30/03/2004

Government hails progress on child poverty targets

Up to 700,000 children have been lifted out of relative income poverty since Labour came to power, according to government statistics released today.

The Households Below Average Income (HBAI) 2002/03 figures also revealed that 200,000 more children had escaped income poverty in the past year.

Work and Pensions Secretary Andrew Smith said today that the figures showed that the government was "determined to win the war on poverty".

He said: "By getting parents into jobs, and then making sure that work pays - through tax credits and the minimum wage - we've put ourselves firmly on track to hit our target of cutting the number of poor children by one quarter by 2004/5."

Mr Smith added: "The count of the very poorest children - who are in absolute poverty - has fallen even faster, and has now been halved since 1997. That's 2.1 million fewer children growing up with their opportunities undermined by acute financial hardship.

"Using the same measure for pensioners, today's figures also show excellent progress, with poverty now down by two-thirds on 1997. That means enhanced dignity and security for 1.8 million people during their retirement."

Mr Smith also pointed to the New Tax Credits and the Pension Credit which it is hoped will bring "important new gains" for poorer families and pensioners.

The 'absolute low-income threshold' is below 60% of median household income as of 1996/97, uprated by prices. The 'relative low-income threshold' is 60% of contemporary median household income.

(gmcg)

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