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.
Photo: Getty
Show Hide image

Scotland's vast deficit remains an obstacle to independence

Though the country's financial position has improved, independence would still risk severe austerity. 

For the SNP, the annual Scottish public spending figures bring good and bad news. The good news, such as it is, is that Scotland's deficit fell by £1.3bn in 2016/17. The bad news is that it remains £13.3bn or 8.3 per cent of GDP – three times the UK figure of 2.4 per cent (£46.2bn) and vastly higher than the white paper's worst case scenario of £5.5bn. 

These figures, it's important to note, include Scotland's geographic share of North Sea oil and gas revenue. The "oil bonus" that the SNP once boasted of has withered since the collapse in commodity prices. Though revenue rose from £56m the previous year to £208m, this remains a fraction of the £8bn recorded in 2011/12. Total public sector revenue was £312 per person below the UK average, while expenditure was £1,437 higher. Though the SNP is playing down the figures as "a snapshot", the white paper unambiguously stated: "GERS [Government Expenditure and Revenue Scotland] is the authoritative publication on Scotland’s public finances". 

As before, Nicola Sturgeon has warned of the threat posed by Brexit to the Scottish economy. But the country's black hole means the risks of independence remain immense. As a new state, Scotland would be forced to pay a premium on its debt, resulting in an even greater fiscal gap. Were it to use the pound without permission, with no independent central bank and no lender of last resort, borrowing costs would rise still further. To offset a Greek-style crisis, Scotland would be forced to impose dramatic austerity. 

Sturgeon is undoubtedly right to warn of the risks of Brexit (particularly of the "hard" variety). But for a large number of Scots, this is merely cause to avoid the added turmoil of independence. Though eventual EU membership would benefit Scotland, its UK trade is worth four times as much as that with Europe. 

Of course, for a true nationalist, economics is irrelevant. Independence is a good in itself and sovereignty always trumps prosperity (a point on which Scottish nationalists align with English Brexiteers). But if Scotland is to ever depart the UK, the SNP will need to win over pragmatists, too. In that quest, Scotland's deficit remains a vast obstacle. 

George Eaton is political editor of the New Statesman.