3 Changing patterns of poverty in early childhood The changing face of early childhood in the UK
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Authors
Carey Oppenheim
Christopher Milton
3 Changing
patterns of poverty
in early childhood
The changing face
of early childhood
in the UKContents Overview and summary 2 Scope and methodology 7 1 The scale of child poverty and deprivation today—a snapshot 9 2 Why is poverty an essential lens to understand early childhood today? 13 3 How has public policy addressed early childhood poverty? 19 4 The patterns and causes of poverty have become more complex 25 5 COVID-19 and its implications for poverty in early childhood 40 6 Conclusions 42 References 46 Annex 51 Changing patterns of poverty in early childhood
The changing face of early childhood series
The changing face of early childhood, • Review 1 – How are the lives of families
is a series of short reviews, events and with young children changing?
engagement that seeks to generate • Review 2 – Protecting children
an informed debate on early childhood at risk of abuse and neglect
based on what the collective evidence • Review 3 – Changing patterns
tells us. The series draws on over of poverty in early childhood
80 studies funded by the Nuffield • Review 4 – The role of early education
Foundation and undertaken by and childcare provision in shaping
multidisciplinary researchers working life chances
in universities, research institutes, think • Review 5 – Are young children
tanks and other organisations, as well healthier than they were two
as other key studies. The research is decades ago?
wide-ranging, reflecting the interests • Review 6 – Parents and the home
of the research community, as well as • Conclusion – Bringing up the
the Foundation’s priorities. next generation: priorities and
Our approach is designed to be next steps
holistic, bringing together perspectives
from different disciplines and vantage Points for discussion are included
points. We want to involve researchers, throughout the series; these include
policy makers, and practitioners to help insights, thorny issues and dilemmas,
us explore the issues, develop evidenced- and research gaps. We value your
informed recommendations and identify input on these points, and on
gaps in the evidence. The final report the series as it progresses, and
will draw on the insights provided by the responses we receive will inform
our readers and contributors over the the concluding review. You can provide
course of the series. feedback on this review via our website:
This review, the third in the series, www.nuffieldfoundation.org/contact/
explores changing patterns of poverty feedback-changing-face-of-early-
in early childhood. childhood-series
Nuffield Foundation Changing patterns of poverty in early childhoodChanging 2
The changing face of early childhood in the UK
patterns of poverty
in early childhood
Overview and
summary
About this review
The changing face of early childhood series poverty is particularly urgent in the context
explores how young children’s lives have of the COVID-19 pandemic, which in
been changing over the last two decades. many areas has intensified pre-existing
Two key themes run through the series: inequalities as well as generating new ones.
the implications of the changing nature Poverty and its changing nature
of family life and family structures for the are an essential lens through which to
economic security, development and well- understand early childhood today for
being of young children; and inequalities three reasons.
between children. This review sets out to
explore a key aspect of inequality—the 1 At 36%, the rate 2 of poverty among
changing patterns of poverty, in particular families where the youngest child is
for young children under five, over the under five is high—and increasing
last two decades. In 2019/20 (DWP 2021). In this review, we
4.3 million children were living in undertake original data analysis
Note to the reader: relative poverty 1 —a barometer to illuminate patterns of poverty
Inline references of social injustice in the UK in families with a young child.
that are underlined
are those funded
today (Department for Work and
by the Nuffield Pensions (DWP) 2021). Addressing
Foundation.
1 All terms in bold italic (at first mention in each section) are defined in the Key terms on page 8.
2 We use rate and risk of poverty interchangeably to denote the proportion of the specified population who
are in poverty.
Nuffield Foundation Changing patterns of poverty in early childhood2 Experiencing poverty at the start Family life has become more complex— 3
of life and in early childhood can economically, socially, culturally—
The changing face of early childhood in the UK
be highly damaging, with potentially and more unequal. Policy responses,
profound effects on children’s long- if they are to be durable, need to reflect
term well-being and opportunities. the combined effects of these different
factors on young children’s lives.
