Coalition should "come clean" on child poverty

Even the government doesn't think it can meet its own targets. A new plan is needed.

In his first speech as the government's child poverty adviser, Alan Milburn today told the coalition to "come clean" on the impossibility of meeting the poverty reduction targets enshrined in the 2010 Child Poverty Act. The challenge of reducing child poverty to less than 10 per cent by 2020 has been laid bare by analysis revealing the heavy work done by tax credits in raising family incomes above the poverty line over the last 15 years. Work did not do enough: parental employment rates rose considerably over this period but low wages limited the contribution of paid work to reducing family poverty.

This is now the central challenge for the child poverty agenda: how to reduce poverty when the only tool that been shown to be effective -- more generous cash transfers -- is no longer available on any meaningful scale. The task is made harder by analysis highlighting the contribution that women's paid work has made to rising family incomes over the last few decades. This source of income is likely to diminish as public sector jobs are lost and support for childcare is reduced for some families. As a result, the Institute for Fiscal Studies has stated that it's "almost incredible" that the child poverty targets can be met as they stand.

So Alan Milburn is right to challenge both the coalition and Labour to get real about child poverty. The Chancellor's Autumn Statement, featuring cuts to tax credits that will push 100,000 more children into poverty, implicitly confirmed that the government doesn't think it can meet its own targets either. But officially the coalition remains committed to the 2010 Act, so it needs to say where it will focus its efforts. Milburn makes a strong case for prioritising the under fives, ensuring that no child is born into poverty. If we cannot afford to lift all children out of poverty, concentrating on the youngest gives them the best chance to flourish later in life.

The importance of raising incomes in poor families is obvious, but families also need good quality services to give children the best start. There is no "either/or" deal here. Milburn's call for the coalition to set out a long-term plan to deliver free childcare for all families is right. IPPR research shows that universal childcare could pay for itself over the medium-term once the extra taxes paid by working parents are taken into account, while the extra earnings would help lift many families out of poverty. A mechanism for enabling childcare spend to contribute towards the child poverty targets would drive a duel strategy of investment in incomes and services. In the longer term, labour market reforms that support higher wages for parents would take some of the burden off the benefits system.

The public's ambiguous support for ending child poverty demonstrates the failure of this agenda to resonate with families. Milburn's broader plea to locate the child poverty debate in a wider discussion of economic security is spot on. Few families are continually stuck in deep poverty, but many move in and out of poverty as short-term jobs come to an end or families grow. Free childcare, flexible working opportunities, decent wages and job security matter for most low-to-mid income families, not just the poorest.

Kayte Lawton is a senior research fellow at the IPPR

Kayte Lawton is senior research fellow at IPPR.

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The Fire Brigades Union reaffiliates to Labour - what does it mean?

Any union rejoining Labour will be welcomed by most in the party - but the impact on the party's internal politics will be smaller than you think.

The Fire Brigades Union (FBU) has voted to reaffiliate to the Labour party, in what is seen as a boost to Jeremy Corbyn. What does it mean for Labour’s internal politics?

Firstly, technically, the FBU has never affliated before as they are notionally part of the civil service - however, following the firefighters' strike in 2004, they decisively broke with Labour.

The main impact will be felt on the floor of Labour party conference. Although the FBU’s membership – at around 38,000 – is too small to have a material effect on the outcome of votes themselves, it will change the tenor of the motions put before party conference.

The FBU’s leadership is not only to the left of most unions in the Trades Union Congress (TUC), it is more inclined to bring motions relating to foreign affairs than other unions with similar politics (it is more internationalist in focus than, say, the PCS, another union that may affiliate due to Corbyn’s leadership). Motions on Israel/Palestine, the nuclear deterrent, and other issues, will find more support from FBU delegates than it has from other affiliated trade unions.

In terms of the balance of power between the affiliated unions themselves, the FBU’s re-entry into Labour politics is unlikely to be much of a gamechanger. Trade union positions, elected by trade union delegates at conference, are unlikely to be moved leftwards by the reaffiliation of the FBU. Unite, the GMB, Unison and Usdaw are all large enough to all-but-guarantee themselves a seat around the NEC. Community, a small centrist union, has already lost its place on the NEC in favour of the bakers’ union, which is more aligned to Tom Watson than Jeremy Corbyn.

Matt Wrack, the FBU’s General Secretary, will be a genuine ally to Corbyn and John McDonnell. Len McCluskey and Dave Prentis were both bounced into endorsing Corbyn by their executives and did so less than wholeheartedly. Tim Roache, the newly-elected General Secretary of the GMB, has publicly supported Corbyn but is seen as a more moderate voice at the TUC. Only Dave Ward of the Communication Workers’ Union, who lent staff and resources to both Corbyn’s campaign team and to the parliamentary staff of Corbyn and McDonnell, is truly on side.

The impact of reaffiliation may be felt more keenly in local parties. The FBU’s membership looks small in real terms compared Unite and Unison have memberships of over a million, while the GMB and Usdaw are around the half-a-million mark, but is much more impressive when you consider that there are just 48,000 firefighters in Britain. This may make them more likely to participate in internal elections than other affiliated trade unionists, just 60,000 of whom voted in the Labour leadership election in 2015. However, it is worth noting that it is statistically unlikely most firefighters are Corbynites - those that are will mostly have already joined themselves. The affiliation, while a morale boost for many in the Labour party, is unlikely to prove as significant to the direction of the party as the outcome of Unison’s general secretary election or the struggle for power at the top of Unite in 2018. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.