UK: Poverty

Debate between Lord Freud and Baroness Seccombe

Monday 25th March 2013 Lords Chamber

[Baroness Seccombe]

To ask Her Majesty’s Government what is their definition of poverty in the United Kingdom.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Lord Freud)]

My Lords, the Government keep track of their progress on reducing poverty using a range of measures in their annual publication Households Below Average Income. They include the below 60% of median income measure, which is used internationally. However, a purely income-based measure of poverty is too narrow and does not capture progress on solving the underlying causes of poverty, such as family breakdown or benefit dependency. The previous Government spent £170 billion on tax credits yet missed their target to halve child poverty.

[Baroness Seccombe]

My Lords, I am sure that if each of us were asked “What is poverty?” we would have a variety of definitions, so I am grateful to my noble friend for answering the Question as he did. More importantly, can he tell us what measures the Government have taken to help working families and those who through ill health and disability are unable to sustain themselves?

[Lord Freud]

My Lords, we provide very significant support to families in need. Working-age benefits stood at £96 billion in 2010 and have been moving up faster than average earnings. Disability payments now stand at 2.4% of GDP, which is much higher than the norm in the EU where the average is 1.4%. We are designing universal credit to target our support efficiently on the poorest families.