Measuring Child Poverty: A Consultation on Better Measures of Child Poverty

Transcription

1 Measuring Child Poverty: A Consultation on Better Measures of Child Poverty Consultation Response Form The closing date for this consultation is: 15 February 2013 Your comments must reach us by that date.

2 Information provided in response to this consultation, including personal information, may be subject to publication or disclosure in accordance with the access to information regimes, primarily the Freedom of Information Act 2000 and the Data Protection Act If you want all, or any part, of your response to be treated as confidential, please explain why you consider it to be confidential. If a request for disclosure of the information you have provided is received, your explanation about why you consider it to be confidential will be taken into account, but no assurance can be given that confidentiality can be maintained. An automatic confidentiality disclaimer generated by your IT system will not, of itself, be regarded as binding on the Department. The Department will process your personal data (name and address and any other identifying material) in accordance with the Data Protection Act 1998, and in the majority of circumstances, this will mean that your personal data will not be disclosed to third parties. Please tick if you want us to keep your response confidential. Reason for confidentiality: Name Organisation (if applicable) Address: Pam Jobbins Newcastle CVS Higham House, Higham Place, Newcastle upon Tyne, NE1 8AF If your enquiry is related to the policy content of the consultation you can telephone: or Measure.CONSULTATION@childpovertyunit.gsi.gov.uk

3 If you have a query relating to the consultation process you can contact the CYPFD Team by telephone: or via the Department's 'Contact Us' page. Please select the category that best describes you as a respondent. X Voluntary and community sector Central Government Family/organisation representing families and children Local authority Research body/academic Social enterprise Practitioner working with children/families Public bodies and named partners in the Child Poverty Act Other Please Specify:

4 SECTION TWO: POTENTIAL DIMENSIONS 1 Are there dimensions, other than those proposed in the consultation document, we should consider for inclusion in a multidimensional measure of child poverty? X Yes No Not Sure Whilst we welcome the more nuanced understanding that would be gained by consideration of the proposed dimensions, clarity between the causes of poverty, drivers and risk factors for poverty, and level, impact and outcome of poverty should be strengthened. We are concerned that a multi-dimensional tool that produces a single figure could mask the complex causes and impacts of poverty over time on people s lives. We welcome the proposed data collection that would enhance our understanding of the impact of poverty, but there is a need to also retain the existing four separate measures under the Child Poverty Act 2010: Relative poverty Absolute poverty Persistent poverty Material deprivation Levels of child poverty are predicted to rise exponentially; it is of key importance that any new system of measuring is comparable with the previous system, over time, and also compatible with international measures. The Act places duties on local authorities to reduce child poverty and mitigate the effects of it on communities, families and children, enabling them to break out of cycles of poverty and disadvantage and achieve their full potential. Many of the proposed dimensions will enable public policy to be directed towards ameliorating the impact of poverty and providing a safety net to those at risk of poverty. Free school meals Eligibility for and take up of free school meals should be a dimension. It needs to be eligibility as well as take up, as take up of free schools meals is a lot lower than it should be as there is a stigma attached to living in poverty and taking free school meals and poor children are often bullied at school. Free school meals can be a stigmatising service if the meal is different to the other meals

