Select Committee · Work and Pensions Committee

Children in poverty: Measurement and targets

Status: Closed Opened: 12 Jan 2021 Closed: 2 Feb 2022 11 recommendations 26 conclusions 1 report

This inquiry is looking at children in poverty. This is a complex subject, so the Committee’s work will be in several parts. For the first part of the inquiry, we are interested in finding out: - how child poverty can most accurately be measured and defined - what the impact of child poverty is, and …

Reports

1 report
Title HC No. Published Items Response
Third Report - Children in poverty: Measurement and targets HC 188 22 Sep 2021 37 Responded

Recommendations & Conclusions

37 items
1 Conclusion Third Report - Children in poverty: Mea…

The Office for Statistics Regulation has recently made recommendations for improving income-based poverty statistics.

The Office for Statistics Regulation has recently made recommendations for improving income-based poverty statistics. DWP has said that it is considering its response to these recommendations, working with others in Government.

Government response. The Cross-Government Income and Earnings Coherence Steering Group, chaired by the ONS, will respond to OSR’s recommendations, and develop a workplan. The first version of the workplan was published on 14 October. The Income and Earnings Coherence Steering Group will …
Department for Work and Pensions
2 Recommendation Third Report - Children in poverty: Mea…

We recommend that DWP publishes a detailed and full response to all the recommendations made...

We recommend that DWP publishes a detailed and full response to all the recommendations made by the Office for Statistics Regulation in its review of income- based poverty statistics by March 2022. (Paragraph 11) Defining child poverty, identifying its causes and consequences

Government response. The Cross-Government Income and Earnings Coherence Steering Group, chaired by the ONS, will respond to OSR’s recommendations, and develop a workplan. The first version of the workplan was published on 14 October. The Income and Earnings Coherence Steering Group will …
Department for Work and Pensions
3 Conclusion Third Report - Children in poverty: Mea…

Poverty is at least partly about a lack of material resources, and most people consider...

Poverty is at least partly about a lack of material resources, and most people consider income to be a core measure of poverty. But definitions of poverty cannot be entirely divorced from the society in which people live. A ‘poverty line’ should relate to the normal expectations of, and the …

Government response. 2016. To keep these poverty measures aligned with what is considered normal or essential today, DWP should review the appropriateness of the base year used in the Government’s ‘absolute low income’ measure and the relevance of questions asked about goods …
Department for Work and Pensions
4 Conclusion Third Report - Children in poverty: Mea…

We heard compelling evidence describing why a lack of material resources in childhood matters and...

We heard compelling evidence describing why a lack of material resources in childhood matters and the impact it has on child development and their future outcomes. But defining poverty in income terms does not mean that the Government’s response to poverty should neglect the underlying causes of it. A holistic …

Government response. DWP should consolidate its statistical publications on income-related poverty and wider social deprivations to create a single dashboard of indicators of child poverty which logically describe the evidence-based causes and consequences of child poverty. DWP should, in doing so, be …
Department for Work and Pensions
5 Conclusion Third Report - Children in poverty: Mea…

DWP’s analysis of the drivers of child income poverty from 2014 concluded that a key...

DWP’s analysis of the drivers of child income poverty from 2014 concluded that a key factor was the quantity and quality of paid work in families. Since this analysis, the labour market has continued to evolve and more children in income poverty are now in working families. We have seen …

Government response. Tackling poverty, especially child poverty, is a cross-government priority. DWP is one of several producers of statistical publications on social deprivations and poverty. Other departments including DfE, DHSC and the ONS have responsibility in this space as tackling poverty requires …
Department for Work and Pensions
6 Recommendation Third Report - Children in poverty: Mea…

We recommend that DWP should commission a systematic review of the latest evidence on child...

