IDEAS home Printed from https://ideas.repec.org/p/cep/sticas/case38.html
   My bibliography  Save this paper

How Effective is the British Governments Attempt to Reduce Child Poverty?

Author

Listed:
  • David Piachaud
  • Holly Sutherland

Abstract

The new Labour Government in Britain has made the reduction of child poverty one of its central objectives. This paper describes the specific initiatives involved in Labour's approach and weighs them up in terms of their potential impact. After setting out the extent of the problem of child poverty, the causes are discussed and Britain's problem is set in international perspective. The impact on child poverty of policies designed to raise incomes directly is analysed using micro-simulation modelling. A major emphasis of current policy is on the promotion of paid work, and we explore the potential for poverty reduction of increasing the employment of parents. We find that at its maximum, increasing paid work could roughly double the reduction in child poverty achieved by tax and benefit policies alone - a combined decrease of 1.85 million children in poverty. However, a more realistic forecast of increases in parental employment suggests that the number of children in poverty may be reduced by 1 million by 2002. The policies that address long-term disadvantage are also discussed and finally the whole programme is assessed and future strategy is considered.

Suggested Citation

  • David Piachaud & Holly Sutherland, 2000. "How Effective is the British Governments Attempt to Reduce Child Poverty?," CASE Papers case38, Centre for Analysis of Social Exclusion, LSE.
  • Handle: RePEc:cep:sticas:case38
    as

    Download full text from publisher

    File URL: http://sticerd.lse.ac.uk/dps/case/cp/CASEpaper38.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bradbury, Bruce & Jenkins, Stephen P. & Micklewright, John, 2000. "Child poverty dynamics in seven nations," ISER Working Paper Series 2000-39, Institute for Social and Economic Research.
    2. Giovanni Andrea Cornia & Richard Strickland, 1990. "Rural Differentiation, Poverty and Agricultural Crisis in sub-Saharan Africa: Toward an appropriate policy response," Papers iopeps90/48, Innocenti Occasional Papers, Economic Policy Series.
    3. Redmond,Gerry & Sutherland,Holly & Wilson,Moira, 1998. "The Arithmetic of Tax and Social Security Reform," Cambridge Books, Cambridge University Press, number 9780521632249, December.
    4. Immervoll H & Mitton L & O'donoghue C & Sutherland H, 1999. "Budgeting for fairness? The distributional effects of three Labour Budgets," Microsimulation Unit Research Notes MU/RN/32, Microsimulation Unit at the Institute for Social and Economic Research.
    5. Bruce Bradbury & Markus Jantti, 1999. "Child Poverty across Industrialized Nations," Papers iopeps99/70, Innocenti Occasional Papers, Economic Policy Series.
    6. Olga Cantó Sanchez & Magda Mercader-Prats, 1998. "Child Poverty in Spain: What can be said?," Papers iopeps98/24, Innocenti Occasional Papers, Economic Policy Series.
    7. Teimuraz Gogishvili & Joseph Gogodze & Amiran Tsakadze, 1996. "The Transition in Georgia: From collapse to optimism," Papers iopeps96/11, Innocenti Occasional Papers, Economic Policy Series.
    8. Pudney, Stephen & Sutherland, Holly, 1994. "How reliable are microsimulation results? : An analysis of the role of sampling error in a U.K. tax-benefit model," Journal of Public Economics, Elsevier, vol. 53(3), pages 327-365, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Immervoll, Herwig & O'Donoghue, Cathal, 2001. "Towards a multi purpose framework for tax benefit microsimulation," EUROMOD Working Papers EM2/01, EUROMOD at the Institute for Social and Economic Research.
    2. Holly Sutherland & Christine Lietz & Horacio Levy, 2005. "Alternative Tax-benefit Strategies to Support Children in the European Union. Recent Reforms in Austria, Spain and the United Kingdom," Papers inwopa05/33, Innocenti Working Papers.
    3. Hélène Périvier, 2003. "Les mesures d’incitation au travail des personnes peu qualifiées," Sciences Po publications info:hdl:2441/3861, Sciences Po.
    4. Dickens & David T. Ellwood, 2004. "Whither Poverty in Great Britain and the United States? The Determinants of Changing Poverty and Whether Work Will Work," NBER Chapters,in: Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980-2000, pages 313-370 National Bureau of Economic Research, Inc.
    5. Hélène Périvier, 2003. "Les mesures fiscales d'incitation au travail des personnes non qualifiées," Revue de l'OFCE, Presses de Sciences-Po, pages 281-336.
    6. Herwig Immervoll & Horacio Levy & José Ricardo Nogueira & Cathal O´Donoghue & Rozane Bezerra de Siqueira, 2005. "The Impact of Brazil´s Tax-Benefit System on Inequality and Poverty," Ibero America Institute for Econ. Research (IAI) Discussion Papers 117, Ibero-America Institute for Economic Research.
    7. repec:spo:wpecon:info:hdl:2441/3464 is not listed on IDEAS
    8. Sutherland, H., 2001. "The National Minimum Wage and In-work Poverty," Cambridge Working Papers in Economics 0111, Faculty of Economics, University of Cambridge.
    9. Herwig Immervoll & Cathal O'Donoghue, 2009. "Towards a multi-purpose framework for tax-benefit microsimulation: lessons from EUROMOD," International Journal of Microsimulation, International Microsimulation Association, vol. 2(2), pages 43-54.
    10. Mike Brewer & Paul Gregg, 2001. "Eradicating child poverty in Britain: welfare reform and children since 1997," IFS Working Papers W01/08, Institute for Fiscal Studies.
    11. Levy, Horacio & Lietz, Christine & Sutherland, Holly, 2006. "Alternative Tax-Benefit Strategies to Support Children in the European Union. Recent Reforms in Austria, Spain and the UK," Economics Series 185, Institute for Advanced Studies.
    12. Véronique Delarue, 2000. "Le Working Families Tax Credit, un nouveau crédit d'impôt pour les familles de travailleurs à bas revenus au Royaume-Uni," Économie et Statistique, Programme National Persée, vol. 335(1), pages 47-61.
    13. Jenkins, Stephen P. & Schluter, Christian, 2001. "Why are child poverty rates higher in Britain than in Germany? a longitudinal perspective -working paper-," ISER Working Paper Series 2001-16, Institute for Social and Economic Research.
    14. repec:spo:wpecon:info:hdl:2441/3861 is not listed on IDEAS

    More about this item

    Keywords

    Child poverty; tax and benefit policy; welfare-to-work;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cep:sticas:case38. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://sticerd.lse.ac.uk/case/_new/publications/default.asp .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.