§ Mr. WebbTo ask the Chancellor of the Exchequer what definition of poverty underlies his statement in this year's Budget statement that 700,000 children will be taken out of poverty as a result of the Budget. [78522]
§ Ms Hewitt[holding answer 25 March 1999]The estimate of 700,000 children is based on the number of children in low income families who will no longer be living in households below half the average equivalised income after allowing for housing costs. This calculation looks at the impact of all the tax and benefit measures announced in the last two Budgets, the introduction of the Working Families Tax Credit and National Minimum Wage.
This method is one snap-shot indicator of one dimension of relative poverty. Child poverty is complex. It is characterised by a number of related problems, including persistent low family incomes caused by parental unemployment, damaged opportunities later in life, and too often a poor education in childhood.
The Government's strategy for reducing poverty and social exclusion is tackling all aspects of poverty and tackling it at source. It is focused on investment in prevention, work as the best way out of poverty and regenerating the poorest communities, while providing support for those who cannot work.
245WThe Government's report on the progress being made on tackling poverty and social exclusion, due to be published in early summer, will explain our policy priorities in more depth and include a range of low income indicators.