We recommend that DWP should commission a systematic review of the latest evidence on child income poverty, its definitions, its causes and its consequences. It should use this review to prompt a better dialogue with the public, charities and others, and inform future cross-government work on measures to address child …

Government response. Secretary of State’s focus on aspects of material deprivation will inform its approach to poverty measurement. This area of work is still under consideration.
Department for Work and Pensions
7 Conclusion Third Report - Children in poverty: Mea…

Poverty measurement is important because it involves translating abstract concepts and definitions into very concrete...

Poverty measurement is important because it involves translating abstract concepts and definitions into very concrete expressions of who is poor and who needs extra help. Backed by a legal obligation to do so, the UK Government measures and reports Children in poverty: Measurement and targets 51 child poverty through a …

Government response. The Government will continue to publish all four measures of children in low income as set out in the Welfare Reform and Work Act 2016 in line with its statutory responsibilities. Analysts continue to review the statistical validity of the …
Department for Work and Pensions
8 Conclusion Third Report - Children in poverty: Mea…

Ministers have made clear to us that they consider absolute income poverty to be the...

Ministers have made clear to us that they consider absolute income poverty to be the most useful measure. They have been dismissive of the Government’s own measure of relative income poverty. But both measures have advantages and disadvantages. The Secretary of State is of course right to say that a …

Government response. As part of a new cross-departmental strategy, the Government should set clear, ambitious and measurable objectives and plans for reducing child poverty. The Government should report to Parliament annually on progress in implementing its child poverty objectives and plans. The …
Department for Work and Pensions
9 Conclusion Third Report - Children in poverty: Mea…

Ministers should reaffirm their commitment to measuring poverty through all four measures of children in...

Ministers should reaffirm their commitment to measuring poverty through all four measures of children in low income as set out in the Welfare Reform and Work Act

Government response. The Government will continue to publish all four measures of children in low income as set out in the Welfare Reform and Work Act 2016 in line with its statutory responsibilities. Analysts continue to review the statistical validity of the …
Department for Work and Pensions
10 Conclusion Third Report - Children in poverty: Mea…

The Government legislated for the statutory monitoring of worklessness and educational attainment indicators in the...

The Government legislated for the statutory monitoring of worklessness and educational attainment indicators in the Welfare Reform and Work Act 2016. It reports performance against these indicators as part of a wider set of ‘Helping Workless Families’ indicators. The Government argued that indicators of worklessness and educational attainment directed attention …

Government response. Department of Health and Social Care to inform how it might better estimate the health and well-being impacts of future changes to social security affecting children and families. This Government remains committed to publishing its annual Households Below Average Income …
Department for Work and Pensions
11 Recommendation Third Report - Children in poverty: Mea…

We recommend that the Department for Work and Pensions broadens the scope of its ‘Helping...

We recommend that the Department for Work and Pensions broadens the scope of its ‘Helping workless families indicators’ to measure the quantity and quality of work in families and communities, and the quality of family support so that they better address the challenge of in-work poverty and the additional stresses …

Government response. DWP should write to us by June 2022 updating us on its progress (a) in working with the Office for National Statistics, Administrative Data UK and other government departments to develop new data matching and analysis programmes to understand better …
Department for Work and Pensions
12 Conclusion Third Report - Children in poverty: Mea…

DWP’s key collections of income-related poverty and wider social deprivation statistics are all published separately.

DWP’s key collections of income-related poverty and wider social deprivation statistics are all published separately. The Office for National Statistics also publishes separate statistics on household income. There is no consolidated publication and no clear narrative setting out how the measures all link together. The current arrangements are a missed …

Government response. Tackling poverty, especially child poverty, is a cross-government priority. DWP is one of several producers of statistical publications on social deprivations and poverty. Other departments including DfE, DHSC and the ONS have responsibility in this space as tackling poverty requires …
Department for Work and Pensions
13 Conclusion Third Report - Children in poverty: Mea…

DWP should consolidate its statistical publications on income-related poverty and wider social deprivations to create...