5 Welfare benefit system sanctions and penalties The impact of punitive sanctions for minor issues such as being late for an appointment should be measured; it will be a feature of poverty but may be masked by assumed benefit income levels. Sanctions are also likely to precipitate a family into the use of high APR credit, loan sharks etc. Poverty premium Save the Children fund estimate that poorer families often pay a poverty premium of 1,280 per year for goods and services. This is due to different tariffs for gas and electricity, higher interest for loans and purchases and higher insurance premiums for living in disadvantaged areas. Use of food banks Another feature of increasing poverty, exacerbated by fines and penalties, is the increasing use of food banks by families. The presence, number and usage of food banks could be a measure/indicator. This ties in with free school meals as there is a reported increase of use of food banks in school holidays. Newcastle CVS produced a report on food banks in Newcastle, finding at least 12 where a year before there were none. Visit Welfare benefit reform impact The Institute for Fiscal Studies (IFS) carried out an analysis of the welfare reform and concluded that the changes to tax and benefits are regressive and will reduce the income and quality of life for the worst off. For instance it is estimated that the reforms will affect 2,700 households in Newcastle and remove 83 million from the local economy much of which will have dire impacts on the lives of the poorest children. Housing costs There is a need to include a measure of housing costs in the income measure due to the forthcoming changes as housing benefit is paid in Universal Credit. In future housing costs should be included in the calculation as they will be coming directly out of family incomes from April. Access to transport The poorest and most disadvantaged children and young people do not access activities outside their immediate area and rarely leave it, in contrast to these from affluent backgrounds who can freely travel across a city. Some of this relates to a lack of access to public transport. Child health and wellbeing outcomes and indicators Babies in the poorest families have an almost 10 times higher chance of dying suddenly in infancy than those in the highest income group; some studies link this to breast feeding rates. There is an increase in obesity and overweight children. If the stats are combined with those of children living in disadvantaged

6 areas and income would be an indicator of likely malnutrition, (whilst obesity in affluent areas may not signify malnutrition). In work poverty Income and low paid work should be a measure. Recent research demonstrates the growth of people involved in unstable work in and out of nil hours contracts, flexible, part time and insecure work. When poverty is a feature of working life, always with the threat of being laid off and worklessness, this has an adverse impact on children. In Newcastle 20,000 children, or 34% of Newcastle households with dependent children are living in in work poverty, in households where at least one adult is working. Wage levels are too low. Whilst entering work is generally seen as a solution to child poverty the low paid, low skilled and probably part time work that is available does not lift families out of poverty. The impact of council tax benefit changes and bedroom tax are examples of how benefit system changes will have an adverse impact on low income families. Gender impact Measuring income at a household level does not differentiate between household members, but there is a gender dimension to poverty. Many women in situations of domestic abuse are also financially abused, and do not have access to much of the family income or control over how it is spent; this can mean that children are more materially deprived than others in families on comparable household income. Sometimes following abusive relationships, women report being better off as single parents despite the official drop in income, as they are in control and can spend it to benefit their children. DIMENSION 1: INCOME AND MATERIAL DEPRIVATION 2 a) How should we measure income as a dimension in a future multidimensional measure of child poverty?

7 Levels of child poverty are predicted to become dramatically worse. It is of key importance that any new system of measuring income is comparable with the current relative measure of those with 60% of average income. The 60% measure in Newcastle showed that in 2010 nearly one in three (29.9%) of children lived in poverty, compared to a national average of 21.2%. Whilst it is a relative measure and so if as recently average income has dropped, it appears child poverty has dropped whilst those who are poor have not increased their income; over time it builds a key part of the picture which includes a measure of inequality There is a strong case to retain the current measures of relative, absolute and persistent poverty and of material deprivation as all measure different aspects of poverty and are well used by universities and internationally. The measure of material deprivation should be retained Newcastle CVS produced a report Frozen in the Headlights: being poor in Newcastle in November Housing costs There is a need to include a measure of housing costs in the income measure calculation due to the forthcoming changes when housing benefit will be paid in Universal Credit, and will be affected by the under occupancy penalties, and housing costs will be coming directly out of family incomes. The under-occupancy cuts or bedroom tax will have an impact on household income and should be measured separately (where from April household in social rented housing with more bedrooms than the government says they should have will lose housing benefit of 14% or 25%). For instance in Newcastle recent calculations suggest that over 4,823 households underoccupy by one bedroom and 1,179 by two bedrooms or more. There are not enough alternative properties for people to move to a smaller tenancy Tenants who are affected by this change will have to make up the shortfall when paying their rent. Currently the average additional payments will be 12 per week and 25 per week respectively with some tenants losing 1,700 per year. 2 b) How important is relative and absolute income?

