Source · Select Committees · Work and Pensions Committee

Recommendation 8

8 Paragraph: 41

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

Conclusion
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 relative measure can, in the short term, produce counter-intuitive results—but it has great value for assessing long term trends. We are concerned to see Ministers focusing on a single measure, rather than drawing on the rich information offered by DWP’s own set of income-based measures, which combines relative, ‘absolute’ and broader material deprivation statistics.
Paragraph Reference: 41
Government Response Acknowledged
HM Government Acknowledged
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 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 in line with its statutory responsibilities. In addition, we update Parliament via our annual report and Ministers are held to account on a regular basis at Oral questions and by the WPSC. As our economic recovery progresses our focus is on helping people get back into and to progress in work, based on clear evidence that work, particularly full-time work, is the most effective way of tackling poverty. The £500 million expansion of the Plan for Jobs will ensure that people across the country continue to be supported to do so. DWP’s Secretary of State continues to lead wider cross-Government action on tackling poverty and the cost of living.