Defining a Child Poverty Basket in the National Indicator Set

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					       The Child Poverty Basket in the National Indicator Set

1. Local authorities and their partners have a vital role in delivering the
   services that will contribute to ending child poverty. As providers and
   commissioners of services they also have a major part to play in
   narrowing the gaps in outcomes between children from low income
   families and their peers, and breaking inter-generational cycles of
   deprivation. Through driving regional economic performance and
   sustainable growth they also create prosperity and employment.
2. Local authorities can provide strategic leadership in tackling child
   poverty and facilitate creative solutions tailored to local circumstance.
   Many local partnerships are already doing excellent and innovative
   work, but there is much more to do. To support this, the Child Poverty
   Unit and partners are creating a range of tools and support to help
   local partnerships develop and deliver effective child poverty
   strategies, within the context of local Sustainable Community
Why has the Child Poverty Unit defined a basket of indicators
within the current NIS?
3. The Child Poverty Unit has been asked to identify a basket of indicators
   from the current National Indicator Set (NIS) which most closely reflect
   the drivers of child poverty that can be influenced by the local
   authority and its partners.
4. The “basket” described below is drawn from the NIS. It is hoped that
   this will help local partnerships understand the broad range of factors
   contributing to child poverty locally. A variety of baskets have been
   proposed but we hope that by specifying a single basket, based upon
   the best available evidence, we will create a shared understanding
   between national, regional and local partners of which NIS indicators
   are most relevant in tackling child poverty.
How can the basket be used?
5. The current NIS does not contain indicators which comprehensively
   capture all activity that contributes to tackling the causes of child
   poverty. Therefore progress on the indicators identified in the basket
   will not guarantee progress in tackling child poverty, but will give some
   indication that progress is being made in the right areas.
6. Information on the indicators within the basket can be used alongside
   the other information available to help partners understand and
   address their local situation. We are not however seeking to introduce
   new indicators or change agreed LAA targets.
7. Clarity on the drivers of child poverty is especially important now as
   the Child Poverty Bill introduces a duty for local partners to undertake
   a child poverty needs assessment. The Child Poverty Unit’s website,
   launched later this year, will provide links to help local partners to
   understand and access the wider data available to them to help in this
Will the basket replace NI116?
8. A basket of indicators must not replace NI116: it is still critical that
   areas focus on the ultimate goal of tackling child poverty. The purpose
   of the basket of indicators is not to provide an alternative to NI116,
   but to enable all partners to understand and reflect progress towards
   this outcome in more depth.

Diagram 1. Child Poverty Pyramid:
9. The pyramid diagram below represents our best understanding of the
   factors that impact on child poverty1. To be effective an area will have
   to focus attention on the factors which have largest and most direct
   impact on child poverty. We have tried to reflect this by prioritising
   indicators in the basket into a hierarchy of three tiers that reflect their
   casual impact of indicators in contributing to reducing child poverty.


                                         Factors that directly influence families’
                                              resources and incomes today
                                            Support                             Costs
                                          (tax credits,                      (eg. housing,
                                           benefits &
                                                             Parental          utilities)
                                              child        employment
                                          maintenance)      & earnings

                            Factors that directly influence families’ abilities to enter and
                             sustain well paid employment in the short and longer term.

                                        Adult Skills                          Transport
                      Education                            Childcare

                  Factors that indirectly influence families’ abilities to enter and sustain well paid employment
                                              and escape poverty now and in the future

                                         Access to                                                                  Crime,
     Children’s                         services and                             Teenage                            drug &
     outcomes         Financial           facilities                            pregnancy        Relationship       alcohol
                      Inclusion                                                                   breakdown           use.

 The development of the Child Poverty Strategy will reveal more detail on the impact of different
drivers on child poverty.
                      Table 1: The Child Poverty Unit’s Child Poverty Basket
               10.Using the pyramid, we have identified twenty indicators within the NIS
                  that make up the child poverty basket. These are outlined in the table
               11.In some areas, there may be other pertinent issues that contribute to
                  child poverty, and are not reflected in the table below. The table also
                  suggests a further 9 NIS indicators not in the basket that relate to
                  Child Poverty that areas may feel are needed to supplement the

     Tier                       Outcome                      Related Indicators in Current NIS which would
                                                                           make up a Basket

  High level       All of the children living in poverty
                                                                   NI116: Proportion of children in poverty.
                             in the local area

                       The number of parents in
                                                                       NI151: Overall employment rate

                       The earnings of parents in
                                                               NI166: Median income of employees in the area.
                    The number of families taking up
Second tier of      the benefits and tax credits that                                  N/A
   outcomes:              they are entitled to
  factors that
                   The timeliness and accurateness of
                                                            NI181: Time taken to process HB/CTB new claims and
   influence         payments administered by local
                                                                              change events.
    families’                   partners.
 incomes and
   resources                                                         NI158: % non-decent council homes
      today          The proportion of families with
                    children living in decent homes.
                                                              NI156: Number of households living in temporary

                     The proportion of families with       NI187: % people receiving income based benefits living
                   children experiencing fuel poverty.              in homes with a low energy rating.

                                                            NI163: Proportion aged 19-64 for males and 19-59 for
                      The skills levels of parents.
                                                                      females qualified to L2 or higher.
   Third tier:
  Factors that                                                  NI82: Inequality gap in the achievement of a level 2
      directly                                                             qualification by the age of 19
     families’                                             NI92: Narrowing the gap between the lowest achieving 20% in
                      The levels of achievement and
   abilities to                                                               the EYFS and the rest
    enter and       progression amongst children and
  sustain well       young people, particularly those         NI101: LAC achieving 5A*-C GCSEs or equivalent at KS4
        paid       from low income families and other                      including English and Maths
employment in            disadvantaged groups.
 the short and                                              NI102: Achievement gap between pupils eligible for FSM and
  longer term.                                                           their peers at Key Stage 2 and 4.
                                                            NI105: SEN/non-SEN gap achieving % A*-C GCSEs including
                                                                              English and maths.
                                                           NI106: young people from low income backgrounds progressing
                                                                                      to HE.
                                                              NI108: KS4 attainment for BME groups.

                                                              NI117: 16 to 18 year olds who are NEET

                    The sufficiency of suitable
                employment opportunities that
                    offer sufficient pay and/or                                    N/A
                  progression routes to move
                     families out of poverty.
                 The sufficiency of suitable and
                                                        NI118: Take up of formal childcare amongst low income
               affordable childcare for parents in
                    employment and training.
                  The sufficiency of affordable
                transport, particularly between
                                                         NI176: Working age people with access to employment
                poorest communities and areas
                                                                           by public transport.
                  where there are employment
                In addition to the core basket set out above, partners may want to include other indicators
                          that reflect pertinent issues in their area. Other relevant indicators include:
                       NI76: Reduction in number of schools where fewer than 65% of pupils achieve level 4
                        or above with English and Maths at KS2.
                       NI78: Reduction in number of schools where fewer than 30% of pupils achieve 5 or
                        more A*-C at GCSE including GCSEs in English and Maths.
                       NI112: Under 18 conception rate
partners may
                       NI146 Adults with learning disabilities in employment
wish to add
                       NI150: Adults in contact with mental health services in employment
to their
                       NI153: Working age people claiming out of work benefits in the worst performing
                       NI161: Number of level 1 qualifications in literacy achieved.
                       NI162: Number of entry level qualifications in numeracy achieved.
                       NI172: Percentage of small businesses in an area showing employment growth.