Child Poverty in Britain

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Relative child poverty rose sharply over the period 1979–97/98 and has since fallen by about half a million (4 percentage points). Absolute poverty changed little between 1979 and 1997/98 but has fallen sharply since then. Absolute poverty fell by 1.7 million between 1997/98 and 2001/02, with a half million fall in the last year alone. Changes in work patterns, wages and demographics all contributed to rising relative child poverty between 1979 and 1997/98. Demographics and work changes were responsible for the rise in absolute poverty. Benefit changes offset some of these increases. The absence of work was particularly severe on children in lone parent families. The Blair government’s welfare reforms raised work incentives and resulted in more work among low income families with children. These increases in work had modest effects in reducing child poverty and much of the reduction is attributable to benefit changes — work itself is not enough to pull many families over the poverty line. The Clinton administration introduced a range of welfare to work reforms in the US, increasing aid to those in work but cutting it to those out of work. Child poverty there has fallen but not as sharply. Increased work and demographic change have been the driving forces in poverty reductions. Median incomes, and hence the poverty line have increased rapidly and in conjunction further small increases in wage inequality and demographic shifts have meant that the government is making slower progress in reducing relative poverty than anticipated. While much progress has been made, current and planned policy reforms may not raise the incomes of the poor enough relative to median income to achieve the sort of poverty reductions needed to meet the stated poverty targets.