The REAL Financial Crisis

Today is the 10th anniversary of Tony Blair's visionary Beveridge Memorial speech where he committed the Labour Government to eradicating child poverty within 20 years. But at present 1 in 3 children are currently living below the breadline

In an article in the Guardian G2, Amelia Gentlemen gives a portrait of 21st-century child poverty.

The chilling indictment is that some of Louise's problems arise from the £7 a week repayment of overdraft charges to LloydsTSB.

When she was still battling with bank charges imposed every time she went overdrawn (which was every week), she would she has to make do without meals herself because there wasn't enough food for herself and her 2 children.

She is now slowly paying of a debt of £600 of fines and charges. In addition, she no longer has a bank account and now only deals in cash.

At £7 per week, Louise will be paying off this debt for the next year and a half. Something chief executives of banks SHOULD be mulling over as they accept unacceptable bonuses and pension pay-outs.

And what can we do? Perhaps we should start by re-reading the July 2006 report and findings by Donald Hirsch to the Joseph Rowntree Foundation, "What will it take to end child poverty?",
which concluded:
"that, to make further inroads into child poverty, the Government will need to extend its policy of increasing redistribution to low-income families, but that this will not be enough on its own to meet the targets. In addition, this will require parents to fare better in the workplace, with improved pay and opportunities. Long-term policies working in this direction include better education and training for disadvantaged groups, improved childcare and the promotion of equal pay for women."

The same author in his recent study for the JRF, "Child poverty in a changing economy" (February 2009) , updates and revises projections of child poverty in 2010 and 2020.

He states:
"Despite tough times ahead, there is still political consensus around the goal to end child poverty. Based on new projections taking account of the recession, the Joseph Rowntree Foundation has updated its assessment of what it will take to meet the government targets to halve child poverty by 2010 and eradicate it by 2020."

One of the key points is that projections based on current policies suggest that child poverty will fall from 2.9 million to 2.3 million by 2010 – 600,000 short of the target.

To meet its target for 2010, the Government will have to invest an estimated £4.2 billion a year in benefits and tax credits above its present plans. The allocation of an additional £2 billion since 2006 has been offset by an unexpected rise in child poverty between 2004 and 2007 and the increased costs of the recession.

By 2020, without new policies to help low-income families, child poverty is projected to rise to 3.1 million.

We've found money to help the banks - indeed last October £17 billion was injected into the very same LloydsTSB Bank that causes Louise such financial hardship. Why can't we do the same to assist those like Louise who face REAL financial difficulties