DWP should consolidate its statistical publications on income-related poverty and wider social deprivations to create a single dashboard of indicators of child poverty which logically describe the evidence-based causes and consequences of child poverty. DWP should, in doing so, be careful to keep its core income-related measures of poverty separate …

Government response. Tackling poverty, especially child poverty, is a cross-government priority. DWP is one of several producers of statistical publications on social deprivations and poverty. Other departments including DfE, DHSC and the ONS have responsibility in this space as tackling poverty requires …
Department for Work and Pensions
14 Conclusion Third Report - Children in poverty: Mea…

The Social Metrics Commission has proposed a new approach to measuring poverty which has widespread...

The Social Metrics Commission has proposed a new approach to measuring poverty which has widespread support. It was therefore welcome that the Government announced in 2019 that it would develop supplementary experimental statistics building on the Commission’s methodology. But that work seems to have ground to a halt. This was …

Government response. This area of work is still under consideration.
Department for Work and Pensions
15 Recommendation Third Report - Children in poverty: Mea…

DWP should set out clearly, in response to this report, what work it now plans...

DWP should set out clearly, in response to this report, what work it now plans to do on the development of supplementary experimental statistics using the SMC’s methodology and a timescale for completing this work. It should also explain how the Secretary of State’s focus on aspects of material deprivation …

Government response. Tackling poverty, especially child poverty, is a cross-government priority. DWP is one of several producers of statistical publications on social deprivations and poverty. Other departments including DfE, DHSC and the ONS have responsibility in this space as tackling poverty requires …
Department for Work and Pensions
16 Conclusion Third Report - Children in poverty: Mea…

The UK can learn from international approaches to poverty measurement, including from those countries and...

The UK can learn from international approaches to poverty measurement, including from those countries and organisations which have developed multidimensional measurement approaches that bring together measures of income poverty and wider social deprivations. Some multidimensional approaches blend measures of income poverty with wider deprivations to produce a single index. There …

Government response. The Government is committed to a sustainable, long-term approach to tackling poverty and reports progress to Parliament in several ways. As set out in the Welfare Reform and Work Act 2016, the Government publishes key measures of child poverty annually …
Department for Work and Pensions
17 Conclusion Third Report - Children in poverty: Mea…

DWP should continue to liaise with other countries, universities, and international organisations in developing a...

DWP should continue to liaise with other countries, universities, and international organisations in developing a single dashboard for reporting income-related measures of poverty and the wider social deprivations on which the Government currently reports. (Paragraph 66) A strategy for child poverty

Government response. Tackling poverty, especially child poverty, is a cross-government priority. DWP is one of several producers of statistical publications on social deprivations and poverty. Other departments including DfE, DHSC and the ONS have responsibility in this space as tackling poverty requires …
Department for Work and Pensions
18 Conclusion Third Report - Children in poverty: Mea…

We heard strong views that the UK now needs a cross-government strategy for child poverty.

We heard strong views that the UK now needs a cross-government strategy for child poverty. We welcome the creation of a new Inter-Ministerial Group to identify practical measures to address the cost of living. But a focus on the cost of living suggests only a partial response to child poverty, …

Government response. The Government is committed to a sustainable, long-term approach to tackling poverty and reports progress to Parliament in several ways. As set out in the Welfare Reform and Work Act 2016, the Government publishes key measures of child poverty annually …
Department for Work and Pensions
19 Recommendation Third Report - Children in poverty: Mea…

The Government should commit to developing and implementing a long-term, cross- departmental strategy to address...

The Government should commit to developing and implementing a long-term, cross- departmental strategy to address child poverty now and in the future. This should be informed by findings from the Inter-Ministerial Group on the cost of living and, more broadly, by the latest evidence on the key drivers of poverty.

Government response. The Government is committed to a sustainable, long-term approach to tackling poverty and reports progress to Parliament in several ways. As set out in the Welfare Reform and Work Act 2016, the Government publishes key measures of child poverty annually …
Department for Work and Pensions
20 Recommendation Third Report - Children in poverty: Mea…

Past income-based targets for child poverty have helped to focus minds across Government.

