Child Poverty

Oral Answers to Questions — Treasury – in the House of Commons at 11:30 am on 29 April 2014.

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Photo of Kate Green Kate Green Shadow Minister (Work and Pensions) 11:30, 29 April 2014

What recent assessment he has made of the effect of his fiscal policies on the level of child poverty.

Photo of Chris Ruane Chris Ruane Labour, Vale of Clwyd

What recent assessment he has made of the effect of his fiscal policies on the level of child poverty.

Photo of Nicky Morgan Nicky Morgan Minister for Women, The Financial Secretary to the Treasury

This Government are protecting vulnerable groups while taking action to tackle the record deficit we inherited. Work remains the best way out of poverty and last month’s Budget took action to support families by making the tax and welfare system fairer and by further increasing the income tax personal allowance to £10,500 next year, which will take 3.2 million people on low incomes out of tax altogether.

Photo of Kate Green Kate Green Shadow Minister (Work and Pensions)

I must take issue with the Minister. Most children in poverty are in working families, so work is not a secure route out of poverty. Why are the Government’s policies on the proceeds of growth not reaching those children?

Photo of Nicky Morgan Nicky Morgan Minister for Women, The Financial Secretary to the Treasury

I have already said in answer to the question that work remains the best way out of poverty, and I set out the raising of the personal allowance. There is no doubt that children who grow up in workless households are three times more likely to be in poverty. This Government remain committed to eradicating child poverty, but are taking action to tackle the root causes rather than allowing people to continue in welfare dependency.

Photo of Chris Ruane Chris Ruane Labour, Vale of Clwyd

Is the Minister concerned that the Institute for Fiscal Studies predicts that an additional 400,000 children will be living in poverty by the end of this Parliament? Workers may have jobs, but their children are not benefiting from them. That is the issue that the hon. Lady and her Government fail to realise.

Photo of Nicky Morgan Nicky Morgan Minister for Women, The Financial Secretary to the Treasury

As I have already said, this Government remain absolutely committed to eradicating child poverty. We have set out our child poverty strategy, which sets out our aims. In October 2011 the IFS predicted a fall of 100,000 in the number of children in relative poverty, but the actual fall was 300,000. Rather than looking at predictions, let us look at what we actually achieve in government.

Photo of Mary Macleod Mary Macleod Conservative, Brentford and Isleworth

The Minister is absolutely right that the way out of child poverty is to reduce unemployment, which has gone down 20% in my constituency, and to take the poorest paid out of tax altogether. Will my hon. Friend confirm that this Government’s tax-free child care policies are also important, as they help 2 million families with their child care, which will make a real difference to them—four times better than the previous Government did with their voucher scheme?

Photo of Nicky Morgan Nicky Morgan Minister for Women, The Financial Secretary to the Treasury

I thank my hon. Friend very much for her question. She is absolutely right that child care is one of the biggest barriers to enabling people, particularly women, to work. The Government’s tax-free child care policies as well as the moves under universal credit to help those on low incomes will be instrumental in helping more and more people. We have already seen the recently published employment figures showing that more women are in work than ever before.