8 X Very important Important Slightly important Not important Not sure Relative and absolute income measure different aspects of the complexity of poverty and as such we need to measure and consider both measures, as both are important to the understanding of the scale and nature of poverty. 3 How does the ownership of assets such as a house affect our understanding of poverty? Measure of assets as well as income could support a more nuanced measure of poverty and liability, although the primary measure of poverty should remain as income level. Assets such as a house would need to be carefully valued. Ownership of a house may be a liability such as if it is in negative equity, or it may be in need of major repairs and is unsalable: in both cases it would not be an asset. 4 How can an income dimension in a multidimensional measure of child poverty avoid the drawbacks associated with a simple income threshold?

9 The drawbacks of a simple income threshold for defining poverty would be avoided by the adoption of Minimum Income Standards which focus on what is regarded as decent inclusive, sufficient and reasonable. This is set out in Joseph Rowntree Foundation: reports that set out a Minimum Income Standard (MIS) for the UK. The MIS for two parents with two children is , for a lone parent is While this is a relative measure of poverty, it is graduated to take account of differing circumstances so a couple do not have an allowance for child care while a single family do. From the JRF presentation: Prevention is better than cure Clean water prevents most diseases better than pills do Adequate minimum incomes is the clean water of policies against poverty A standard for measuring child poverty: Children living in households with disposable incomes and other resources less than are needed to achieve what the population identifies as the minimally adequate level of living for families to be able to experience social inclusion, participation respect and recognition over time DIMENSION 2: WORKLESSNESS 5 How important is worklessness as a dimension in a future multidimensional measure of child poverty? X Very important Important Slightly important Not important Not sure

10 Worklessness or the lack of a well-paid job does cause low income, which is poverty. But it is only one feature, as in-work poverty is very widespread and a major cause of child poverty. Recent research by the University of Teesside found little evidence of any culture of worklessness and no three generation workless families 6 How should worklessness be measured? Low paid work, part time work and insecure work should be a dimension of the measure as we are aware of a growing cycle of moving in and out of low pay and no pay. Work and measures of work should include unpaid work such as that provided by family carers of adult and those looking after children, as well as the long standing wages for housework campaign. 7 Does the length of time for which a household is workless matter for measurement? X Yes No Not Sure

11 It does matter, but in the way that persistent poverty matters and so the measure should remain as persistent poverty. Measuring the length of time that a house hold is workless is likely to give more data for use in public policy and services; the adverse effects are deepened and are compounded over time; resilience is eroded and the ability of individuals to tackle poverty and its impacts are lessened over time. DIMENSION 3: UNMANAGEABLE DEBT 8 How important is unmanageable debt as a dimension in a future multidimensional measure of child poverty? X Very important Important Slightly important Not important Not sure A Tees-side study found that For many poorer households, debt is a constant feature of juggling a low income. With limited access to mainstream credit, such households often turn to high cost credit sources for money and goods including: rent to own stores, catalogues, doorstep lenders and payday loans. A high proportion of the households participating in the study have no bank account, no savings, are unaware of their levels of debt and utilise a range of credit arrangements including payday and logbook loans with APR charges ranging from 437% to 3,113% Locally a Newcastle CVS study of what it is like to be poor* found there are fewer banks and free ATMs in poorer areas, and there is a lack of access to basic bank accounts. * Frozen in the Headlights: being poor in Newcastle

12 9 What aspects of unmanageable debt should we be most concerned about capturing? An aspect to capture in the dimension might be the inclusion of amount of debt relative to income, servicing debt charges, and how much debt there is at high and extortionate APR charges. DIMENSION 4: POOR HOUSING 10 How important is poor housing as a dimension in a future multidimensional measure of child poverty? X Very important Important Slightly important Not important Not sure

13 Poor housing might not be a measure of poverty, as it is a result of poverty. Repairs and management are the responsibility of the landlord; most registered social landlord or local authority social housing should be in decent repair. For people living in private rented accommodation, who maybe are not eligible for social housing due to no recourse or rent arrears, poor housing is a major indicator of the impact of poverty as lived experience, but again is not a measure of poverty itself. Those with sufficient income would most likely be able to find better quality private accommodation. For example, for a family of ten people living in a poorly repaired one bedroom flat, with a low (earned) income and no recourse to public funds, poor housing and overcrowding has a devastating impact on the children. 11 What aspect of poor housing should be captured in a measure? The number of rented properties that do not meet the Minimum Housing Standards, and the number of enforcement actions made against those landlords. In Newcastle there are 27,060 private rented houses and tenancies. Of these, 20,750 or 77% do not meet the standard. 12 How can we consider the impact of where children grow up when measuring child poverty?