Past income-based targets for child poverty have helped to focus minds across Government. But, like all targets, they can ‘distort’ the policy response, and some witnesses believed that this happened in the final years of the 2010/11 child poverty target as the emphasis shifted towards income transfers. To counter this …

Government response. The Government is committed to a sustainable, long-term approach to tackling poverty and reports progress to Parliament in several ways. As set out in the Welfare Reform and Work Act 2016, the Government publishes key measures of child poverty annually …
Department for Work and Pensions
21 Recommendation Third Report - Children in poverty: Mea…

As part of a new cross-departmental strategy, the Government should set clear, ambitious and measurable...

As part of a new cross-departmental strategy, the Government should set clear, ambitious and measurable objectives and plans for reducing child poverty. The Government should report to Parliament annually on progress in implementing its child poverty objectives and plans. (Paragraph 84) The quality, timeliness and completeness of child poverty data

Government response. The Government is committed to a sustainable, long-term approach to tackling poverty and reports progress to Parliament in several ways. As set out in the Welfare Reform and Work Act 2016, the Government publishes key measures of child poverty annually …
Department for Work and Pensions
22 Conclusion Third Report - Children in poverty: Mea…

The pandemic has brought into sharp relief the delay in publishing poverty data through DWP’s...

The pandemic has brought into sharp relief the delay in publishing poverty data through DWP’s ‘Households Below Average Income’ statistics. DWP and HMRC have a wealth of administrative data on benefits, tax and earnings. DWP can make better use of these to produce ‘closer to real-time’ information on child income …

Government response. Tackling poverty, especially child poverty, is a cross-government priority. DWP is one of several producers of statistical publications on social deprivations and poverty. Other departments including DfE, DHSC and the ONS have responsibility in this space as tackling poverty requires …
Department for Work and Pensions
23 Recommendation Third Report - Children in poverty: Mea…

Working with HMRC and other UK producers of income statistics, DWP should develop a dashboard...

Working with HMRC and other UK producers of income statistics, DWP should develop a dashboard of child income-related poverty ‘lead’ indicators which are closer to real time and supplement existing survey data sources. DWP should publish this data as part of its child poverty measurement framework.

Government response. Tackling poverty, especially child poverty, is a cross-government priority. DWP is one of several producers of statistical publications on social deprivations and poverty. Other departments including DfE, DHSC and the ONS have responsibility in this space as tackling poverty requires …
Department for Work and Pensions
24 Conclusion Third Report - Children in poverty: Mea…

The 12-month delay in producing income poverty statistics means that DWP data on the proportion...

The 12-month delay in producing income poverty statistics means that DWP data on the proportion of children in low income for the year to March 2021 will not be published until March 2022. We were encouraged to hear that DWP is working with the Department of Health and Social Care …

Government response. This Government remains committed to publishing its annual Households Below Average Income publication in March 2022 which covers the first year of the pandemic, subject to the usual checks on data quality. The large household surveys which inform our poverty …
Department for Work and Pensions
25 Recommendation Third Report - Children in poverty: Mea…

DWP should commission research examining, in depth, the impacts of the pandemic on children living...

DWP should commission research examining, in depth, the impacts of the pandemic on children living in families in low income. It should publish the results of this 54 Children in poverty: Measurement and targets analysis alongside its March 2022 Households Below Average Income statistics. DWP should also publish early findings …

Government response. This Government remains committed to publishing its annual Households Below Average Income publication in March 2022 which covers the first year of the pandemic, subject to the usual checks on data quality. The large household surveys which inform our poverty …
Department for Work and Pensions
26 Conclusion Third Report - Children in poverty: Mea…

DWP has valuable administrative data that can be used to improve understanding of child poverty...

