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Families living in poverty rises in UK PDF Print E-mail
Written by PA News   
Wednesday, 12 March 2008
The number of families living in extreme poverty has increased since Labour made its flagship pledge to halve child poverty this decade, according to figures highlighted by the Conservatives.

Some 1.8 million households were living on less than 40% of the median average national income in 2005/06 - 400,000 more than the 1.4 million recorded in 1998/99 - according to statistics from the Department for Work and Pensions.

The figures emerged as Chancellor Alistair Darling prepared to unveil a Budget which campaigners regard as his last chance to meet the target of halving child poverty by 2010.

Under the Government's measure, which records children living in households below 60% of average income, numbers of children in poverty have dropped by 600,000 from 3.4 million in 1998/99 to 2.8 million in 2005/06.

Campaigners say £4 billion of additional investment is needed to make the further 1.1 million reduction to hit the 2010 target, and Mr Darling is widely expected to announce increases to Working Tax Credit to help lift more children out of poverty.

But a Department for Work and Pensions document last month appeared to acknowledge that the goal was in jeopardy, stating that "despite effective policies these targets are unlikely to be fully met".

Shadow work and pensions secretary Chris Grayling today that the headline figures showing a reduction in child poverty masked a failure to make an impact on the UK's poorest households.

While numbers of children in households below 60% of average income have fallen since 1998/99, the proportion in extreme poverty - below the 40% level - has risen from 5% to 6%, he said.

He called on Mr Darling to end the so-called "couple penalty" in the tax credits system, which Conservatives argue gives parents a financial incentive to split.

A source close to Work and Pensions Secretary James Purnell accused the Conservatives of spinning the poverty statistics, saying that Mr Grayling was well aware that the 40% figures were not regarded as reliable and were not accepted by the independent Office for National Statistics.

Source: PA News


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