14 The impact of poverty, poor housing, is a separate measure to the level of poverty but is essential to measure in order that public policy and services are directed to best effect in reducing the impact of poverty and the risk of being in poverty. Children North East produced a video of their work in 2011 with children and young people who used cameras to record what poverty looks like: much related to poor housing DIMENSION 5: PARENTAL SKILL LEVEL 13 a) How important is parental skill level as a dimension in a future multidimensional measure of child poverty? X Very important Important Slightly important Not important Not sure 13 b) What level of skills matter?

15 14 How can we best capture parental skill level in a new child poverty measure? DIMENSION 6: ACCESS TO QUALITY EDUCATION

16 15 What impact does attending a failing school have on a child's experience of poverty? X Significant impact Some impact Little impact No impact Not sure 16 What impact does attending a failing school have on a child's life chances? X Significant impact Some impact Little impact No impact Not sure 17 How should access to quality education be measured?

17 Access to quality education should be measured by comparing attainment of children eligible for and in receipt of free school meals and those not eligible for free school meals. Poor education is a result of poor services and provision; while poor people do tend to receive poor services they are not a measure of poverty itself. Though we recognise that those with enough income may be able to move to areas with better schools. DIMENSION 7: FAMILY STABILITY 18 How important is family stability as a dimension in a future multidimensional measure of child poverty? X Very important X Important Slightly important Not important Not sure Good quality family relationships are very important to children and young people. But good quality must not be confused with stable and a return to the days of social services forcing women to stay in violent relationships, which also was harmful to children. Newcastle Children s Trust and Newcastle Safeguarding Children Board Annual Conference took place in November The presentations included the impact on children of living in families where there is domestic abuse, and pictures drawn by children and quotes as they speak about their situation and domestic abuse. Visit

18 19 How important is the long term involvement of both parents to their child's experience of poverty and life chances? X Very important Important Slightly important Not important Not sure 20 How important is the presence of a father to a child's experience of poverty and life chances? Very important X Important Slightly important Not important Not sure There are complex aspects to family stability, breakdown, quality parental relationships, and poverty. The proactive quality involvement of fathers in children s lives will increase their resilience and improve life chances, both when together as two parents, and following divorce or separation, while the loss of either parent from their lives will have negative impacts on children. In situations of domestic violence the continuing involvement of the perpetrator, usually the father may be harmful. Research shows that in lesbian mother households the absence of a father

19 does not adversely impact on life chances. It is also well documented that women and children have a decrease in income following divorce while men tend to have an increase; the active involvement of fathers should include financial contribution and child maintenance payments. 21 Which experiences associated with family stability should be captured in a measure? DIMENSION 8: PARENTAL HEALTH 22 How should we recognise young carers in a multidimensional measure of child poverty?

20 Comments Young carers should be protected from inappropriate caring, which means more support for their parents and a whole family approach by public services. Adult assessments should include a question about parenting responsibilities. Schools should ask about caring when considering absences and poor attainment. 23 How should we recognise parental drug and alcohol dependence and mental health conditions in a multidimensional measure of child poverty? Whilst the recent public response to the survey highlights alcohol addiction as a cause of child poverty, it is also the case that there are many children living in poverty whose parents do not have substance misuse issues. There are also children whose parents are addicted to substance misuse and who for many years are able to retain employment and are not poor. The numbers of adults misusing alcohol are so high that they are well above the levels of children living in poverty. Most Serious Care Reviews of children involve adults who are misusing substances, or where there is domestic violence and abuse, or there are mental health issues. 24 How can parental disability and general poor parental health be reflected in a multidimensional measure of child poverty?

