How Duncan Smith misled MPs on child poverty

The Work and Pensions Secretary claimed that "child poverty rose" under Labour; it fell by 800,000.

Iain Duncan Smith has acquired a reputation for playing fast and loose with the facts and he was up to his tricks again at Work and Pensions Questions in the Commons this afternoon. Towards the end of the session, he declared that "child poverty rose" under the last government. But as so often, the data tells a different story. Under Labour, child poverty fell from 3.4m in 1997 to 2.6m in 2010, a net reduction of 800,000 and the lowest figure since the mid-1980s.

While child poverty has fallen under the coalition to 2.3m (largely due to the overall drop in average household incomes, which resulted in a relatively higher poverty threshold), it is projected to rise by 600,000 by 2015-16 as the government's welfare cuts take full effect. As the IFS has noted, "Despite the impact of universal credit, the overall impact of reforms introduced since April 2010 is to increase the level of income poverty in each and every year from 2010 to 2020." The forecast rise will reverse all of the reductions that took place under Labour between 2000-01 and 2010-11. Rather than slandering the last government, Duncan Smith would do well to turn his attention to that.

Work and Pensions Secretary Iain Duncan Smith speaks at the Conservative conference in Manchester last month. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Why Theresa May won't exclude students from the net migration target

The Prime Minister believes the public would view the move as "a fix". 

In a letter to David Cameron shortly after the last general election, Philip Hammond demanded that students be excluded from the net migration target. The then foreign secretary, who was backed by George Osborne and Sajid Javid, wrote: "From a foreign policy point of view, Britain's role as a world class destination for international students is a highly significant element of our soft power offer. It's an issue that's consistently raised with me by our foreign counterparts." Universities and businesses have long argued that it is economically harmful to limit student numbers. But David Cameron, supported by Theresa May, refused to relent. 

Appearing before the Treasury select committee yesterday, Hammond reignited the issue. "As we approach the challenge of getting net migration figures down, it is in my view essential that we look at how we do this in a way that protects the vital interests of our economy," he said. He added that "It's not whether politicians think one thing or another, it's what the public believe and I think it would be useful to explore that quesrtion." A YouGov poll published earlier this year found that 57 per cent of the public support excluding students from the "tens of thousands" target.

Amber Rudd, the Home Secretary, has also pressured May to do so. But the Prime Minister not only rejected the proposal - she demanded a stricter regime. Rudd later announced in her conference speech that there would be "tougher rules for students on lower quality courses". 

The economic case for reform is that students aid growth. The political case is that it would make the net migration target (which has been missed for six years) easier to meet (long-term immigration for study was 164,000 in the most recent period). But in May's view, excluding students from the target would be regarded by the public as a "fix" and would harm the drive to reduce numbers. If an exemption is made for one group, others will inevitably demand similar treatment. 

Universities complain that their lobbying power has been reduced by the decision to transfer ministerial responsibility from the business department to education. Bill Rammell, the former higher education minister and the vice-chancellor of Bedfordshire, said in July: “We shouldn’t assume that Theresa May as prime minister will have the same restrictive view on overseas students that Theresa May the home secretary had”. Some Tory MPs hoped that the net migration target would be abolished altogether in a "Nixon goes to China" moment.

But rather than retreating, May has doubled-down. The Prime Minister regards permanently reduced migration as essential to her vision of a more ordered society. She believes the economic benefits of high immigration are both too negligible and too narrow. 

Her ambition is a forbidding one. Net migration has not been in the "tens of thousands" since 1997: when the EU had just 15 member states and the term "BRICS" had not even been coined. But as prime minister, May is determined to achieve what she could not as home secretary. 

George Eaton is political editor of the New Statesman.