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| Cameron's 'assault on poverty' pledge belied by new figures | |
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| David Cameron’s promise during his address to the Conservative party conference that “an all-out assault on poverty” would be at the centre of his second term is undermined by a report that reveals planned welfare cuts will lead to an increase of 200,000 working households living in poverty by 2020. | David Cameron’s promise during his address to the Conservative party conference that “an all-out assault on poverty” would be at the centre of his second term is undermined by a report that reveals planned welfare cuts will lead to an increase of 200,000 working households living in poverty by 2020. |
| The findings, published on Thursday by the Resolution Foundation, appear to contradict the prime minister’s vow to devote the second five years of his premiership to creating a “Greater Britain” marked by social reform, real equality and less racial discrimination. | The findings, published on Thursday by the Resolution Foundation, appear to contradict the prime minister’s vow to devote the second five years of his premiership to creating a “Greater Britain” marked by social reform, real equality and less racial discrimination. |
| In a speech that was clearly designed to respond to Jeremy Corbyn’s election as Labour leader, Cameron sought to position his party as the dominant force on the centre ground of politics. The prime minister argued the best way to tackle the deep roots of poverty lay in getting people into better paid work. | In a speech that was clearly designed to respond to Jeremy Corbyn’s election as Labour leader, Cameron sought to position his party as the dominant force on the centre ground of politics. The prime minister argued the best way to tackle the deep roots of poverty lay in getting people into better paid work. |
| The Conservatives, Cameron said, must live up to their great traditions of social reform and be the right party “for those who work hard, want to get on and want more money at the end of the month”. Insisting Britain was on the brink of something special, he claimed “hope is returning and we are moving into the light”, allowing the Conservatives to be seen as the “party of the fair chance, the party of the equal shot”. | The Conservatives, Cameron said, must live up to their great traditions of social reform and be the right party “for those who work hard, want to get on and want more money at the end of the month”. Insisting Britain was on the brink of something special, he claimed “hope is returning and we are moving into the light”, allowing the Conservatives to be seen as the “party of the fair chance, the party of the equal shot”. |
| But the new research by the Resolution Foundation – now chaired by former Conservative minister David Willetts – suggests the government’s welfare cuts introduced in the budget in a bid to cut the deficit will drive at least 200,000 working households into poverty under a definition that the government is abolishing. | But the new research by the Resolution Foundation – now chaired by former Conservative minister David Willetts – suggests the government’s welfare cuts introduced in the budget in a bid to cut the deficit will drive at least 200,000 working households into poverty under a definition that the government is abolishing. |
| Related: Tory development successes undermined by 'aidwashing' and dirty tactics | Jonathan Glennie | Related: Tory development successes undermined by 'aidwashing' and dirty tactics | Jonathan Glennie |
| The thinktank’s analysis also indicates that the number of all households – both in and out of work – that will be in poverty at the end of the parliament is projected to rise by 700,000 to nearly 4 million. | The thinktank’s analysis also indicates that the number of all households – both in and out of work – that will be in poverty at the end of the parliament is projected to rise by 700,000 to nearly 4 million. |
| The report will pile further pressure on ministers to rethink how they protect the working poor, following the introduction of controversial plans to cut tax credits in the first budget immediately after the election. | The report will pile further pressure on ministers to rethink how they protect the working poor, following the introduction of controversial plans to cut tax credits in the first budget immediately after the election. |
| Conservative MPs are already braced for protests next April when the cuts to tax credit thresholds, set out in the summer budget, start to bite. There are reports that Treasury ministers are considering delaying sending out letters spelling out the details of the cuts until after Christmas. | Conservative MPs are already braced for protests next April when the cuts to tax credit thresholds, set out in the summer budget, start to bite. There are reports that Treasury ministers are considering delaying sending out letters spelling out the details of the cuts until after Christmas. |
| As part of the tax credit reforms ministers are abolishing the long-standing child poverty target that measures the number of children living in households with an income lower than 60% of median household income. | As part of the tax credit reforms ministers are abolishing the long-standing child poverty target that measures the number of children living in households with an income lower than 60% of median household income. |
