4Children gave a cautious welcome today to the impact on child poverty rates of the Chancellor’s 2008 Budget. Whilst welcoming the prominence of measures related to cutting child poverty, and the clear indications that the fight against poverty is central to the Government’s agenda, the charity has raised concern over the prospects of the Government meeting its own fast-approaching deadline.

The Chancellor announced an overall investment of under a third of the £3.4 billion needed to deliver a halving of child poverty capable of meeting the 2010 target.

Anne Longfield OBE, 4Children Chief Executive said:

“Whilst we face a period of economic uncertainty no area of policy is more crucial for children, families and wider society than lifting children out of the poverty trap. Targets and Government benchmarks are often perceived to exist only on paper but the human impact of this target cannot be underestimated – 2.8 million children in this country are relying on investment being made from the Chancellor if they are going to escape a childhood spent growing up in poverty. For these children, growing up in poverty means stifled potential at school, limited skills opportunities and a greater probability of ill-health.

But the costs of failing to invest will be felt more widely than that – 4Children calculates that increased spending on health, benefits and corrective services later in life for children who grow up in poverty, as well as reduced labour potential, costs the economy ten times the cost of investment needed to meet the 2010 poverty target. Ending child poverty is an investment the Government cannot afford to miss."

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The Chancellor today announced measures including:

· Increasing the child element of the Child Tax Credit by £50 a year above indexation from April 2009

· Increasing the first child rate of Child Benefit to £20 a week from April 2009

· Action with energy companies and Ofgem to help vulnerable groups deal with rising energy prices, including the 5 million customers using pre-pay options

4Children recommends investment in the following urgent measures to meet the 2010 target:

 *Raise incomes through child benefits and child tax credits – increase Working Tax Credits by a third to £91.31 a week, or £4,748 a year, raise Child Tax Credit by £8 a week, and introduce a Personal Tax Credit Allowance to let people earn up to £100 per week before they start losing their tax credits.

*Good quality childcare, free at the point of use, must be made available for all parents in every community as a part of enabling work

*Investment in employability: Lifelong learning and adult education to promote employability of adults who are workless.

*Increased investment in programs like the New Deal for Lone Parents. However, this must be supported by other measures to help parents returning to work, including mentoring and advice on rights to flexible working to support transition back into employment.



EDITORS NOTES

· For further information contact Julie Watkins on 020 7522 6928 / 07917 870641 / Julie.watkins@4Children.org.uk

4Children
4Children is the national charity dedicated to creating opportunities and building futures for all children. It aspires to ensure that all children, young people and families have access to a creative, safe and child focused environment, and activities. 4Children provides an information line for parents and childcare professionals with advice and support on all aspects of childcare, including details of out of school clubs in your area: 020 7512 2100. For more information see: www.4Children.org.uk

For further information on 4Children’s Vulnerable Children Strategy, Mind the Gap, please click here

Campaign to End Child Poverty
4Children is one of over 100 member organisations of the Campaign to End Child Poverty, campaigning for public and political commitment to ensure the goals of halving child poverty by 2010 and ending child poverty by 2020 are met.

For further information contact Julie Watkins on 0207 522 6928 / 07917870641

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KEY FACTS RELATING TO LEVELS OF CHILD POVERTY:

*Currently there are 2.8 million children in poverty measured before housing costs and 3.8 million children in poverty after housing costs

*Since the baseline year for the government’s target, child poverty has fallen by 600,000

*The latest figures, for 2005/6 showed that child poverty had fallen to 2.8 million, or 22%

*The target for 2010/1 is to reach 1.7 million children in poverty, or 13%. This would entail a reduction of 1.1 million children living in poverty

*Poverty has many human costs. Children from poorer backgrounds are less likely to do well at school: children of parents in professional or managerial occupations are more than twice as likely to gain five good GCSEs as children from manual working class families.

*Poverty also has stark health implications. A boy in born Manchester can expect to live seven years less than a boy from Barnet, North London because of poverty-related health differences. Similarly, a girl born in Manchester can expect to live six years less than a girl born in Chelsea.

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