Use of child poverty statistics in government policy Kate Sturdy, Head of Policy, Child Poverty Unit Royal Statistical Society, 10 February 2015

Understanding Child Poverty 3: Going forward 2: Using data to understand and tackle child poverty 1: The Child Poverty Act 2010

The Child Poverty Act 2010 The Child Poverty Act 2010 came about as a result of Gordon Brown’s commitment in 2008 to legislate to “eradicate child poverty in the UK by 2020”. The Child Poverty Act places a duty on the UK Government to meet four income-based poverty targets by 2020/21 The Act requires the UK government to publish a regular child poverty strategy. The devolved administrations also have a requirement to publish their own strategies. Part 2 of the Act requires local authorities and partner organisations to: collaborate and cooperate in tackling child poverty in their local area produce a Child Poverty Needs Assessment publish a local Child Poverty Strategy.

Who is involved in achieving the goals set in the Child Poverty Act? . Child Poverty Act (2010) Child Poverty Unit Local Authorities Devolved Administrations Social Mobility and Child Poverty Commission

Understanding Child Poverty 3: Going forward 2: Using data to understand and tackle child poverty 1: The Child Poverty Act 2010

What are the latest official figures on child poverty? Measure Definition (all on a ‘before housing costs’ basis) Target Latest data (2012/13) Relative poverty the proportion of children living in households where income is less than 60% of median income Less than 10% 17% Absolute poverty the proportion of children living in households where income is less than 60% of median income in 2010/11, adjusted for prices. Less than 5% 19% Combined low income and material deprivation the proportion of children who experience material deprivation and live in households where income is less that 70% of median income. 13% Persistent poverty the proportion of children living in households in relative poverty in at least three out of the four previous years Less than 7% 12% (based on 2005-2008 data)

Where do our national child poverty statistics come from? Data on 3 of the 4 child poverty target measures comes from the Households Below Average Income (HBAI) National Statistics publication – sourced from the Family Resources Survey (FRS). FRS is a survey of family incomes from around 20,000 households, allowing for national and regional poverty estimates. However, not enough data is collected for more local figures to be produced robustly. We also make use of external data sources to measure child poverty, for example using the British Household Panel Survey/Understanding Society survey to measure persistent poverty.

How do we measure child poverty locally? CPU use two measures to monitor levels of child poverty locally: Children in Low-Income Families Local Measure – This measures children living in families who are either: a) in receipt of out-of-work benefits or b) in receipt of tax credits and in relative low income. Local child poverty proxy measure – This measures the number and proportion of children who live in households where someone claims an out-of-work benefit.

Child poverty basket of local indicators Last updated by CPU last year, this brings together a basket of 41 existing government statistics at the local authority level for England. Includes information on income, health, education, unemployment and other factors. These are produced to support local authorities with their understanding of child poverty in their area.

Child poverty strategy The strategy sets out Government action to: Tackle poverty now through supporting families into work and to increase their earnings; Support living standards through raising incomes (via work for the vast majority) and decreasing costs for low income families; and Prevent poor children becoming poor adults through raising their educational attainment.

Key drivers of intergenerational child poverty Future low income Low child education outcomes Childhood poverty Low non - cognitive skills ( child ) Parental ill health Poor home environment Child ill health Low parental qualifications Bad employment outcomes in adulthood FUTURE Within context of education system

Example 1: Low child education outcomes Extensive data on Free School Meals demonstrates significant attainment gap Government has invested in Pupil Premium (£2.5 billion a year) and Early Years Pupil Premium (£50 million a year from 2015) to address this Data shows the attainment of FSM pupils has increased. Local authorities and school are also using data to drive up attainment and optimise their use of FSM funding: E.g. London Borough of Lambeth is closing attainment gap through School Improvement Advisor Service

Example 2: Low non-cognitive skills Low non-cognitive skills were identified as a driver of intergenerational child poverty in our Child Poverty Evidence Review. Government has invested resources into tackling this: Supporting schools in the different ways they choose to develop and build character, including by removing requirements which limit the length of the school day £5 million to teach soft skills to schoolchildren such as punctuality, team work, and basic communication

Understanding Child Poverty 3: Going forward 2: Using data to understand and tackle child poverty 1: The Child Poverty Act 2010

Questions going forward… How to incorporate new data/evidence into policymaking process? And how to disaggregate the effects of different policies on child poverty levels both nationally and locally? How can data better capture the real lived experience of children living in poverty in the UK in different areas?