| The research compiled by the Resolution Foundation shows that under this definition 100,000 working households will fall into poverty next year alone as a result of the summer budget. The calculations take into account planned rises in the national minimum wage towards £9 an hour by the end of the parliament. | The research compiled by the Resolution Foundation shows that under this definition 100,000 working households will fall into poverty next year alone as a result of the summer budget. The calculations take into account planned rises in the national minimum wage towards £9 an hour by the end of the parliament. |
| Willetts has also been pressing ministers to rethink the tax credit cuts due to the damaging impact on the working poor. | Willetts has also been pressing ministers to rethink the tax credit cuts due to the damaging impact on the working poor. |
| In its key findings the report also estimated that: | In its key findings the report also estimated that: |
| • A further 200,000 children (predominantly from working households) will fall into poverty in 2016 simply as a result of the tax and benefit measures announced at the summer budget, including the increases in the national minimum wage. | • A further 200,000 children (predominantly from working households) will fall into poverty in 2016 simply as a result of the tax and benefit measures announced at the summer budget, including the increases in the national minimum wage. |
| • The total number of working households in poverty will have reached 2 million in 2020. | • The total number of working households in poverty will have reached 2 million in 2020. |
| • The summer budget measures will lead to income falls of more than 4% in the bottom fifth of earners, contrasting with income rises of 4% for the top third. | • The summer budget measures will lead to income falls of more than 4% in the bottom fifth of earners, contrasting with income rises of 4% for the top third. |
| • The number of children in poverty in working and non-working households is estimated to reach up to 3.9 million by 2020. This is 1.2 million higher than the 2016-17 baseline and 600,000 higher than was projected for 2020 prior to the budget. | • The number of children in poverty in working and non-working households is estimated to reach up to 3.9 million by 2020. This is 1.2 million higher than the 2016-17 baseline and 600,000 higher than was projected for 2020 prior to the budget. |
| Cameron made no direct mention of George Osborne’s controversial plans to cut tax credits, which will mean a loss of £1,000 for 3 million of the lowest-paid workers. | Cameron made no direct mention of George Osborne’s controversial plans to cut tax credits, which will mean a loss of £1,000 for 3 million of the lowest-paid workers. |
| But he said he would seek to tackle the “scourge of poverty”, which is best achieved by helping people back into work where the new “national living wage” will mark a “giant leap forward”. | But he said he would seek to tackle the “scourge of poverty”, which is best achieved by helping people back into work where the new “national living wage” will mark a “giant leap forward”. |
| The prime minister’s aides positioned his conference speech as a pillar of the optimistic narrative put forward by the Conservatives in the wake of Corbyn’s election as they strive to emphasise the need for “social reform”. | The prime minister’s aides positioned his conference speech as a pillar of the optimistic narrative put forward by the Conservatives in the wake of Corbyn’s election as they strive to emphasise the need for “social reform”. |
| Related: Hunt: tax credit cuts will make Britons work like Chinese or Americans | Related: Hunt: tax credit cuts will make Britons work like Chinese or Americans |
| “You can’t have true opportunity without real equality,” said the prime minister, citing examples of black and minority ethnic Britons denied opportunities. | “You can’t have true opportunity without real equality,” said the prime minister, citing examples of black and minority ethnic Britons denied opportunities. |
| “And I want our party to get this right. Yes us – the party of the fair chance, the party of the equal shot, the party that doesn’t care where you come from, but only where you’re going. Us, the Conservatives, I want us to end discrimination and finish the fight for real equality in our country today.” | “And I want our party to get this right. Yes us – the party of the fair chance, the party of the equal shot, the party that doesn’t care where you come from, but only where you’re going. Us, the Conservatives, I want us to end discrimination and finish the fight for real equality in our country today.” |
| Cameron, who knows he has been defined largely by his privileged background, said he recognised that the reality that someone’s salary depended on what their father’s was was more prevalent in the UK than in any other country in the developed world. “I’m sorry, but for us Conservatives, the party of aspiration, we cannot accept that,” he said. | Cameron, who knows he has been defined largely by his privileged background, said he recognised that the reality that someone’s salary depended on what their father’s was was more prevalent in the UK than in any other country in the developed world. “I’m sorry, but for us Conservatives, the party of aspiration, we cannot accept that,” he said. |
| In a speech that frequently attacked Labour, Cameron said: “Labour: you’re not for working people, but hurting people. | In a speech that frequently attacked Labour, Cameron said: “Labour: you’re not for working people, but hurting people. |
| “If you want a lecture about poverty, ask Labour. If you want something done about it, come to us, the Conservatives. There’s another argument we need to win.” | “If you want a lecture about poverty, ask Labour. If you want something done about it, come to us, the Conservatives. There’s another argument we need to win.” |