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Duncan Smith to outline plans to change poverty measure | Duncan Smith to outline plans to change poverty measure |
(31 minutes later) | |
Plans to change the definition of child poverty from one based on the average income to a broader set of criteria are to be outlined by the government later. | Plans to change the definition of child poverty from one based on the average income to a broader set of criteria are to be outlined by the government later. |
Work and Pensions Secretary Iain Duncan Smith wants to consult on replacing the current measure, which he says wrongly led Labour to increase state help. | Work and Pensions Secretary Iain Duncan Smith wants to consult on replacing the current measure, which he says wrongly led Labour to increase state help. |
Labour accused the government of abandoning families to poverty. | Labour accused the government of abandoning families to poverty. |
It comes ahead of figures expected to show the last government did not meet a target to halve child poverty by 2010. | It comes ahead of figures expected to show the last government did not meet a target to halve child poverty by 2010. |
The Child Poverty Act, binding UK governments to eradicate child poverty by 2020, counts children living in households with an income less than 60% of the median. | The Child Poverty Act, binding UK governments to eradicate child poverty by 2020, counts children living in households with an income less than 60% of the median. |
The current government, however, believes the measure of poverty is too narrow and can be perverse because, if average incomes fall, the poverty line falls too. | The current government, however, believes the measure of poverty is too narrow and can be perverse because, if average incomes fall, the poverty line falls too. |
Ministers want to widen the definition to include criteria such as long-term worklessness and drug dependency. | Ministers want to widen the definition to include criteria such as long-term worklessness and drug dependency. |
'Not about income alone' | 'Not about income alone' |
In a speech in Westminster on Thursday, Mr Duncan Smith will announce that a green paper consultation on how best to measure child poverty will begin in autumn. | In a speech in Westminster on Thursday, Mr Duncan Smith will announce that a green paper consultation on how best to measure child poverty will begin in autumn. |
Mr Duncan Smith is expected to say the government remains committed to Labour's child poverty target but that "poverty is not about income alone". | Mr Duncan Smith is expected to say the government remains committed to Labour's child poverty target but that "poverty is not about income alone". |
"Of course money is important and will always play a part in future measurements of poverty. But increased income from welfare transfers is temporary if nothing changes," he will say. | "Of course money is important and will always play a part in future measurements of poverty. But increased income from welfare transfers is temporary if nothing changes," he will say. |
An example of this, Mr Duncan Smith will say, would be drug-addicted parents who were technically taken out of poverty by an extra pound but spent that money on another fix. | An example of this, Mr Duncan Smith will say, would be drug-addicted parents who were technically taken out of poverty by an extra pound but spent that money on another fix. |
"Unless we find a way of properly measuring changes to children's life chances, rather than the present measurement of income alone, we risk repeating the failures of the past," he will say. | "Unless we find a way of properly measuring changes to children's life chances, rather than the present measurement of income alone, we risk repeating the failures of the past," he will say. |
Universal credit | Universal credit |
Mr Duncan Smith will present figures suggesting the government's Universal Credit will pull the "vast majority" of young people out of poverty if at least one parent works 35 hours a week at the minimum wage. The figure would be 24 hours for a lone parent. | Mr Duncan Smith will present figures suggesting the government's Universal Credit will pull the "vast majority" of young people out of poverty if at least one parent works 35 hours a week at the minimum wage. The figure would be 24 hours for a lone parent. |
Labour's shadow work and pensions secretary Liam Byrne said: "In a great country like Britain we should stand behind parents fighting to bring up their children free of the curse of poverty. | Labour's shadow work and pensions secretary Liam Byrne said: "In a great country like Britain we should stand behind parents fighting to bring up their children free of the curse of poverty. |
"Behind [Prime Minister David] Cameron's promises we learn today that those parents and their children will now be abandoned and told, 'you are on your own'." | "Behind [Prime Minister David] Cameron's promises we learn today that those parents and their children will now be abandoned and told, 'you are on your own'." |
The Department of Work and Pensions said the universal credit would replace a "complex mess" of benefits and make work pay. | The Department of Work and Pensions said the universal credit would replace a "complex mess" of benefits and make work pay. |
A spokesman said "vast sums of money" had gone into the benefits system over the past decade in an attempt to address poverty but that this approach had "failed". | A spokesman said "vast sums of money" had gone into the benefits system over the past decade in an attempt to address poverty but that this approach had "failed". |
Minimum wage increase | Minimum wage increase |
Charities have warned cuts to benefit payments will dramatically increase the number of young people growing up in poor households. | Charities have warned cuts to benefit payments will dramatically increase the number of young people growing up in poor households. |
Oxfam called for an increase in the minimum wage to protect low-income workers from a "perfect storm" of benefit cuts, a rising cost of living and a lack of jobs. | Oxfam called for an increase in the minimum wage to protect low-income workers from a "perfect storm" of benefit cuts, a rising cost of living and a lack of jobs. |
It said 60% of working-age adults in poverty were not from jobless households but that austerity measures were "disproportionately impacting" the low-paid with average earnings shrinking 4.4%. | It said 60% of working-age adults in poverty were not from jobless households but that austerity measures were "disproportionately impacting" the low-paid with average earnings shrinking 4.4%. |
The charity said cuts to working tax credits needed to be reversed and the amount of the new Universal Credit people lost when starting a job should be reduced from 65% to 55%. | The charity said cuts to working tax credits needed to be reversed and the amount of the new Universal Credit people lost when starting a job should be reduced from 65% to 55%. |
Oxfam's director of UK poverty Chris Jones said that having a job was no longer necessarily enough to lift someone out of poverty. | Oxfam's director of UK poverty Chris Jones said that having a job was no longer necessarily enough to lift someone out of poverty. |
"The government is justifying huge cuts to welfare support for people on low incomes by saying this will incentivise work, but there simply aren't enough decent jobs available," he said. | "The government is justifying huge cuts to welfare support for people on low incomes by saying this will incentivise work, but there simply aren't enough decent jobs available," he said. |
"If we carry on down this path, the UK will return to levels of inequality not seen since Victorian times." | "If we carry on down this path, the UK will return to levels of inequality not seen since Victorian times." |
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