DWP has valuable administrative data that can be used to improve understanding of child poverty and support a better response to it. To make the best use of this resource, DWP will need to collaborate with others in Government, local authorities and academics. However, we have heard significant concerns from …

Government response. As we wrote to you earlier in the year we intend to conduct more detailed research into the possibility of making improvements to existing data shares, including taking into account the costs and benefits of doing so, and attempting to …
Department for Work and Pensions
27 Conclusion Third Report - Children in poverty: Mea…

DWP should liaise with other government departments to identify lessons for how it might take...

DWP should liaise with other government departments to identify lessons for how it might take a more constructive approach to sharing data related to child poverty. DWP should write to us by June 2022 updating us on its progress (a) in working with the Office for National Statistics, Administrative Data …

Government response. As we wrote to you earlier in the year we intend to conduct more detailed research into the possibility of making improvements to existing data shares, including taking into account the costs and benefits of doing so, and attempting to …
Department for Work and Pensions
28 Conclusion Third Report - Children in poverty: Mea…

DWP and the Office for National Statistics both have survey and statistical research projects on...

DWP and the Office for National Statistics both have survey and statistical research projects on income. There is a risk that these overlap, reducing the quality of the overall data collected and contributing to reduced clarity in Government reporting of poverty data.

Government response. The Government continually considers ways to strengthen and improve its statistical publications in line with the UKSA Code of Practice for Statistics, and as detailed in the GSS income and Earnings Coherence work plan and the Cross-Government Income and Earnings …
Department for Work and Pensions
29 Conclusion Third Report - Children in poverty: Mea…

DWP should work with other UK producers of income statistics to co-ordinate the current suite...

DWP should work with other UK producers of income statistics to co-ordinate the current suite of survey and data analysis to strengthen the breadth and depth of work and improve reporting clarity. DWP should write to us by March 2022 setting out the additional steps it has taken to integrate …

Government response. The Government continually considers ways to strengthen and improve its statistical publications in line with the UKSA Code of Practice for Statistics, and as detailed in the GSS income and Earnings Coherence work plan and the Cross-Government Income and Earnings …
Department for Work and Pensions
30 Conclusion Third Report - Children in poverty: Mea…

Gaps in data on inescapable costs that households face, including those associated with disability and...

Gaps in data on inescapable costs that households face, including those associated with disability and debt, reduce the accuracy of data about who is in poverty. The Social Metrics Commission has shown leadership in highlighting these matters but is reliant on Government data. Making progress on addressing these gaps will …

Government response. The Family Resources Survey (FRS) already collects information on: taxes and national insurance, domestic rates and council tax, child maintenance and child support payments, parental contributions to students living away from home, contributions to pension schemes, the cost of childcare …
Department for Work and Pensions
31 Conclusion Third Report - Children in poverty: Mea…

To improve its measurement of income-related poverty, DWP should work with others, including the Office...

To improve its measurement of income-related poverty, DWP should work with others, including the Office for National Statistics, relevant academics, and children’s charities to identify a list of inescapable household costs and define options for how data on these might be collected. DWP should write to us by June 2022 …

Government response. The Family Resources Survey (FRS) already collects information on: taxes and national insurance, domestic rates and council tax, child maintenance and child support payments, parental contributions to students living away from home, contributions to pension schemes, the cost of childcare …
Department for Work and Pensions
32 Conclusion Third Report - Children in poverty: Mea…

Gaps in the analysis of income poverty for different ethnic groups caused by small survey...

Gaps in the analysis of income poverty for different ethnic groups caused by small survey samples reduces our understanding of poverty and solutions to it. We Children in poverty: Measurement and targets 55 therefore welcome DWP’s recent decision to increase the sample size of its Family Resources Survey which will …

Government response. The full FRS boost starts in April 2022. Precisely which subgroups can be covered post- boost will depend on analysis on the data collected, the response rate and final sample sizes we achieve. It is therefore not possible to provide …
Department for Work and Pensions
33 Conclusion Third Report - Children in poverty: Mea…

DWP should write to us by June 2022 setting out precisely what additional subgroup analysis,...

