Government figures reveal drop in poverty figures

Fewer pensioners and children are living in poverty, new government figures have revealed.

A report by the Department for Work and Pensions (DWP) showed that absolute pensioner poverty has dropped from 2.8 million in 1997 to 900,000 today, a drop of two-thirds. Relative pensioner poverty (which allows for rising real average incomes) also dropped by a quarter since 1997.

Child poverty has now almost halved, the DWP report also found, dropping from 4.2 million to 2.2 million, since 1997. Relative child poverty figures also dropped to 700,000 lower than in 1997.

Commenting on the new figures, Alan Johnson, Secretary for Work and Pensions, said: "These figures show that the £11 billion extra we are spending on pensioners is making a huge difference. The fall in relative poverty in 2003/4 alone exceeds 10% and is the largest single fall since the series began. The big reduction in poverty is concentrated in the second half of this tax year, when Pension Credit was in place."

Mr Johnson also said that the drop in child poverty was helped by the introduction of child tax credits, which was introduced along with Pension Credit, in 2003. He said: "During this year the new tax credits were introduced, and their take-up grew rapidly. A big increase in Child Tax Credit rates - combined with further increases in take-up - will show up in next year's figures, keeping us broadly on track to hit our targets, on our way to eradicating child poverty within a generation."

Mr Johnson concluded: "So, we are making good progress both for pensioners and children - and we should shout from the rooftops about this - but I am also quite clear that there is much more to do to maintain this momentum".

Shadow Work and Pensions Secretary, David Willetts said attacked the government's child poverty figures, saying: "Labour promised to reduce the number of children living in poverty by a quarter over six years. After five of those six years, they're nowhere near meeting their own target. In fact, since the arrival of Gordon Brown's tax credits, all progress has come to a halt. Only last month, Gordon Brown was claiming to have lifted one million children out of poverty. Today, we see the true figure is barely half that."

Commenting on the figures, Liberal Democrats work and pensions spokesperson, Steve Webb, said: “There are 6.4 million people of working age living in poverty. This is by far the biggest group suffering deprivation. And yet this is the one group who are effectively being ignored by Government. There is no plan, no target, and no strategy. These are the forgotten poor."

(KMcA/SP)