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Social mobility report: Work 'may be no route out of poverty' Social mobility report: Work 'may be no route out of poverty'
(about 1 hour later)
Work no longer pays enough to provide a route out of poverty for millions of families, the government's social mobility tsar has warned. Working parents in Britain "simply do not earn enough to escape poverty", the government's social mobility tsar Alan Milburn has warned.
In his report, one-time Labour minister Alan Milburn highlighted stagnating incomes and rising prices. The ex-Labour minister said two-thirds of poor children were now from families where an adult worked.
He warned middle-class children faced being worse off than their parents for the first time in over a century. His report also warned falling earnings and rising prices meant many low and middle-class children faced being "worse off" than their parents.
The report also urged employers to do more to support low-paid families earning less than a living wage. He urged employers to "provide higher minimum levels of pay" and training.
It also suggested pensioners - who have so far had many of their benefits protected from cuts - could help by sharing more of the burden of austerity. Mr Milburn suggested some benefits currently protected from cuts - such as free TV licences and winter fuel allowances for pensioners - could be means tested in order to share the burden of austerity more fairly.
But Deputy Prime Minister Nick Clegg warned against asking pensioners to pay more to tackle the problem.But Deputy Prime Minister Nick Clegg warned against asking pensioners to pay more to tackle the problem.
'Lack of progress''Lack of progress'
In its first report, the government's Social Mobility and Child Poverty Commission recommended using some of the funding set aside to help the poorest children in society to boost the life chances of middle-class families.In its first report, the government's Social Mobility and Child Poverty Commission recommended using some of the funding set aside to help the poorest children in society to boost the life chances of middle-class families.
This could help parents who, although not wealthy, were still too well-off to benefit from significant state help, it said.This could help parents who, although not wealthy, were still too well-off to benefit from significant state help, it said.
The commission pointed out that real-terms incomes had stagnated since 2003 while prices continued to rise - meaning employment might not enable a low-income family to escape poverty.The commission pointed out that real-terms incomes had stagnated since 2003 while prices continued to rise - meaning employment might not enable a low-income family to escape poverty.
The report suggested that, in the current economic climate, it was unrealistic to expect the government to continue topping up low pay using working tax credits.The report suggested that, in the current economic climate, it was unrealistic to expect the government to continue topping up low pay using working tax credits.
Instead, the commission argued employers needed to do more by paying higher minimum wages and offering better training and career development.Instead, the commission argued employers needed to do more by paying higher minimum wages and offering better training and career development.
Speaking to the BBC, Mr Milburn insisted the problem of child poverty was now a "problem for working families".Speaking to the BBC, Mr Milburn insisted the problem of child poverty was now a "problem for working families".
Two thirds of children officially deemed as being poor now came from a family where at least one parent was working - and in three out of four of those cases, at least one of their parents was working full time, he pointed out.Two thirds of children officially deemed as being poor now came from a family where at least one parent was working - and in three out of four of those cases, at least one of their parents was working full time, he pointed out.
Mr Milburn admitted that while work was "still very important", it was not a cure for poverty.Mr Milburn admitted that while work was "still very important", it was not a cure for poverty.
Around five million people in the country - mainly women - were earning less than the living wage, which is about £7.45 an hour outside of London, he said.Around five million people in the country - mainly women - were earning less than the living wage, which is about £7.45 an hour outside of London, he said.
"These are the people frankly who do all the right things, they go out to work, they stand on their own two feet, they look after their families - they're the strivers not the shirkers - and yet they're all too often the forgotten people of Britain and I think they desperately need a new deal.""These are the people frankly who do all the right things, they go out to work, they stand on their own two feet, they look after their families - they're the strivers not the shirkers - and yet they're all too often the forgotten people of Britain and I think they desperately need a new deal."
'Sharing the burden''Sharing the burden'
He called on employers and the government to do more to help those feeling a squeeze in living standards, but also suggested pensioners could provide part of the solution.He called on employers and the government to do more to help those feeling a squeeze in living standards, but also suggested pensioners could provide part of the solution.
He said many pensioners felt "uncomfortable" that ordinary families were having their benefits cut back while their own benefits - including the winter fuel allowance and free bus passes - were safeguarded.He said many pensioners felt "uncomfortable" that ordinary families were having their benefits cut back while their own benefits - including the winter fuel allowance and free bus passes - were safeguarded.
"Many are asking 'is that fair and right, and shouldn't there be a fairer sharing of the burden?'""Many are asking 'is that fair and right, and shouldn't there be a fairer sharing of the burden?'"
Writing in the Daily Telegraph, Mr Clegg praised the findings, saying: "It is not every day that the government welcomes a report that criticises the way things are being done and draws attention to a lack of progress made."Writing in the Daily Telegraph, Mr Clegg praised the findings, saying: "It is not every day that the government welcomes a report that criticises the way things are being done and draws attention to a lack of progress made."
But he described the report's questioning of whether cuts were falling fairly among different generations as "debateable".But he described the report's questioning of whether cuts were falling fairly among different generations as "debateable".
"Punishing pensioners isn't going to help a single child achieve more in life," he said."Punishing pensioners isn't going to help a single child achieve more in life," he said.
Mr Milburn, who stood down as an MP at the last election, also advocated a scheme for pairing bright children with the best teachers in an effort to raise attainment.Mr Milburn, who stood down as an MP at the last election, also advocated a scheme for pairing bright children with the best teachers in an effort to raise attainment.
The former health secretary, who has been asked by the government to produce a series of reports, has previously said social mobility - the idea that individuals can better themselves in terms of educational opportunity, job prospects and salaries from one generation to the next - is "flatlining".The former health secretary, who has been asked by the government to produce a series of reports, has previously said social mobility - the idea that individuals can better themselves in terms of educational opportunity, job prospects and salaries from one generation to the next - is "flatlining".
His latest report comes after official figures revealed the number of those unemployed in the UK fell by 18,000 to 2.49 million in the June-August period.His latest report comes after official figures revealed the number of those unemployed in the UK fell by 18,000 to 2.49 million in the June-August period.
The Office for National Statistics (ONS) also said the number of people claiming Jobseeker's Allowance last month fell by 41,700 to 1.35 million.The Office for National Statistics (ONS) also said the number of people claiming Jobseeker's Allowance last month fell by 41,700 to 1.35 million.