DWP should write to us by June 2022 setting out precisely what additional subgroup analysis, including analysis of ethnic minority households, it expects to be able to conduct as a result of the increase in the sample size for its Family Resources Survey.

Government response. The full FRS boost starts in April 2022. Precisely which subgroups can be covered post- boost will depend on analysis on the data collected, the response rate and final sample sizes we achieve. It is therefore not possible to provide …
Department for Work and Pensions
34 Conclusion Third Report - Children in poverty: Mea…

Income poverty data on children whose parents have no recourse to public funds is limited.

Income poverty data on children whose parents have no recourse to public funds is limited. DWP’s Family Resources Survey picks up very small numbers of these children and the Department does not collect significant administrative data on them because their parents are not normally entitled to its benefits and services. …

Government response. The Home Office have the policy lead on No Recourse to Public Funds (‘NRPF’).
Department for Work and Pensions
35 Recommendation Third Report - Children in poverty: Mea…

We recommend that DWP works with the Office for National Statistics to produce robust income-related...

We recommend that DWP works with the Office for National Statistics to produce robust income-related poverty and income data on children and their families with no recourse to public funds. DWP should write to us by June 2022 to give an update on its progress in addressing this unsustainable gap.

Government response. The Home Office have the policy lead on No Recourse to Public Funds (‘NRPF’).
Department for Work and Pensions
36 Conclusion Third Report - Children in poverty: Mea…

Local level data on child income poverty is important to enable national and local governments...

Local level data on child income poverty is important to enable national and local governments to plan their services. DWP’s recent work with HMRC to produce local area estimates of children in low income families is welcome, but its usefulness is reduced because the estimates do not include housing costs. …

Government response. There is no single administrative data source of housing costs for individual families. Any new measure which takes account of housing costs would require significant development work. DWP has several statistical development priorities and therefore has no immediate plans to …
Department for Work and Pensions
37 Recommendation Third Report - Children in poverty: Mea…

We recommend that DWP works with external academics, local authorities and other government departments to...

We recommend that DWP works with external academics, local authorities and other government departments to identify options for reflecting the cost of housing in its local area estimates of children in low income families. DWP should write to us by June 2022 to update us on its analysis of options. …

Government response. There is no single administrative data source of housing costs for individual families. Any new measure which takes account of housing costs would require significant development work. DWP has several statistical development priorities and therefore has no immediate plans to …
Department for Work and Pensions

Oral evidence sessions

5 sessions
Date Witnesses
23 Jun 2021 Donna Ward · Department for Work and Pensions, Elaine Squires · Department for Work and Pensions, Will Quince MP · Department for Education View ↗
26 May 2021 Anne Longfield, Bruce Adamson, Ed Humpherson · UK Statistics Authority, Mike Brewer · Resolution Foundation, Robert Joyce · Institute for Fiscal Studies, The Baroness Stroud · Social Metrics Commission View ↗
12 May 2021 Charlotte Ramsden · Association of Directors of Children’s Services, Gavin Mullin · Cambridgeshire County Council and Peterborough City Council, Peter Tutton · StepChange, Sabine Goodwin · Independent Food Aid Network, Una Summerson · Contact-for families with disabled children, Will Tuckley · London Borough of Tower Hamlets View ↗
14 Apr 2021 Charlotte McDonough · Save the Children, Professor David Taylor-Robinson · University of Liverpool, Professor Paul Bywaters · University of Huddersfield, Rebecca Jacques · Children’s Society, Sophie Howes · Child Poverty Action Group, Yasmin Rehman · Juno Women’s Aid View ↗
3 Mar 2021 Dr Jose Manuel Roche · University of Oxford, Dr Keetie Roelen · Institute of Development Studies, Dr Kitty Stewart · London School of Economics & Political Science, Edward Davies · Centre for Social Justice, Helen Barnard · The Trussell Trust View ↗

Correspondence

1 letter
DateDirectionTitle
16 Jul 2021 Correspondence with Minister for Welfare Delivery - follow up on oral evidence …