Why Iain Duncan Smith is wrong on child poverty

Relegate the relative measure? Only if we want to pretend that poverty is something else altogether.

When is child poverty not child poverty? When it is measured using the relative poverty indicator if Iain Duncan Smith is to be believed today.

We use a range of different measures to assess poverty in the UK, but the one that we pay the most attention to, and that most often captures the headlines, is the relative poverty measure.

This indicator sets the poverty line for the UK at 60 per cent of the median household income (which is then adjusted to take into account a household’s composition and size). In other words, if a child lives in a household with an income less than 60 per cent of this national average, they are considered to be living in poverty.

This measure generates what look, at first glance, like counter-intuitive outcomes under some conditions. In 2010/11, for example, we witnessed declining average incomes in the UK but at the same time, a reduction in the numbers living in poverty. How, some have asked, can there be less poverty in a situation when we are all worse off?

The answer, of course, is simple. To achieve decreases in relative poverty in a period of declining median incomes such as now we have to protect the incomes of those at the bottom more robustly than those elsewhere in the distribution. It’s the right thing to do because children in these households are most vulnerable to further falls in income.

And this is exactly what the last government did. For example, as late as 2010 Labour introduced a disregard for child benefit in housing benefit and council tax benefit calculations. As a result, low income families were able to keep the whole of their child benefit payment, rather than watching it be offset against other forms of assistance.

In contrast, the coalition is cutting support for families left, right and centre. The value of working tax credit, child tax credit, child benefit and housing benefit have all been eroded in the last two years, with many more cuts to come. It is no surprise, then, that the Institute for Fiscal Studies projects that child poverty will begin to rise again from 2012/13.

Here, perhaps, lies the reason why Duncan Smith objects so vigorously to the relative poverty measure. As a minister expected to preside over the period when the thirteen-year downward trend in child poverty is predicted to turn back in the opposite direction, it may be no surprise that he is trying to change the yardstick against which the coalition will be measured.

No single indicator is perfect: all have strengths and weaknesses. But the great advantage of the relative measure is that it recognises that poverty goes far beyond existential basics, and instead is a question of being able to participate in the society within which we are situated. If children cannot enjoy the products, services and experiences which are the norm today, we should regard them as living in poverty.

That said, we all recognise the relative poverty measure does not capture all aspects of poverty and that other indicators provide useful information that can be read alongside. This is why the Child Poverty Act (CPA) 2010 requires the government track progress against three other key indicators: persistent poverty, material deprivation and absolute poverty. It is also why we concern ourselves with many other measures of child wellbeing in the UK. 

But the CPA goes further. Not only does it require us to measure progress against indicators other than relative poverty, it also demands that the government develop a child poverty strategy that addresses a host of ‘drivers’ beyond financial support. So rather than skew policy priorities towards welfare payments as suggested, the CPA actively requires government to consider parental employment, parenting skills, physical and mental health, education, childcare, social services, housing and social inclusion as part of its programme of action to address child poverty.

To claim, then, that the relative measure doesn’t tell us anything about the lived experience of poverty is nonsense.  And to suggest it is driving the wrong kind of policy to the exclusion of other areas is a misunderstanding of the CPA and the requirements on the strategy for which Duncan Smith is responsible.

Let’s supplement the measure by all means. Let’s explore the interesting relationships between income poverty and a range of other indicators. But relegate the relative measure? Only if we want to pretend that poverty is something else altogether.

Work and Pensions Secretary Iain Duncan Smith arrives for a Cabinet meeting at 10 Downing Street in London. Photograph: Getty Images.

Lindsay Judge is senior policy and research officer for the Child Poverty Action Group.

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Senior Labour and Liberal Democrat politicians call for a progressive alliance

As Brexit gets underway, opposition grandees urge their parties – Labour, Lib Dems, the SNP and Greens – to form a pact.

A number of senior Labour and opposition politicians are calling for a cross-party alliance. In a bid to hold the Conservative government to account as Brexit negotiations kick off, party grandees are urging their leaders to put party politics to one side and work together.

The former Labour minister Chris Mullin believes that “the only way forward” is “an eventual pact between Labour, the Liberal Democrats and the Greens not to oppose each other in marginal seats”. 

