Overview

This bill mandates the UK Secretary of State to establish a target for reducing child poverty, defining child poverty through multiple components (low income relative to median income, combined low income and material deprivation, absolute low income, and persistent poverty), and requiring regular reporting on progress towards this target. It also necessitates the creation and regular review of a UK-wide strategy to combat child poverty, encompassing various policy areas.

Description

The bill aims to significantly reduce child poverty in the UK by establishing a legally binding target. This target comprises four key components:

• Relative Low Income: Reducing the percentage of children in households with equivalised net income below 60% of the median household income to under 10%.
• Combined Low Income and Material Deprivation: Reducing the percentage of children in households with equivalised net income below 70% of the median income and experiencing material deprivation to under 5%.
• Absolute Low Income: Reducing the percentage of children in households with equivalised net income below 60% of a base amount (adjusted for inflation since 2010) to under 5%.
• Persistent Poverty: Reducing the percentage of children experiencing low income (below 60% of median income) in at least three out of four consecutive years to under 7%.

The Secretary of State, after consulting the Social Mobility Commission, will define key terms (qualifying household, income calculation, etc.) and set a target date for achieving these reductions. A UK strategy outlining measures to meet the target, encompassing employment support, financial aid, parenting skills, health services, education, childcare, and social inclusion, must be published and regularly reviewed. The Secretary of State will also be required to submit biennial reports to Parliament on progress towards the target and strategy implementation.

Government Spending

The bill will likely increase government spending. While specific figures are not provided, expenses associated with implementing the strategy (including potential new programs or increased funding for existing ones) will be paid out of money provided by Parliament. Additionally, any increase in payments under other Acts attributable to this bill will also be covered by Parliament.

Groups Affected

This bill will primarily affect:

• Children living in poverty: The bill aims to directly improve their circumstances through targeted interventions and policy changes.
• Their families: The bill's measures, such as employment support and financial aid, will directly impact families struggling with poverty.
• Government departments: Increased responsibilities related to strategy development, implementation, reporting, and potential funding increases.
• Social Mobility Commission: Involved in consultations related to the target and its definition.
• Parliament: Responsible for overseeing the implementation and reviewing progress reports.

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