Nursery World - More children living in poverty despite Labour targets

Economists have pointed to a growing gap between rich and poor in the UK as Government figures revealed that the number of children living in poverty rose by 100,000 to 3.9 million in 2006-2007.

The Institute of Fiscal Studies analysed the 'Households Below AverageIncome' report from the Department for Work and Pensions, which takeshousehold income as its measure of living standards.

Income for most households 'barely grew... while income grew rapidly forthe rich and fell for the poor', the report said.

The IFS said that poverty and inequality had both increased for thesecond year in a row as benefit and tax credit increases failed to keepup with inflation.

It said the fall in child poverty under New Labour came to an end in2004-05 and poverty seems to be on the increase again.

David Phillips, IFS research economist, said the Government would needto spend a further 2.8 billion a year by 2010-11 to give itself a50:50 chance of meeting its next child poverty target.

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