HC Deb 13 January 2003 vol 397 cc396-8
7. Mr. Brian Jenkins (Tamworth)

What his targets are for reducing the number of households that receive benefits and which are below the poverty threshold. [89706]

The Parliamentary Under-Secretary of State for Work and Pensions (Malcolm Wicks)

On 18 September 2002, we published a new edition of "Opportunity for All", which provides a detailed account of our strategy for tackling poverty and social exclusion as well as the range of indicators and targets against which we measure progress. The report shows that we have achieved a great deal and that our approach is working. We will continue to deliver on that challenge over the years to come.

Mr. Jenkins

I thank my hon. Friend for that answer. We are all aware that work is the only way out of poverty for many and that we are encouraging people in areas where the number of vacancies is greater than the number of jobless to take a role, but what is he doing to protect the vulnerable innocent—the children—who all too often live in households where income falls below that which we deem necessary?

Malcolm Wicks

We all recognise that over, perhaps, the past 30 years, due to economic as well as social and family factors, poverty in this country began to wear a younger face—child poverty increased significantly. Back in 1996–97, one third of children lived in low-income households. I am pleased to say that, compared with 1997, there are about half a million fewer children in low-income households, based on a relative measure. Given the real increase in incomes, and therefore the moving target that we face, that is a real improvement in tackling relative poverty as it affects too many of our children.

Sir Patrick Cormack (South Staffordshire)

I n the words of the question, what are the Minister's targets? Has he achieved them, or is he going to?

Malcolm Wicks

The Government have a strong ambition to eradicate child poverty—[Interruption.] If the House will listen, we also have a public service agreement to reduce child poverty by a third. So far, we have gone a third of a way in a third of the time towards achieving that target.

David Cairns (Greenock and Inverclyde)

Thirty-nine per cent. of people of working age in my constituency are economically inactive, and we have the third poorest average wage rates in the whole of Scotland. Will my hon. Friend therefore consider urging his right hon. Friend the Secretary of State to site one of the six new pilot schemes giving people on incapacity benefit extra help to get into work in my constituency, as that will go some way towards tackling one of the most serious causes of poverty households?

Malcolm Wicks

I am afraid that the decision on the pilots has not yet been made, but I am sure that my colleagues have heard my hon. Friend's genuine concern. We all recognise that incapacity issues are some of the most taxing facing our society, and our recent document shows our determination to tackle those issues effectively.

Hywel Williams (Caernarfon)

Work is the best way out of poverty. However, the rate of economic activity in Wales is much lower than in the south-east of England—61.3 per cent. in early 2000 for people over 50 compared with 76.8 per cent. in the south-east. Can the Minister assure us that that gap is being closed?

Malcolm Wicks

We are conscious of regional and local variations in unemployment. So far, the success is that some 75 per cent. of people of working age in Britain are in jobs, which puts us more or less at the top of the European league table—only two smaller countries have a slightly better record. We are not complacent, however, and now realise that our understanding of the causes of unemployment has to be more detailed and specific if we are successfully to tackle them and the issues raised by the hon. Gentleman.

Mr. Bill O'Brien (Normanton)

My hon. Friend is correct to draw attention to the action taken by his Department to eradicate child poverty. However, will he explain what he intends to do to ensure that the Child Support Agency, which is not collecting maintenance so some families are driven into greater poverty, becomes more efficient and provides maintenance for the 30 per cent. of children who are losing out at present?

Malcolm Wicks

Certainly, I alluded earlier to family changes that have affected Britain and the fact that many of our children are now growing up in one-parent, rather than two-parent families. That is a major contemporary cause of poverty, hence the introduction of the Child Support Agency, whose performance is improving year by year. We have, of course, introduced proposals for reform. When we are in a position to implement them after thoroughly testing the system and after my right hon. Friend the Secretary of State is able come to the House with dates, they will further improve the situation. With a simpler formula, our colleagues in the CSA will be able to spend more time on enforcement, which is a major step in the right direction.