21 A whole family approach by public services, with adult assessments including a question about parenting responsibilities. A recent study of BME maternal poverty on Tyneside found that women have less access to material resources and access to money. While the report did not find a correlation between household income and child deprivation, suggesting that women often went without to ensure their children did not, maternal poverty and its resulting anxiety and depression was likely to have an impact on quality of parenting. SECTION 3: CREATING A MULTIDIMENSIONAL MEASURE 25 Are there criteria, other than those listed in Section 3 of the consultation document that we should evaluate a new measure against? X Yes No Not Sure Young people place a strong emphasis on access to transport and access to healthy food not fast food, as well as support to stay in education such as that previously provided by the Educational Maintenance Allowance. We suggest income level could be correlated to the tracked indicators and outcomes of children s health and wellbeing over time Poverty is a cause of some of the proposed dimensions, such as poor housing. A measure of the impact of poverty on life chances would be useful but is not the same as a measure of poverty. The expected rise in child poverty is largely because of debt and benefit changes as well as low paid insecure work, which should be taken account of in the dimensions for measuring poverty.

22 26 In creating a new measure should any dimension be a gateway? X Yes No Not Sure Free school meals Eligibility for free school meals should be a gateway measure. Low income e.g. Minimum Income Standard Minimum Income Standards which focus on what is regarded as decent inclusive, sufficient and reasonable. This is set out in Joseph Rowntree Foundation: reports that set out a Minimum Income Standard (MIS) for the UK. The MIS for two parents with two children is , for a lone parent is It is graduated to take account of differing circumstances so a couple do not have an allowance for child care while a single family do. 27 Should the indicators be weighted and, if so, what factors should influence the choice of weighting? Yes No Not Sure

23 Minimum Income Standards which focus on what is regarded as decent inclusive, sufficient and reasonable 28 Which indicators should be weighted more or less? Minimum Income Standards which focus on what is regarded as decent inclusive, sufficient and reasonable 29 How could we measure child poverty at the local level?

24 Use of Minimum Income Standards which focus on what is regarded as decent inclusive, sufficient and reasonable The numbers of children eligible for and in receipt of free school meals, along with signifiers such as food banks would be a local measure 30 How should we check the robustness and simplicity? By use of Minimum Income Standards which focus on what is regarded as decent inclusive, sufficient and reasonable 31 What would you use a multidimensional measure of child poverty for?

25 To track the performance of government and public policy in reducing the growing number of children living in poverty, in ameliorating the impact of poverty and in providing a safety net to those at risk of poverty. A multidimensional measure of child poverty might also capture the structural barriers families in poverty face, particularly in areas of industrial decline Newcastle CVS produced a report Frozen in the Headlights: being poor in Newcastle in November, visit Future measures of child poverty will be used to inform future such work. 32 Please use this space for any other comments you would like to make. 33 Please let us have your views on responding to this consultation (e.g. the number and type of questions, whether it was easy to find, understand, complete etc.).

26

27 Thank you for taking the time to let us have your views. We do not intend to acknowledge individual responses unless you place an 'X' in the box below. Please acknowledge this reply X Here at the Department for Education we carry out our research on many different topics and consultations. As your views are valuable to us, would it be alright if we were to contact you again from time to time either for research or to send through consultation documents? X Yes No All DfE public consultations are required to meet the Cabinet Office Principles on Consultation The key Consultation Principles are: departments will follow a range of timescales rather than defaulting to a 12-week period, particularly where extensive engagement has occurred before departments will need to give more thought to how they engage with and consult with those who are affected consultation should be digital by default', but other forms should be used where these are needed to reach the groups affected by a policy; and the principles of the Compact between government and the voluntary and community sector will continue to be respected. Responses should be ed to the relevant consultation box. However, if you have any comments on how DfE consultations are conducted, please contact Carole Edge, DfE Consultation Coordinator, tel: / carole.edge@education.gsi.gov.uk Thank you for taking time to respond to this consultation. Completed questionnaires and other responses should be sent to the address shown below by 15 February Send by post to: CYPFD Team, Department for Education, Area 1C, Castle View House, East Lane, Runcorn, Cheshire WA7 2GJ or to: Measure.CONSULTATION@childpovertyunit.gsi.gov.uk