 “Given the loss of Scotland,it will be difficult for any party that is not the Conservative party to form a government on its own in the foreseeable future," Mullin argues, but he admits, “no doubt tribalists on both sides will find this upsetting” and laments that, “it may take three or four election defeats for the penny to drop”.

But there are other Labour and Liberal grandees who are envisaging such a future for Britain’s progressive parties.

The Lib Dem peer and former party leader Ming Campbell predicts that “there could be some pressure” after the 2020 election for Labour MPs to look at “SDP Mark II”, and reveals, “a real sense among the left and the centre-left that the only way Conservative hegemony is going to be undermined is for a far higher degree of cooperation”.

The Gang of Four’s David Owen, a former Labour foreign secretary who co-founded the SDP, warns Labour that it must “face up to reality” and “proudly and completely coherently” agree to work with the SNP.

“It is perfectly legitimate for the Labour party to work with them,” he tells me. “We have to live with that reality. You have to be ready to talk to them. You won’t agree with them on separation but you can agree on many other areas, or you certainly should be trying.”

The Labour peer and former home secretary Charles Clarke agrees that Labour must “open up an alliance with the SNP” on fighting for Britain to remain in the single market, calling it “an opportunity that’s just opened”. He criticises his party for having “completely failed to deal with how we relate to the SNP” during the 2015 election campaign, saying, “Ed Miliband completely messed that up”.

“The SNP will still be a big factor after the 2020 general election,” Clarke says. “Therefore we have to find a way to deal with them if we’re interested in being in power after the election.”

Clarke also advises his party to make pacts with the Lib Dems ahead of the election in individual constituencies in the southwest up to London.

“We should help the Lib Dems to win some of those seats, a dozen of those seats back from the Tories,” he argues. “I think a seat-by-seat examination in certain seats which would weaken the Tory position is worth thinking about. There are a few seats where us not running – or being broadly supportive of the Lib Dems – might reduce the number of Tory seats.”

The peer and former Lib Dem leader Paddy Ashdown agrees that such cooperation could help reduce the Tory majority. When leader, he worked informally in the Nineties with then opposition leader Tony Blair to coordinate their challenge to the Conservative government.

“We’re quite like we were in 1992 when Tony Blair and I started working together but with bells on,” Ashdown tells me. “We have to do something quite similar to what Blair and I did, we have to create the mood of a sort of space, where people of an intelligent focus can gather – I think this is going to be done much more organically than organisationally.”

Ashdown describes methods of cooperation, including the cross-party Cook-Maclennan Agreement on constitutional reform, uniting on Scottish devolution, a coordinated approach to PMQs, and publishing 50 seats in the Daily Mirror before the 1997 election, outlining seats where Labour and Lib Dem voters should tactically vote for one another to defeat Tory candidates.

“We created the climate of an expectation of cooperation,” Ashdown recalls. Pursuing the spirit of this time, he has set up a movement called More United, which urges cross-party support of candidates and campaigns that subscribe to progressive values.

He reveals that that “Tory Central Office are pretty hostile to the idea, Mr Corbyn is pretty hostile to the idea”, but there are Conservative and Labour MPs who are “talking about participating in the process”.

Indeed, my colleague George reveals in his report for the magazine this week that a close ally of George Osborne has approached the Lib Dem leader Tim Farron about forming a new centrist party called “The Democrats”. It’s an idea that the former chancellor had reportedly already pitched to Labour MPs.

Labour peer and former cabinet minister Tessa Jowell says this is “the moment” to “build a different kind of progressive activism and progressive alliance”, as people are engaging in movements more than parties. But she says politicians should be “wary of reaching out for what is too easily defined as an elite metropolitan solution which can also be seen as simply another power grab”.

She warns against a “We’re going to have a new party, here’s the board, here’s the doorplate, and now you’re invited to join” approach. “Talk of a new party is for the birds without reach and without groundedness – and we have no evidence of that at the moment.”

A senior politician who wished not to be named echoes Jowell’s caution. “The problem is that if you’re surrounded by a group of people who think that greater cooperation is necessary and possible – people who all think the same as you – then there’s a terrible temptation to think that everyone thinks the same as you,” they say.

They warn against looking back at the “halcyon days” of Blair’s cooperation with the Lib Dems. “It’s worth remembering they fell out eventually! Most political marriages end in divorce, don’t they?”

Anoosh Chakelian is senior writer at the New Statesman.