Currently, child poverty is measured by family income alone, with children living in households lower than 60 per cent of the median UK income defined as being in poverty.
The Government wants to look at how a wider measurement can be developed to tackle the root causes of poverty.
Indicators being considered include income and material deprivation, worklessness, unmanageable debt, poor housing, parental skill level, access to quality education, parental health and family stability.
Launching the consultation today (Thursday) at Clyde Children’s Centre in Deptford, the Secretary of State for Work and Pensions, Iain Duncan Smith, said, ‘It is widely understood that the current relative income measure by itself is not providing an accurate picture of child poverty.
‘Having such a narrow focus can drive perverse decisions, rather than asking whether a sustainable difference has been made to a family’s life. This is about transforming their outcomes so they do not slip back below the "poverty line".'
Minister of State for Schools David Laws said, ‘Traditionally, we have defined poverty simply by income. But this is not enough. The experience of child poverty is about more than whether their family income this week is low.
‘This consultation is not about abandoning the past. It is instead about recognising the many dimensions of child poverty and concentrating policy on longer term solutions and not on short-term fixes.’
He added, ‘The previous government’s target to halve child poverty by 2010 was not achieved. And whilst the relative child poverty numbers fell in the last year, children were no better off in real terms as this decrease was due to a lowering of the median income level.
‘This underlines that looking at relative income in isolation is misleading – it cannot be right that because median incomes fall, children are considered to have moved out of poverty when there will have been no real change to their lives.'
Commenting on the news, Neil Leitch, chief executive of the Pre-School Learning Alliance, said, 'We agree with the Work and Pensions Secretary that poverty is not just a financial measure but also about a lack of opportunity for children and families in disadvantaged households.
'However, it is an interesting statement given that many families on the lowest incomes are on the receiving end of policies delivering cuts in social benefits and tax credits. Indeed, a recent report by the Joseph Rowntree Foundation warned that the Government’s forthcoming Universal Credit could unintentionally trap people in poverty as they may be worse off in work and have to cope with a more complex benefits system than before.'
He added, 'While the Alliance welcomes Government plans to move away from a narrow focus of family income as a poverty indicator, we believe it is important that the Government continues to monitor relative income poverty as well so that we do not lose track of our global positioning as a nation.
'It is also equally important that the Government continues to recognise the important role that high-quality childcare provision plays in children’s early years to help give them the best start in life and does not lose sight of this important resource, particularly in areas of disadvantage.'
The Government’s consultation on the measures of child poverty closes on 15 February 2013.
