News story

11th April 2002

Poverty Figures: Government Missing Target

Steve Webb MP, Liberal Democrat Shadow Work and Pensions Secretary, commenting on new Government figures published today which show that Labour has failed to meet it’s own target on tackling child poverty, said:

“These disappointing figures prove there is little substance behind Labour’s rhetoric on reducing poverty and inequality.

“We see that after four years of a Labour Government nearly 4 million children remain in poverty. During the election Gordon Brown claimed that his policies had taken 1.2 million children out of poverty. The truth is that the Government has achieved less than half of this. Despite the rhetoric on tackling child poverty, the figures show the reality- four wasted years.

“Labour has failed to get to grips with the scale of the problem. If they are serious about taking another million children out of poverty by the end of this Parliament, then the Government will have to match its rhetoric with action and investment.”

ENDS


Notes to Editors:

- The statistics are taken from the DWP publication “Households Below Average Income” 1994/5 to 2000/01 published today. Comparative figures are taken from the previous editions. The poverty measure shown is that adopted by the Government – People living in households below 60% of median income (after housing costs).

- In last year’s budget, Gordon Brown said, “tax and benefit reforms in this parliament (1997 – 2001) will lift over 1.2 million children out of poverty”. The Government has pledged to end child poverty in 20 years, halve it in 10 and reduce it by at least a quarter by 2004.

- The figures show that child poverty – which the Government pledged to abolish – fell by only 500,000 between 1996/97 and 2000/01. In 1996/97 the figure for children in poverty was 4.4 million and the latest figure is 3.9 million.

- The figures show that pensioner poverty fell by 200,000 between 1996/97 and 2000/01. In 1996/97 the figure for pensioners in poverty was 2.5 million and the latest figure is 2.3 million.

- For working age adults, poverty fell by 300,000 between 1996/7 and 2000/01. In 1996/97 the figure for people in poverty was 6.9 million and the latest figure is 6.6 million.

- The Government introduced both the Minimum Income Guarantee (MIG) and the Minimum Wage in April 1999. Working Families Tax Credit (WFTC) was introduced in October 1999.