Moving the goal posts won't hide the coalition's failure on child poverty

Iain Duncan Smith's plan to change the way child poverty is measured is a distraction.

The consultation on child poverty measurement announced by Iain Duncan Smith today is generating exasperated groans from those who have been engaged with the subject for decades.

It is not as if we haven’t been here before. The last extensive consultation ended in 2003 but the indicators have continued to be refined since then. The portfolio of measures that eventually became the targets in the Child Poverty Act 2010 were developed through a discussion between government and social scientists over many decades after the publication of Abel Smith and Townsend’s "rediscovery of poverty" book The Poor and the Poorest in 1965.

And the measures we now have are very good, arguably the best of any country in the world.  They encompass understandings of poverty as relative, absolute (actually constant), deprivation, overlaps of income and deprivation, and persistence. They have been adopted by international organisations such as the EU, OECD and UNICEF, and copied by other governments. Of course they are not perfect. It would be good to add an indicator of how deep poverty is (poverty gap). But do we really need a consultation to add new measures?

Without any fuss the government have already added a new severe measure of poverty – less than 50 per cent of the median and materially deprived – following the Frank Field review. The Child Poverty Strategy published in 2011 proposed a sensible list of ten indicators (additional to the five Child Poverty Act indicators) that they would use to monitor progress. Or the government could go further and revert to the list of 24 child indicators that DWP published in the Opportunity for All series between 1999 and 2007 covering poverty, health, education, housing and child protection.

There is no dearth of indicators; what we lack are policies that will continue to drive the figures downwards after a decade when 1.1 million children were lifted out of poverty. Instead, we have a consultation that is seeking to develop a "multidimensional indicator" of child poverty, relegating income – and especially the relative income measure – in the process.

Some people have never liked the relative poverty measure because it is a measure of inequality. Before Iain Duncan Smith, Conservative social security secretary John Moore, attempted to do away with it in the 1980s. Ministers now try to ridicule the relative measure because it showed a fall in child poverty in 2010-11, partly driven by a fall in median income. But that is why we have a portfolio of measures.

It is a national tragedy that after a decade of progress that has seen child poverty and child well-being improving, from a pretty low base, the coalition’s policies have sent it into reverse. Moving, adding or blending the goal posts will not hide this fact.

Jonathan Bradshaw is a Professor of Social Policy at the University of York and a trustee of the Child Poverty Action Group

Work and Pensions Secretary Iain Duncan Smith speaks at last month's Conservative conference in Birmingham. Photograph: Getty Images.
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The tale of Battersea power station shows how affordable housing is lost

Initially, the developers promised 636 affordable homes. Now, they have reduced the number to 386. 

It’s the most predictable trick in the big book of property development. A developer signs an agreement with a local council promising to provide a barely acceptable level of barely affordable housing, then slashes these commitments at the first, second and third signs of trouble. It’s happened all over the country, from Hastings to Cumbria. But it happens most often in London, and most recently of all at Battersea power station, the Thames landmark and long-time London ruin which I wrote about in my 2016 book, Up In Smoke: The Failed Dreams of Battersea Power Station. For decades, the power station was one of London’s most popular buildings but now it represents some of the most depressing aspects of the capital’s attempts at regeneration. Almost in shame, the building itself has started to disappear from view behind a curtain of ugly gold-and-glass apartments aimed squarely at the international rich. The Battersea power station development is costing around £9bn. There will be around 4,200 flats, an office for Apple and a new Tube station. But only 386 of the new flats will be considered affordable

What makes the Battersea power station development worse is the developer’s argument for why there are so few affordable homes, which runs something like this. The bottom is falling out of the luxury homes market because too many are being built, which means developers can no longer afford to build the sort of homes that people actually want. It’s yet another sign of the failure of the housing market to provide what is most needed. But it also highlights the delusion of politicians who still seem to believe that property developers are going to provide the answers to one of the most pressing problems in politics.

A Malaysian consortium acquired the power station in 2012 and initially promised to build 517 affordable units, which then rose to 636. This was pretty meagre, but with four developers having already failed to develop the site, it was enough to satisfy Wandsworth council. By the time I wrote Up In Smoke, this had been reduced back to 565 units – around 15 per cent of the total number of new flats. Now the developers want to build only 386 affordable homes – around 9 per cent of the final residential offering, which includes expensive flats bought by the likes of Sting and Bear Grylls. 

The developers say this is because of escalating costs and the technical challenges of restoring the power station – but it’s also the case that the entire Nine Elms area between Battersea and Vauxhall is experiencing a glut of similar property, which is driving down prices. They want to focus instead on paying for the new Northern Line extension that joins the power station to Kennington. The slashing of affordable housing can be done without need for a new planning application or public consultation by using a “deed of variation”. It also means Mayor Sadiq Khan can’t do much more than write to Wandsworth urging the council to reject the new scheme. There’s little chance of that. Conservative Wandsworth has been committed to a developer-led solution to the power station for three decades and in that time has perfected the art of rolling over, despite several excruciating, and occasionally hilarious, disappointments.

The Battersea power station situation also highlights the sophistry developers will use to excuse any decision. When I interviewed Rob Tincknell, the developer’s chief executive, in 2014, he boasted it was the developer’s commitment to paying for the Northern Line extension (NLE) that was allowing the already limited amount of affordable housing to be built in the first place. Without the NLE, he insisted, they would never be able to build this number of affordable units. “The important point to note is that the NLE project allows the development density in the district of Nine Elms to nearly double,” he said. “Therefore, without the NLE the density at Battersea would be about half and even if there was a higher level of affordable, say 30 per cent, it would be a percentage of a lower figure and therefore the city wouldn’t get any more affordable than they do now.”

Now the argument is reversed. Because the developer has to pay for the transport infrastructure, they can’t afford to build as much affordable housing. Smart hey?

It’s not entirely hopeless. Wandsworth may yet reject the plan, while the developers say they hope to restore the missing 250 units at the end of the build.

But I wouldn’t hold your breath.

This is a version of a blog post which originally appeared here.

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