklessness no longer falling and no sign that tax credits are to be increased substantially, it is hard to see where the impetus for further progress on poverty will come from.”
The report classes poverty as those with an income less than 60% of the national average. It warns that children raised in households with so little income face future disadvantage and a cycle of on-going poverty.
“Wales stands out within the UK for its high rates of working-age sickness and disability,” Mr Kenway added.
“Given how many children are disadvantaged by this, the new Assembly Government should take the lead in developing a comprehensive anti-poverty strategy that includes working-age adults as well as pensioners and children.”
Mr. Kenway is absolutely right in the role that the Assembly Government must play in tackling this problem, however it still remains the case that many of the root causes of poverty need to be addressed at a UK level and are beyond the Assembly’s power.
A review of taxation, benefit and incapacity payments are needed as well as an increase and simplification of tax credit payments. In my view the present structure of benefits and disability payments can offer a clear disincentive to claimants from seeking work.
The Assembly can do some things. We can put better training in place, provide childcare and support and use Objective One convergence funding to create job opportunities, but the biggest driver on this issue is the UK government and that is why it must be a priority for the new Chancellor of the Exchequer.
Larry Elliott argues that the Tories are not interested in targetting Alistair Darling. Their objective, he says, is to do a demolition job on Gordon Brown. He may have ceased to run the Treasury but he will still be held to account for the economy. Mr. Elliott points out that even in his last few months in the job, the new prime minister took decisions on tax and spending that will tie the hands of his successor.
There is a lot of discussion about vital economic growth, however although this will be the key to building a successful economy, there is no mention of the other challenge facing the new Chancellor, the fight to eradicate child poverty.
A new report by think-tank the New Policy Institute published today reports that Wales is still a “low-pay economy” and calls for a wider strategy to address poverty at all ages. Wales’s child poverty rate has fallen from 36% in the late 1990s, they say, but it has not moved from 28% since 2004/05:
The report’s co-author Peter Kenway said, “A single year’s figures must always be treated with caution and next year may show them to have been a blip.
“But with unemployment and worklessness no longer falling and no sign that tax credits are to be increased substantially, it is hard to see where the impetus for further progress on poverty will come from.”
The report classes poverty as those with an income less than 60% of the national average. It warns that children raised in households with so little income face future disadvantage and a cycle of on-going poverty.
“Wales stands out within the UK for its high rates of working-age sickness and disability,” Mr Kenway added.
“Given how many children are disadvantaged by this, the new Assembly Government should take the lead in developing a comprehensive anti-poverty strategy that includes working-age adults as well as pensioners and children.”
Mr. Kenway is absolutely right in the role that the Assembly Government must play in tackling this problem, however it still remains the case that many of the root causes of poverty need to be addressed at a UK level and are beyond the Assembly’s power.
A review of taxation, benefit and incapacity payments are needed as well as an increase and simplification of tax credit payments. In my view the present structure of benefits and disability payments can offer a clear disincentive to claimants from seeking work.
The Assembly can do some things. We can put better training in place, provide childcare and support and use Objective One convergence funding to create job opportunities, but the biggest driver on this issue is the UK government and that is why it must be a priority for the new Chancellor of the Exchequer.
