Tax Credits: Impact of Cuts

Lord Bishop of Portsmouth Excerpts

Monday 14th September 2015 Lords Chamber

[Lord Ashton of Hyde]

The noble Baroness is well respected for her mastery of the detail in this reform. We will address child poverty comprehensively in the Welfare Reform and Work Bill. I am sure that the noble Baroness will be involved in that. We still think that work is the best route out of poverty. The number of children growing up in workless families is at a record low, down by 390,000 in the last Parliament. We are particularly trying to help those on the lowest incomes. Families will still be able to earn up to £3,850 before the awards are taken away.

[The Lord Bishop of Portsmouth]

My Lords, bearing in mind that two-thirds of children who live in poverty are in in-work families, how will the Government monitor the impact of the proposed changes? In particular, will they review the exclusion of income-based measures from the suite of life chances indicators being brought in?

[Lord Ashton of Hyde]

The right reverend Prelate is correct to focus on these statistics and forecasting child poverty is very difficult. The IFS, for example, forecast in 2011 that there would be 2.8 million children in relative poverty and the actual figure was more than half a million less. We have considered the impact of the policy changes on children in poverty carefully in the summer Budget and we will continue to do so.