We can do it 非不能也 實不為也 - Multi Interventions towards eradicating child poverty 多元介入兒童貧窮問題

1. We can do it 非不能也 實不為也 - Multi Interventions towards eradicating child poverty 多元介入兒童貧窮問題 Lilian Law Assistant Director (Strategy & Development) Oct 17, 2005

2. June Visit on Poverty Eradication The Study visit was arranged for senior practitioners of the social welfare sectors to learn from UK and EU the regional, national and district level strategies/policies and programmes that combat poverty, focusing especially on preventing inter-generational poverty, assistance to those with working abilities and retirement protection for the elderly. The UK experience in tackling child poverty was impressive. The experiences of which would shed light to groups who decide to devote their efforts in combating child poverty. This presentation serves as a discussion paper between you and the delegation and we are looking forward to hearing your feedback.

3. The UK approach

4. Child poverty rates in UK Combating Child poverty Until the late 1990s, UK had one of the highest child poverty rates in the OECD(>25%). In 1998/99, a government commitment, at the highest levels, to halving child poverty by 2010 & eliminating it by 2020 By 2004/05, the interim target of 25% reduction is likely to be matched The result Source: Oxley et al (2001), Table 15.9 Source: Oxley et al (2001), Table 15.5

5. Child Poverty - Definition Children living in families which have a disposal income below 60 % of median income level • 3 measurements: • (1)“Backstop” - Absolute low income measured by income alone • (2) Relative low income (to indicate the progress in increasing the living standards of the poor relative to the typical individuals): measured by income alone • (3) Material deprivations • supplement these measure with direct indicators of the lack of particular goods and services • measured from individual responses to survey questions on having and being bale to afford a short list of items • 11 for adults and nine for children – and a relative income of less than 70% of the median.

6. Child Poverty - measurements • Material deprivations • These direct indicators of deprivation refer to quality of housing, clothing and social engagement. • i) Adult deprivation: whether families have or are able to afford adequate housing, certain social activities, some assets and adequate clothing • ii) Child deprivation: social activities and enough bedroom for every children • social activities include: • a one week family holiday from home every year • swimming at least once a month, • a hobby or leisure activity, • friends visiting every once every 2 weeks, • leisure equipment, • celebration on special occasions, • play group activities at least once a week for pre-school age children, • a school trip at least once a term for school aged children

7. Intervention strategies Year Policy initiatives 1998 • National Childcare Strategy • Quality Protects (QP) initiative • Crime and Disorder Act (youth justice measures) • Guidance on the Education of Looked After Children • Supporting Families: A Consultation Document 1999 • Beveridge Lecture: pledge to abolish child poverty within 20 years, via • National Minimum Wage, • Working Families Tax Credit, • Child Care Tax Credit, • Tax Credit for Families with Children. • Protection of Children Act • Youth Justice and Criminal Evidence Act • Sure Start Programme

8. Intervention strategies Year Policy initiatives 2000 • Cabinet Committee on Children and Young People’s Services • Children (Leaving Care) Act • Care Standards Act • Carers and Disabled Children Act • Framework for the Assessment of Children in Need and Their Families 2001 • Special Educational Needs and Disability Act • Connexions Service • Adoption and Children Act 2003 • Minister for Children and Young People • Green Paper on Children at Risk • Children’s Trusts • Child Trust Funds • Children’s Bill • Children’s Commissioner for England (from 2004)

9. Intervention strategies • Boost income of families who work - get more to work; child benefit used to link with those who work. 2. Redistribute the resources through tax system –the effort is not through social security system but through inventing new tax credits. Such policy is directly under the Treasury. The negative taxation implies not more spending from government butbut rather reduction of tax people pay 3. Improve capacity of children - better accessibility of services, quality childcare and basiceducation. poverty

10. International comparison

11. Child Poverty rates The Child Poverty League The bars show the percentage of children living in ‘relative’ poverty, defined as households with income below 50 percent of the national median income Source: UNICEF, Child Poverty in Rich Countries,2005

12. Dynamics of children poverty Child poverty rates using different poverty lines The table shows the variation in the child poverty rate when the definition of poverty is set at different levels in relation to average income. Dark blue denotes the best performing countries, mid-blue the average performers and light blue the worst. The countries are selected according to the availability of data.

