Tackling Child Poverty: What the U.S. Can Learn from Britain, By Jane Waldfogel, Professor of Social Work and Public Affairs, Columbia University

Posted July 12, 2010

The Labour government of Britain, in office from 1997 to 2010, waged an unprecedented campaign to reduce child poverty. There is much for the U.S. to learn from their efforts.

 

In March 1999, British Prime Minister Tony Blair made a daring pledge to end child poverty. Gordon Brown – then Chancellor of the Exchequer, and later Prime Minister – carried the pledge forward—setting ambitious targets to cut child poverty in half within ten years and to eliminate it in twenty, and putting real resources into the campaign.

 

At the start of the campaign, one in four British children lived in poverty, the third highest child poverty rate among industrialized countries. If child poverty is measured in absolute terms – as it is in the U.S – then the first goal has already been achieved. Child poverty in Britain has been more than halved, from 26 percent down to 12 percent. 

This is a remarkable success, and one that is all the more striking if we compare it to the U.S. The welfare reforms of the 1990s transformed our welfare system, imposing a tough set of work requirements along with a set of enhanced incentives to work. But the U.S. reforms were much less effective in reducing child poverty, which only fell from 22 percent in 1992 to 18 percent today.

 

Ironically, much of what Britain implemented so successfully was modeled on U.S. programs. Britain’s tax credit is similar to our Earned Income Tax Credit, but was funded more generously. Britain also drew on U.S. evidence in designing its first national minimum wage, but set it at a higher level and updated it annually to keep up with inflation.

 

In contrast to the U.S., Britain also strengthened its non-work-based safety net. Recognizing that not all parents will be able to work, Britain stepped up its support for low-income families even if parents were not working. The value of the universal child benefit program was increased, as was the value of welfare benefits for low-income families with children.

Where Britain really surpassed the U.S., however, is in taking a more comprehensive approach to child poverty and in thinking about long-term as well as short-term effects. Getting more parents into the workforce and raising their wages reduces poverty for today's children.

 

But breaking the cycle of poverty and promoting mobility for future generations requires a broader set of investments. In Britain, as in the U.S., people at the bottom of the income distribution tend to have low skill levels, leading to higher unemployment, lower earnings, and, ultimately, families with impoverished children.

 

To end the cycle of child poverty, the British government, to its credit, has confronted this challenge. In striking contrast to the U.S. welfare reforms, Britain’s anti-poverty programs included measures to raise all children's skill levels, and to close gaps between the most disadvantaged and their more advantaged peers.

Big investments have been made in early childhood programs, reflecting scientific consensus that early experiences are crucial to children’s outcomes. There is now free universal preschool for three- and four-year-olds, with Sure Start and other programs for younger disadvantaged children, and guaranteed child care subsidies for low-income working families.

Paid maternity leave was doubled – mothers now can take 9 months of paid leave – and two weeks of paid paternity leave for fathers was introduced. All parents of young children were given the right to request part-time or flexible hours, a program that proved so popular that it was later extended to all parents and, most recently, all employees.

Improving schools was also emphasized. Government spending on education doubled in real terms over the decade. So, contrary to the Bush administration’s “No Child Left Behind” approach, which simply spotlighted low-achieving schools, Britain invested real resources to close achievement gaps.

The U.S., by contrast, continues to lag in preschool enrollment, just as Britain did a decade ago. Nearly one-third of America’s three- and four-year-olds are not in any form of preschool, with low-income and immigrant children most likely to miss out. The U.S. also lags in not providing paid parental leave for new mothers and fathers, and in not providing access to flexible working.

Tackling child poverty is especially urgent in the face of the global economic crisis. President Obama's economic stimulus package expanded funding for preschool programs such as Head Start and school-based initiatives to raise achievement for disadvantaged children. It also increased Pell Grants to offset college costs for low-income youth. Such investments can close achievement gaps and prevent poverty in the next generation.

 

Health care reform could also make a difference by addressing a major source of economic insecurity for many American families.

To have a lasting, significant impact, more needs to be done. We should be investing more in pre-kindergarten programs, which have proven to increase school readiness, but which currently serve less than one-fifth of all four-year-olds. We should also increase funding to enable schools to hire and retain the best possible teachers and to place them in classrooms with the neediest students. And we must construct a safety net strong enough to buffer children from the impact of today's economic turbulence.

 

The legacy of the U.S. welfare reforms of the 1990s is a work-oriented safety net. We have seen in the past few years the shortcomings of that system when jobs are scarce. And even in the best of economic times, the system is not adequate to help those who face serious barriers to employment.

 

We must also ensure that low-income working families with children have sufficient supports, such as paid parental leave and sick leave, guaranteed child care assistance, and a right to request part-time or flexible hours.

The U.S. welfare state, originally modeled on the British one, still reflects that legacy today. But Britain’s welfare state has moved on. In the last decade, they’ve made a real assault on child poverty, and there is much for the U.S. to learn from the British example.

 

Britain has also proven if you invest real resources in tackling child poverty, it is not intractable. Real progress is possible.

Jane Waldfogel is Professor of Social Work and Public Affairs at Columbia University, Visiting Professor at the London School of Economics, and author of Britain’s War on Poverty (Russell Sage Foundation, 2010).

 

Viewpoints in this section solely represent the authors’ opinions and not the opinions of "Spotlight on Poverty and Opportunity."

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