IFS warns the government will miss its 2020 child poverty targets
A report has been released by the Institute for Fiscal Studies (IFS) which highlights the effect of falling incomes. It is predicted that the fall in median income will be the biggest in 35 years and as a consequence, will result in huge rises in poverty for children and adults over the next decade.
The report, funded by the Joseph Rowntree Foundation, forecasts that the next two years will be “dominated by a large decline” in incomes leading to 3.1 million children living in absolute poverty by 2013. In addition, by 2020 3.3 million young people – almost one in four children – will find themselves in relative child poverty. This is a shocking 2 million short of the governments legally binding 2020 child poverty targets.
The IFS warns: “Absolute and relative child poverty are forecast to be 23% and 24% in 2020–21 respectively. These compare with the targets of 5% and 10%, set out in the Child Poverty Act (2010)”.
A child is considered to be living in relative poverty if the household income is less than 60% of the average in that year. If the household income is below 60% of the 2010/11 average – a standard set out in this year’s Child Poverty Act – they are classed as living in absolute poverty.
The IFS warns that even though the coalition’s welfare reforms will
“act to reduce both absolute and relative poverty” the effect will be swamped by the decline in average incomes, with these expected to fall by 7% in real terms.
Campaigners have described the report as “devastating”, saying ministers are in denial about poverty. Child Poverty Action Group chief executive, Alison Garnham, said: “This devastating report leaves the government’s child poverty and social mobility strategies in jeopardy.
“Ministers seem to be in denial that, under current policies, their legacy threatens to be the worst poverty record of any government for a generation.”
For a criticism of the IFS report and statistics, click here
Website: The Guardian
Amanda Frewin
Research & Project Support
