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Alan Milburn delivers broadside against main parties’ policies on poverty Alan Milburn delivers broadside against main parties’ policies on poverty
(about 20 hours later)
The government’s commission on social mobility will accuse all three main parties of a lamentable approach to solving poverty in the UK, claiming that coalition plans to raise the personal tax allowance will be ineffective and Labour’s plan to raise the minimum wage to £8 an hour is less ambitious than the coalition’s achievement in this parliament.The government’s commission on social mobility will accuse all three main parties of a lamentable approach to solving poverty in the UK, claiming that coalition plans to raise the personal tax allowance will be ineffective and Labour’s plan to raise the minimum wage to £8 an hour is less ambitious than the coalition’s achievement in this parliament.
Alan Milburn, a former Labour cabinet minister who is chair of the commission, will challenge all three parties to be honest with the electorate and admit they have no chance of meeting the statutory target of halving child poverty by 2020. He will be publishing the commission’s second State of the Nation report, an overview that is likely to be uncomfortable for all politicians.Alan Milburn, a former Labour cabinet minister who is chair of the commission, will challenge all three parties to be honest with the electorate and admit they have no chance of meeting the statutory target of halving child poverty by 2020. He will be publishing the commission’s second State of the Nation report, an overview that is likely to be uncomfortable for all politicians.
The government defines child poverty as households living on an income 60% below mean average earnings. The target was set by Tony Blair in 1999 and has been criticised as a superficial measure, but never disowned by the coalition government. The government defines child poverty as households living on less than 60% of the median income. The target was set by Tony Blair in 1999 and has been criticised as a superficial measure, but never disowned by the coalition government.
An attempt by the coalition to reach agreement on revised child poverty targets collapsed in February after nearly two years of negotiations in which George Osborne, the chancellor, refused to accept new definitions.An attempt by the coalition to reach agreement on revised child poverty targets collapsed in February after nearly two years of negotiations in which George Osborne, the chancellor, refused to accept new definitions.
Liberal Democrat negotiators, notably David Laws, the schools minister, claimed Osborne, unlike Iain Duncan Smith, the work and welfare secretary, did not want any new targets that the Conservatives would be required to accept at a time of welfare cuts. Laws said he was “disappointed, angry and frustrated” by Osborne’s approach, and it is thought Milburn shares that frustration.Liberal Democrat negotiators, notably David Laws, the schools minister, claimed Osborne, unlike Iain Duncan Smith, the work and welfare secretary, did not want any new targets that the Conservatives would be required to accept at a time of welfare cuts. Laws said he was “disappointed, angry and frustrated” by Osborne’s approach, and it is thought Milburn shares that frustration.
Milburn will attack Osborne’s plans to freeze most benefits for two years, including in work benefits saying it will only make the working poor worse off.Milburn will attack Osborne’s plans to freeze most benefits for two years, including in work benefits saying it will only make the working poor worse off.
Similarly he will argue that further increases in the personal tax allowance beyond £10,500 supported by the Conservatives and Liberal Democrats at their party conferences “are not the best use of resources if the aim is to reduce poverty and improve mobility”.Similarly he will argue that further increases in the personal tax allowance beyond £10,500 supported by the Conservatives and Liberal Democrats at their party conferences “are not the best use of resources if the aim is to reduce poverty and improve mobility”.
In a further attack that will be embarrassing to Labour, he will challenge Ed Miliband’s headline promise to increase the statutory minimum wage to £8 an hour.In a further attack that will be embarrassing to Labour, he will challenge Ed Miliband’s headline promise to increase the statutory minimum wage to £8 an hour.
According to commission sources, Milburn will say the Labour minimum wage target, announced with fanfare by Miliband at his party conference, is “not at all ambitious as it implies a slower rate of increase between 2014 and 2020 than there was between 1999 and 2014” and, if that trend continued, the minimum wage would “actually be worth £8.23 an hour in 2020, not £8”.According to commission sources, Milburn will say the Labour minimum wage target, announced with fanfare by Miliband at his party conference, is “not at all ambitious as it implies a slower rate of increase between 2014 and 2020 than there was between 1999 and 2014” and, if that trend continued, the minimum wage would “actually be worth £8.23 an hour in 2020, not £8”.
