date: Wednesday 3 December 2003 embargo: 00:01 hrs Thursday 4 December

Attention: Industrial, business and social affairs correspondents

Benefits and tax credits must increase to end child poverty

Working and Child Tax Credits and ‘out of work’ benefits must be increased to meet the government’s target of eradicating child poverty by 2020 and halving it by 2010. In its submission to the government’s child poverty strategy review, launched at a seminar today (Thursday), the TUC says that ‘making work pay’ through tax credits has lifted thousands of families and children out of poverty but children in families reliant on benefits are being left behind.

The TUC submission shows that many children in poverty have disabled or sick parents or a lone parent receiving benefits and although government efforts have encouraged a large number of these parents into work it will not be possible for all of them. More and more families will fall below the poverty line and fall further behind other families if benefits are not increased soon and increased in line with earnings in future. International evidence included in the TUC submission shows that the countries with the lowest rates of child poverty have invested in the welfare state to protect living standards as well as raise work income.

Tax credits have increased the income of nearly six million families with over ten million children but they need to be higher to lift more children out of poverty. There is also evidence that employees are worried that they may be dismissed if they try to claim Working Tax Credit and reports of employers threatening to do so. To tackle this the TUC is also publishing today a guide to ‘your rights to claim Working Tax Credit’, explaining to employees and employers the very simple steps to take to ensure that those who qualify receive the credit

Speaking at the child poverty seminar, TUC Deputy General Secretary Frances O’Grady, said:

'The government is tackling the scandal of child poverty head on. Making work pay through the tax credit system is raising the quality of life for millions of families but there are always going to be families and children who depend on the benefits safety net. And the net must be strengthened by raising benefits or the government’s target to end child poverty will not be met.

'The TUC believes tax credits should also be increased but there is a responsibility on unions and employers to make sure employees are able to claim what they deserve. For minimal effort an employer can make a real difference to the quality of life of their employees.'

Notes to Editors:

The TUC launches its submission to the child poverty strategy review and a guide to Working Tax Credit at a seminar at 10am, Congress House on Thursday 4 December. If you would like to attend the seminar contact Emma Richards at the TUC on: 020 7467 1258.

Copies of both documents are available from the TUC press office.

Contacts:

Media enquiries: Ben Hurley 020 7467 1248 or 07626 317903 (pager) or email bhurley@tuc.org.uk

Press release (600 words) issued 4 Dec 2003