3 The causes, patterns, and solutions In this review, we highlight key
to poverty have become more insights from work the Nuffield Foundation
complex and interlinked over the has funded and explore the implications
last two decades. Disruptive forces, of current changes, including the
such as a rapidly changing economy impact of COVID-19, on young children’s
and labour market, increasing levels lives. We set these new insights in
of in‑work poverty, more complex the context of existing evidence by
family structures, structural inequalities synthesising and critically appraising
between ethnic groups, and differences a large body of evidence, and highlighting
by place have changed the contexts connections and tensions, as well as
in which young children are growing up, gaps and uncertainties.
as well as their life chances. Where the word ‘poverty’ is used
in the text, this refers to relative poverty
Poverty is about both economic defined as those living below 60%
disadvantage and the tangled pressures of contemporary median income, after
that can influence the responses and housing costs, unless stated otherwise
behaviours of those caught within it. (see Key terms).
Key learning
Children are at greater risk of poverty health and well-being of parents and
than the population as a whole their socioeconomic status. These
In the UK in 2019/20, 31% of all children3 early disadvantages can go on to
(4.3 million) were living in poverty affect children’s cognitive skills and
compared to 22% of the whole population. their physical, social, and emotional
Poverty among families where the youngest development throughout childhood and
child is under five is even higher—in adulthood. Being ready to start school
2019/20, 36% fell into this group affecting is one clear illustration of this—the gap
some 2.2 million children (DWP 2021). between advantaged and disadvantaged
children achieving a ‘good level
Gaps between children emerge early of development’ as measured by
The harm that poverty can inflict begins the Early Years Foundation Stage
at conception and is shaped by the Profile (EYFSP) at the age of five stood
3 HBAI (DWP) defines ‘children’ as an individual aged under 16 or aged 16–19 and dependent.
Nuffield Foundation Changing patterns of poverty in early childhoodat 17.8 percentage points in 2019. Following the resilience, strength and skills employed 4
some improvements between 2013 and by families that live in poverty to give their
The changing face of early childhood in the UK
2017, progress in narrowing the gap has children the best life possible (Brewer and
now stalled. Patrick 2021).
Poverty can be highly detrimental There have been major shifts in how
if it is persistent and experienced public policy has addressed early
in the first three years of life childhood poverty
Poverty influences young children’s Policy responses to child poverty since
lives directly through parents or carers 1996/97, shaped by socioeconomic
not having enough money to meet their circumstances and changing political
children’s material and social needs, as well priorities, have tried to grapple with the
as indirectly by generating psychological complex new pressures facing families
stress and other pressures. These shape with young children with varying degrees
the relationships and interactions within of success. These changing priorities,
the family, including parenting, which in in combination with the complex shifts
turn influence children’s development in policy, are reflections of why the core
and well‑being. solutions to child poverty are difficult
For children growing up in poverty to fully realise and maintain.
the experience can be pervasive, affecting Public policy responses have tended
what and how much they eat, what they to fall into two broad approaches: reducing
wear, the space and warmth of their homes, pressures on families, and increasing their
places and opportunities to play, access capabilities (Eisenstadt and Oppenheim
to the internet, holidays and educational 2019). Policies range from tackling income
opportunities. Children are also affected poverty at source through financial
by the stresses and strains in family transfers, parental employment and
relationships, generated by poverty and education, and/or addressing the mediating
debt, as parent(s)/carers try to manage factors such as mental health support
on very limited funds. for parents, parenting interventions, and
The experience of poverty can also quality early years provision and services.
limit young children’s later opportunities and This review identifies approaches that have
life chances. This is not to say that parental worked in the past and provide a guide
economic disadvantage inevitably leads to what may work in the future.
to poor long-term outcomes for children; There is however limited evidence
other factors such as family circumstances, that enables a systematic approach
capabilities, histories, ethnic background, to understanding the effectiveness
parental education, wider kinship and of different policy options over the
social support networks, and local contexts medium and longer term and the optimal
all play a role. For example, a study by use of public resources to address
Kiernan and Mensah (2011) found that 58% early childhood poverty in the round.
