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Child poverty

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From: The Socialist issue 689, 12 October 2011: Cameron’s big ‘them and us’ society

Search site for keywords: Poverty - Child poverty - Government - Children

Con-Dems' policies increase poverty

Dave Carr

Living standards are set to fall and poverty will massively increase in the coming years as a result of the coalition government's tax and benefit counter-reforms. According to the Institute of Fiscal Studies (IFS) nearly one in four children in the UK will live in absolute poverty by 2020.

Using measures of poverty defined in the Child Poverty Act (2010) the IFS calculates that "the period between 2009-10 and 2012-13 is likely to be dominated by a large decline in real incomes across the income distribution."

The report continues: "Absolute poverty is forecast to rise by about 600,000 children and 800,000 working-age adults. Median income is expected to fall by around 7% in real terms, which would be the largest three-year fall for 35 years.

"The net direct effect of the coalition government's tax and benefit changes is to increase both absolute and relative poverty. This is because other changes, such as the switch from RPI- to CPI- indexation of means-tested benefits, more than offset the impact on poverty of Universal Credit.

"Absolute and relative child poverty are forecast to be 23% and 24% in 2020-21 respectively. These compare to the targets of 5% and 10%, set out in the Child Poverty Act (2010) and passed with cross-party support. This would be the highest rate of absolute child poverty since 2001-02 and the highest rate of relative child poverty since 1999-2000."

But at the same time as the Con-Dems are further squeezing the working poor and the unemployed to pay for the capitalist crisis, the government's business-friendly policies have allowed the super-rich to get richer. The 1,000 richest individuals in the UK saw their collective wealth soar by a staggering £60.2 billion in 2011 (an 18% rise over 2010), to an unbelievable £395.8 billion.

Clearly, inequality and an ever-widening wealth gap go hand in hand with capitalism. And it shows that a fundamental shift in wealth and power from the ruling elite to the majority - ie socialism - is essential to end poverty and inequality.

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Finance appeal

The coronavirus crisis has laid bare the class character of society in numerous ways. It is making clear to many that it is the working class that keeps society running, not the CEOs of major corporations.

The results of austerity have been graphically demonstrated as public services strain to cope with the crisis.

The government has now ripped up its 'austerity' mantra and turned to policies that not long ago were denounced as socialist. But after the corona crisis, it will try to make the working class pay for it, by trying to claw back what has been given.

The Socialist Party's material is more vital than ever, so we can continue to report from workers who are fighting for better health and safety measures, against layoffs, for adequate staffing levels, etc.
When the health crisis subsides, we must be ready for the stormy events ahead and the need to arm workers' movements with a socialist programme - one which puts the health and needs of humanity before the profits of a few.