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Policy options for reducing child poverty


Barnado's logo.

The aim of this report has been to move forward the debate on whether and how the Government can meet its 2010 PSA target to halve child poverty.  Barnardo’s will be using the findings of this analysis to influence its discussion with the Government in the run up to the pre-budget report 2008.

The report:

  • Analyses the impact of the 2008 10p compensation package on child poverty
  • Recommends a recycling of resources already spent supporting families
  • Suggests three policy options, any of which could help the Government to meet their 2010 target to halve child poverty

The key recommendations from the report are:

  • The Government should not extend the 10p tax rate compensation package announced on May 13th 2008 into the next financial year. Essentially it does nothing to alleviate child poverty. This would save the Government £2.7 billion.
  • The Government should amend the tax credit system so that families who are relatively better-off – for example those on incomes of £40,000 to £50,000 a year – no longer qualify for help. This would save the Government £1.35 billion which should be recycled to help poorer families.
  • The Government should redirect the £2.7 billion spent this year on the 10p tax rate compensation towards alleviating child poverty. It should also recycle the £1.35 billion currently spent on child tax credits for relatively better off families to those who are living in poverty. We demonstrate three different ways this can be done, any of which will help the Government to meet its 2010 target.

Deloitte is delighted to have worked with Barnardo’s to produce this analysis of policy options to reduce child poverty in the UK. Child poverty in the UK impacts the lives of 2.9 million young people.  It is vitally important that child poverty is recognised as a crucial issue by political parties across the western world, following the leadership shown in the UK on this issue.

Deloitte has a long standing commitment to supporting the disadvantaged in society.  We are proud of our philanthropic tradition which embraces charitable contributions from The Deloitte Foundation and our people, through to using the skills and talents of our firm to deliver ground-breaking work for leading charities, helping them improve their services for young people, and an extensive volunteering programme to help those in need maximise their life chances.

Whilst we know that our monetary support makes a big difference, it’s equally important to Deloitte that the skills and talents of over 11,000 people in our firm are used to help those in need, truly fulfilling our commitment to leadership in society.  It is this understanding and genuine commitment from Deloitte that puts us at the leadership level in corporate contributions to charitable and philanthropic causes in the UK.

Download a summary of the report (PDF, 1087kb)

Download the full report -  How to halve child poverty by 2010: Options for redirecting resources to reduce child poverty (PDF, 1132kb)

Some supporting research for this report was carried out by the Institute for Fiscal Studies;  further details can be found here.

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