Why Money Matters; extra money for parents improves children’s lives

Experts on child poverty today told the Chancellor of the Exchequer, Alistair Darling, that extra government money is the best way to improve the lives of children in poverty

Monday 25 February 2008

Why Money Matters, a major new book on UK child poverty, reveals that the Government is set to break its promise to halve child poverty by 2010 unless it invests significant cash now. The book is published by Save the Children as part of the Campaign to End Child Poverty, and includes contributions from David Blunkett and the TUC’s Brendan Barber.

It contains first-hand descriptions of the crippling effects of poverty on children in the UK, and presents research showing government investment significantly improves the lives of the poorest families.

The effects of poverty

David Blunkett, who wrote the foreward to the book has said:

“As anyone who has ever lived with it knows, there is nothing romantic, simple or desirable about the reality of poverty. This book contains the voices of ordinary people living in poverty in 21st century Britain, vivid descriptions of what their lives are actually like and the stress, misery and ill-health that their poverty causes. There is no longer a discussion as to whether we should tackle child poverty but, rather, how - and how quickly”.

Money is key

The book, edited by Jason Strelitz and Prof. Ruth Lister, directly challenges the conventional wisdom that downplays the role of money in child poverty.

Jason Strelitz, Save the Children’s child poverty spokesperson has said:

“It is well-known that children living in poverty suffer from an array of disadvantages, in their education, health, housing and mental well-being. But what this research shows, is that these problems are a direct consequence of a low income. If you increase the family’s income, you improve everything else as well”.

Poorest families can be trusted with money

The new research also provides compelling evidence that the poorest families do not waste extra money. In one chapter, author Fran Bennett looks at the expenditure of families since 1999. She shows that when the poorest families have more money, they tend to spend it on essential things for their children.

“Typically, the poorest families spend extra money on basic necessities for their children, like food and clothing. If you raise a family’s income you will improve a child’s life across the board,” said Jason Strelitz.

Hilary Fisher, Director of the Campaign to End Child Poverty, added:

“This year, the Government has the opportunity to fulfil the boldest political pledge of a generation. To keep its promise to halve child poverty by 2010, the Government needs to invest £4 billion by March 2009. This research shows that it will be money well spent”.

Finding a job is not always enough

The research also reveals that finding a job is often not enough to solve poverty - authors Lesley Hoggart and Sandra Vegeris show that half of all the children in poverty live in a household where at least one person is in work.

Brendan Barber said:

“The connection between low-pay, low status and exploitation is more than a theory, it is a reality across this country. Any concerted effort to tackle poverty and social exclusion will have to add in-work poverty to the list of evils that must be tackled”.

David Blunkett will call for the Government to be “much more ambitious” in raising the National Minimum Wage, and subsequent adjustments to Tax Credits, from the current 37% to 50% of comparable wage levels. This would bring the UK in line with EU countries as varied as Ireland, Luxembourg, Malta and Bulgaria.

-ENDS-

For more information, or for interview requests for David Blunkett, Brendan Barber or Jason Strelitz, please contact the Save the Children media office on 020 7012 6841.

The book launch will be held at:

Wilson Room, Portcullis House, Westminster, 5-6 pm, 26th February 2008

Notes to Editors

  • Save the Children is the world’s independent children’s charity. We’re outraged that millions of children are still denied proper healthcare, food, education and protection. We’re working flat out to get every child their rights and we’re determined to make further, faster changes. How many? How fast? It’s up to you.
  • For more information about Save the Children, please visit the website: http://www.savethechildren.org.uk/
  • The book also contains a comment from the Chancellor of the Exchequer, Alistair Darling.
  • As part of the Campaign to End Child Poverty, Save the Children is calling for a £4 billion investment for the Government to meet its target of halving child poverty by 2010 http://www.endchildpoverty.org.uk/
  • As part of the £4 billion investment, Save the Children is calling for seasonal grants in summer and winter, of £100 per child, for the poorest families, to help ease the pressure on these families at the most expensive times of year.
  • Save the Children today also announces a new partnership with FirstGroup. Six buses are branded with anti-child-poverty messages.

Benedict Dempsey
Media Manager - Campaigns, Policy and Investigations
Save the Children
1 St John’s Lane, London EC1M 4AR
+44 (0) 20 7012 6852
+44 (0) 7880 747575 (mobile)