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Duncan Smith to outline plans to change poverty measure Duncan Smith to outline plans to change poverty measure
(40 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 creditUniversal 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 increaseMinimum 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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