of children who experienced persistent
poverty and strong parenting skills had Child poverty has been on the rise since
good child outcomes at age five. This is not 2013/14—and patterns are changing
necessarily a causal relationship; there may Over the past 20 years, relative child
be other factors at play, such as parental poverty rates have fluctuated significantly,
mental health. Recent research on the falling overall between 1999/00 and
impact of the pandemic shines a light on 2019/20, but with a notable increase since
Nuffield Foundation Changing patterns of poverty in early childhood2013/14 (DWP 2021). This rise in poverty a three-year average between 2017 5
has been steeper for families where and 2020, 71% of children in families
The changing face of early childhood in the UK
the youngest child is under five, rising of Bangladeshi origin with a young
from 30% in 2013/14 to 36% in 2019/20 child were living in poverty. In many
(Stewart and Reader 2021; DWP 2021). other minority ethnic groups, over
A growing proportion of parents— 50% of families were living in poverty.
both lone parents and couples—remain 44% of children growing up in families
in poverty even though they are in paid with the youngest child under five, where
employment, and despite increases in an adult or child has a disability, were
the minimum wage (Vizard and Hills 2021). in poverty in 2019/20. (DWP 2021).
This reflects both reductions in in-work There is limited analysis of the
benefits/tax credits for this group (Hick intersection of these different risks
and Lanau 2017; Cooper and Hills 2021) of poverty, though we know that some
and the changing nature of the labour groups of children experience multiple
market, including the growth of precarious disadvantage, which is more detrimental
and atypical work. Over the past 20 years, to their life chances. It is the combination
the rate of poverty for families with the of poverty and wider forms of deprivation
youngest child aged under five and at that poses the greatest risk to young
least one adult in work has increased children’s development (Schoon et al. 2013).
by 16% (DWP 2021).
Changes in family structure also There are signs of an intensification
have implications for patterns of poverty. of poverty over the last two decades
The proportion of lone parent families Analysis by the Social Metrics Commission
in poverty has reduced over the last two (SMC) shows there has been a small
decades, but remains much higher than for increase in the proportion of all children
couple families with children. The risk of living in deep poverty (that is, below 50%
poverty for children in cohabiting couples of the SMC poverty line) than in earlier
is also higher than those living with parents years (2020). Families with children are also
who are married or in civil partnerships. more likely to be living in persistent poverty
The risk of poverty for families with three than other groups and 20% of families with
or more children has been growing since children are living in deep and persistent
2013/14, but has decreased for families with poverty (SMC 2020). There has been
one or two children. (DWP 2021). a significant rise in destitution (not having or
Comparing regions in England, being able to afford the absolute essentials)
over a three-year average between in the UK since 2017, affecting 550,000
2017 and 2020, the North East had children in 2019 (Fitzpatrick et al. 2020).
the highest rates of child poverty in
households with the youngest child under COVID-19
five, followed by London, and the South The outbreak of COVID-19 and its health,
West the lowest. Moreover, over the last economic and social consequences have
20 years, families with a young child had profound implications for all young
in the North and Midlands—the focus children, but especially those growing up
of the government’s policy on ‘left-behind’ in low-income families and those whose
areas—have seen considerably less parents have lost their jobs or had their
improvement in poverty rates (DWP 2021). earnings reduced or faced rising costs
Some groups of children face during the lockdown (Brewer and Patrick
extremely high rates of poverty. Over 2021). The Legatum Institute (2020)
Nuffield Foundation Changing patterns of poverty in early childhoodestimated that by the winter of 2020, closure and disruption to childcare, 6
COVID-19 had drawn an additional early years settings and reception
The changing face of early childhood in the UK
690,000 people into poverty, including classes, combined with home-learning,
120,000 children. The same analysis also has had a detrimental impact on
showed that the government’s benefit/tax disadvantaged children, and particularly
credit measures had protected a further language development, which has
690,000 people from falling into poverty. widened existing gaps in educational
COVID-19 has profoundly disrupted and social development (Andrew et al.
the contexts in which young children 2020; Ofsted 2020; Bowyer‑Crane
develop, learn and play. The partial et al. 2021).
Addressing poverty in early childhood
Based on the evidence considered • Harnessing effective national and local
in this review, we believe addressing approaches to address concentrations
early childhood poverty requires of poverty and deprivation.
six key elements. • A better understanding of the relative
effectiveness (and costs) of different
• A multi-dimensional approach that policies in improving children's
reflects the range of socioeconomic outcomes over the medium and
risks and intersecting needs faced longer terms.
by families with young children. • Developing a greater consensus, not
• A financial bedrock for families with only across political divides, but also
young children living on a low income, at a societal level, on the measures and
through improved social security investment required to address child
benefits and access to employment, poverty now and in the future.
which takes account of the care needs
of the under fives.