13. Reducing & Eradicating Poverty

14. Determinants of poverty • Social & families changes • Changes in Labour market • Changes in policies and spending priorities of government Determinants of child poverty Poverty levels are determined by some combination of these three forces – Social trends or Social and family changes : • rising average age of parents , • rising average educational level, • lowering average number of children per family (affect economic resources available to children) • rising number of single parenthood –Labour market conditions: • ▲ volatile by Economic fluctuation • ▲migration of low-skill low-pay jobs, • ▲increasing premium on knowledge and adaptability • ▲ globalization • –government policies – taxes and transfer

15. Determinants of child poverty lowering average number of children per family Job opportunities Minimum Wage rising average educational level SOCIAL AND FAMILIES CHANGES LABOUR MARKET CHANGES Employment training for parents rising average age of parents CHILD Job Stability rising number of single parenthood POLICIES AND PRIORITIES CHANGES TAX Child poverty proof policies Child Income credit Child trust fund Quality child care Service provisions

16. Tax & transfers The light blue bas show child poverty rates based on household incomes before government taxes and transfers while the dark blue bars show the rates after taxes and transfers. The poverty line in both cases is 50 per cent of median post-tax and transfer income. table on p.21

17. Taxes and transfer What is it? Countries redistributing a higher percentage of the national income will have a more equal income distribution Why not • Exaggerate the effects of income support What need further • Support to improve family security – family allowances, disability and sickness benefits, formal day care provision, unemployment insurance, employment promotion, and other forms of social assistance.

18. Advocacy efforts Policies and Tax & Transfer • all parties to commit to eradicate child poverty • Poverty proof policies – make each consistent with eradicating child poverty • Extend Child benefit to pregnant women • Link the child element in tax credits and benefits to average incomes or prices, whichever is rising more quickly • Reform the Social Fund and provide grants for essential items and at times of key transition • reform education funding formulae at local and national level to give greater weighting to poor children • Work related measures • ensure the National Minimum Wage provides a living wage • work towards better jobs, not just more jobs • Social and Families support • Take action, including extending the ten year childcare strategy to help groups facing multiple barriers to work, including minority ethnic groups, disabled parents and parent of disabled children • Ensure that all children, regardless of immigration status, qualify for benefits and inclusion in mains stream services • Raise child benefit and pay an equal rate to all children, whether first born or not • introduce free at the point of delivery, good quality universal childcare

19. Implications For Hong Kong

20. Child Poverty rates in Hong Kong Remark: Low-income households refer to those domestic households with monthly household income less than or equal to half of the median monthly domestic household income of the corresponding household size.Source: General Household Survey

21. Towards eradication of child poverty Eradicate a problem that could be measured • Develop a simple, agreeable and measurable definition of Child poverty A workable definition of poverty will always be related to time and place. For some countries, child poverty will refer to “children living in poverty experience deprivation of the material, spiritual and emotional resources needed to survive, develop and thrive, leaving them unable to enjoy their rights, to achieve their full potential or participate as full and equal members of society.” • “People are living in poverty if their income and resources are so inadequate as to preclude them from having a standard of loving which is regarded as acceptable Irish generally” • By Nation Anti-Poverty Strategy (NAPS), Ireland Child poverty -

22. Definition of child poverty

23. Definition of child poverty

24. Definition of child poverty These could be useful reference for coming up with a useful set of indicators for Hong Kong to come up with a clear understanding of what poverty means and how it should be measured. A good set of indicators could • avoid unnecessary complexity • measure material deprivation directly • draw poverty lines with regard to social norms • establish a regular monitoring system (all indicators need to be updated) • set both a backstop and a target (make a commitment that under no circumstances will that rate be allowed to increase. The backstop poverty line should be updated only for inflation. • offer leadership and build public support for poverty reduction

25. Determinants of poverty • Social & families changes • Changes in Labour market • Changes in policies and spending priorities of government Determinants of child poverty Poverty levels are determined by some combination of these three forces – Social trends or Social and family changes : • rising average age of parents , • rising average educational level, • lowering average number of children per family (affect economic resources available to children) • rising number of single parenthood - Labour market conditions, and • government policies – taxes and transfer

26. Social & families changes Population Pyramid

27. Social & families changes Children population size continues to shrink –For every 10 residents, we have less than 2 kids

28. Determinants of poverty • Social & families changes • Changes in Labour market • Changes in policies and spending priorities of government Determinants of child poverty Poverty levels are determined by some combination of these three forces – Social trends or Social and family changes : • rising average age of parents , • rising average educational level, • lowering average number of children per family (affect economic resources available to children) • rising number of single parenthood - Labour market conditions, and • government policies – taxes and transfer

29. Unemployment Trends

30. Appendix:Useful websites

31. Useful websites United Kingdom Social Exclusion Unit www.socialexclusion.gov.uk ECPC www.ecpc.org.uk CASEs Studies in Poverty, Place & Policy www.policypress.org.uk Sure Start programme www.surestart.gov.uk Child Poverty Action Group www.cpag.org.uk Job Centre and Employment www.jobcentreplus.gov.uk European Union EU www.europa.eu.int Eurochild www.eurochild European Antipoverty Network www.eapn.org Aged coalition www.age-platform.org Family Care for Aged www.ukc.uni-hamburg.de/exter/eurofamcare/

32. Thank you