Press releases
Barnardo's reveals new ways to help poor children
Release Date: 09/09/2008
A report by children’s charity Barnardo's and business advisory firm Deloitte sets out three affordable and realistic options through which Government expenditure can be reprioritised to halve child poverty by 2010.
Under current spending plans the Government will fall short of its own target by 550,000 children. Despite difficult economic conditions there are ways it can still meet its commitment to reduce child poverty.
Following publication of How to Halve Child Poverty by 2010: Options for Redirecting Resources to Reduce Child Poverty, Barnardo's is calling for:
- the £2.7 billion 10p tax rate compensation package to be redirected towards alleviating child poverty. This package did virtually nothing for poor families and largely benefited those on higher than average incomes
- the Government to amend the tax credit system so that families earning between £40,000 to £50,000 no longer qualify for help
- the Government to redirect the £2.7 billion and the money saved from changes to the tax credit system to improve the life chances of children living in poverty. The report explores three options that would have a significant impact on child poverty and virtually ensure the 2010 target is hit.
Barnardo's chief executive Martin Narey said: 'When the Government invested £2.7 billion to compensate losers of the 10p tax rate abolition, the benefit to families in poverty was, essentially, zero.
'Barnardo's recognises that it would be glib to demand additional money be spent to meet the target at a time of economic difficulty. This is why we are encouraging Gordon Brown to be prudent and redirect existing resources to achieve his goal.
'Spending decisions aren’t easy, but surely, when it comes to children living in poverty in our country, there is no choice.'
Option one will bring 600,000 children out of poverty, option two will bring 700,000 children out of poverty and option three will bring 500,000 children out of poverty.
Heather Hancock, leader of Deloitte's public sector strategy practice and partner for the research, said: 'The Government's commitment to halve child poverty by 2010 was recognised at the time as ambitious and challenging - and absolutely the right focus to address a problem that should concern everyone in our society.
'We are delighted that Deloitte's analysis, drawing on our extensive experience in this field, has enabled Barnardo's to set out a range of viable policy options that can take the Government ever closer to delivering on that ambition.'
Notes to Editors
- Demonstration of how each option could work on a weekly basis for poor children, depending on the family they live in.
A baby with two parents both with part-time jobs working for the national minimum wage* will be:
£10.29 better off under option 1
£5.49 better off under option 2
£37.62 better off under option 3
A single parent with two children, who doesn’t work will be:
£20.58 better off under option 1
£10.96 better off under option 2
£13.85 better off under option 3
A two-parent family with four children and one adult working full time for the national minimum wage will be:
£41.20 better off under option 1
£83.50 better off under option 2
£27.74 better off under option 3
A two-parent family with two children, one adult working full time for £12 per hour and the other working part time for national minimum wage will be:
87p better off under option 1
£8.75 worse off under option 2
£23.58 better off under option 3
*calculations are based on the projected national minimum wage for October which will be £5.73 and hour. - Those who gained the most from the 10p tax rate compensation package are families earning £35,000, with an average £3.31 a week. Those who gained the least are families earning less than £16,000 with an average 44p a week.
- Barnardo’s chief executive Martin Narey is available for interview. Please contact media officer Rebecca Goding on 020 8498 7534.
- For a copy of How to Halve Child Poverty by 2010 visit Barnardo's poverty microsite.
- Figures used in How to Halve Child Poverty by 2010 are the Government’s own child poverty figures, which do not include housing costs. According to figures that are calculated after housing costs there were 4.4 million children living in poverty in 1999. Now there are 3.9 million.
- Barnardo’s works with more than 100,000 children, young people and their families in 394 specialised projects in local communities across the UK. This includes work with children affected by today’s most urgent issues: poverty, homelessness, disability, bereavement and abuse.
We believe in the potential in every child and young person, no matter who they are, what they have done or what they have been through. We will support them, stand up for them and bring out the best in each and every child.
Barnardo’s is a member of the Campaign to End Child Poverty. - How to Halve Child Poverty by 2010 was jointly researched and written by Barnardo’s and Deloitte. Deloitte’s contribution was provided at no cost through Deloitte’s pro-bono consulting programme.
- Deloitte’s public sector practice works closely with both central and local Government departments. At any one time Deloitte’s consulting practice has approximately 1,500 people engaged in public sector projects.
- In this press release references to Deloitte are references to Deloitte & Touche LLP which is among the country’s leading professional services firms, providing audit, tax, consulting and corporate finance services. Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein whose member firms are separate and independent legal entities. Neither DTT nor any of its member firms has any liability for each other’s omissions. Services are provided by member firms or their subsidiaries and not by DTT. Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority. The information contained in this press release is correct at the time of going to press.
www.deloitte.co.uk
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