Commission sources said Milburn was likely to criticise each of the main political parties for making too little effort “to reconcile the social ends they say they want with the policy means to which each of them are committed”.Commission sources said Milburn was likely to criticise each of the main political parties for making too little effort “to reconcile the social ends they say they want with the policy means to which each of them are committed”.
An increasingly assertive Milburn will also challenge the government to admit that its anti-poverty drive is chaotic and that the primary relative income target is unachievable by 2020, partly because of the state of public finances.An increasingly assertive Milburn will also challenge the government to admit that its anti-poverty drive is chaotic and that the primary relative income target is unachievable by 2020, partly because of the state of public finances.
He will say the parties need to move away from ameliorative measures such as boosting child tax credits, and instead look at the deeper causes of poverty.He will say the parties need to move away from ameliorative measures such as boosting child tax credits, and instead look at the deeper causes of poverty.
Duncan Smith has persistently criticised the inherited targets and proposed a redefined target including factors such as reduction of the educational achievement gap between children on the pupil premium and wealthier children measured by GCSE grades, and entrenched poverty measures such as indicators such as worklessness, families with three or more children, and low parental qualifications.Duncan Smith has persistently criticised the inherited targets and proposed a redefined target including factors such as reduction of the educational achievement gap between children on the pupil premium and wealthier children measured by GCSE grades, and entrenched poverty measures such as indicators such as worklessness, families with three or more children, and low parental qualifications.
But two shadow cabinet members from very different social backgrounds Gloria de Piero and Tristam Hunt say they are to look harder at the causes of social immobility. They propose CVs that might exclude the university background of an applicant.But two shadow cabinet members from very different social backgrounds Gloria de Piero and Tristam Hunt say they are to look harder at the causes of social immobility. They propose CVs that might exclude the university background of an applicant.
They point: “Only 7 per cent of all young people attend private schools, and less than 5 per cent attend grammar schools, but combined, they accounted for 44 per cent of last year’s UK-schooled fast stream applicants in the civil service, and 46 per cent of those who succeeded”.They point: “Only 7 per cent of all young people attend private schools, and less than 5 per cent attend grammar schools, but combined, they accounted for 44 per cent of last year’s UK-schooled fast stream applicants in the civil service, and 46 per cent of those who succeeded”.
No wonder more than half of the current Whitehall permanent secretaries went to fee paying schools.No wonder more than half of the current Whitehall permanent secretaries went to fee paying schools.
Pointing to what it calls “profound changes” in the housing and labour markets the Report will warn that the risk is very real that this generation of young people – from low income families especially – will simply not have the same opportunities to progress as their parents’ generation.Pointing to what it calls “profound changes” in the housing and labour markets the Report will warn that the risk is very real that this generation of young people – from low income families especially – will simply not have the same opportunities to progress as their parents’ generation.
It is expected that the commission’s report will make a series of far-reaching recommendations covering education, low pay, further and higher education, access to the professions and public spending.It is expected that the commission’s report will make a series of far-reaching recommendations covering education, low pay, further and higher education, access to the professions and public spending.
In one of his recommendations, he will propose unpaid internships are made unlawful.In one of his recommendations, he will propose unpaid internships are made unlawful.
Only last week the government disappointed many child poverty campaigners by saying set it will define a new target for persistent poverty as ensuring less than 7 % of children live in a household with an equivalent income of less than 60 % of the UK median income for at least three years out of four. The Commission had proposed the persistent child poverty target be no more than 50 % of whatever total relative child poverty is in 2020.Only last week the government disappointed many child poverty campaigners by saying set it will define a new target for persistent poverty as ensuring less than 7 % of children live in a household with an equivalent income of less than 60 % of the UK median income for at least three years out of four. The Commission had proposed the persistent child poverty target be no more than 50 % of whatever total relative child poverty is in 2020.
• This article was amended on 20 October 2014. The measure for child poverty is a household income less than 60% of the median income, rather than the mean income, as a previous version said.