• Greater attention and investment in
policies to support parental mental
health and parenting from the earliest
stage of a child’s life.
Nuffield Foundation Changing patterns of poverty in early childhoodScope and 7
The changing face of early childhood in the UK
methodology
This review focuses on changing patterns child poverty is a demanding target
of poverty, in particular for young children, as incomes for those in poverty have
who we define as those under the age of to rise faster than median incomes.
five. Socioeconomic circumstances— • Absolute child poverty is a lower
income, social class and educational threshold, which is fixed in real
background—each affect children’s terms—it is a minimum benchmark.
outcomes. This review has a particular Public policy, at the very least, should
emphasis on income poverty, but also be aiming to reduce absolute levels
addresses related issues of deprivation of poverty. However, during periods
and disadvantage. of slow economic growth or major
We draw principally on the DWP’s economic disruption, reducing absolute
Households below average income levels of poverty is more challenging.
(HBAI) statistics, as it is the main source
used in research funded by the Nuffield Our focus is primarily on the UK as
Foundation. It is supplemented by analysis a whole, though we touch briefly on
drawn from the Social Metrics Commission differences in the extent of child poverty
(SMC), which has developed an improved between nations and regions. There is not
measure of poverty, as well as other studies. sufficient space within this review to do
Drawing on HBAI, we primarily focus on justice to the different approaches within
measures of relative poverty, but we also the devolved administrations. Similarly,
include data on absolute child poverty. there is only brief discussion of the voices
In both cases we use ‘after housing costs’ and views of families who are living in
measures as housing is both an inescapable poverty themselves. While the Nuffield
cost and constitutes a large component Foundation has begun to fund research in
of expenditure for low-income families. this area, it is fairly limited. In both cases
we refer readers to other sources. 4
• Relative child poverty tells us about This review is designed to be an
how children are faring in relation to the informative, rather than all encompassing,
living standards of society as a whole— review of the literature on poverty in early
what is seen as an adequate standard childhood. We focused on studies published
of living in 2020/21 is different from that in the UK from 2010 onwards and included
in previous decades. Reducing relative both peer-reviewed and grey literature.
4 In relation to voice, see Lister (2016) for in-depth discussion of experiences of poverty and their
implications for the policy and politics of poverty. Examples of current initiatives include:
https://covidrealities.org, https://atd-uk.org, www.citizensuk.org, and www.povertyproofing.co.uk
[Accessed 19 July 2021].
Nuffield Foundation Changing patterns of poverty in early childhoodKey terms
• Absolute child poverty is the number • The Early Years Foundation Stage
and proportion of children living in Profile (EYFSP) is a teacher-based
households where household income assessment at the age of five. Achieving
is below 60% of the 2010/11 median a ‘good level of development’ is defined
income, which is held constant in real as a child reaching their expected level
terms after housing costs (adjusted for of development in personal, social
family size). This definition comes from and emotional development, physical
the Department for Work and Pension development, communication and
(DWP)’s Households below average language, literacy and mathematics.
income (HBAI) statistics, which are • We use the term ‘lone parent ’
based on the Family Resources Survey. to describe a parent who is not married
• The benefit cap is the limit on the and does not have a partner. The term
total amount of social security benefit does not distinguish between situations
that can be received by unemployed where a child has regular contact and/
households or those working less than or partly resides with their other parent
16 hours a week. Currently £20,000 and a child who solely resides with and
(£23,000 in Greater London). is cared for by one parent.
• Deep poverty, as defined by the • Low and severe low income are
Social Metrics Commission (SMC), defined as below 70% and 50%
refers to people living below 50% of contemporary median income
of the poverty line. The SMC’s measure before housing costs respectively.
of poverty takes into account a wider set Material deprivation is calculated by
of available material resources beyond analysing both the number of items
income and includes ‘inescapable’ costs: or activities that a child/family lacks.
housing (rental and mortgage), childcare, A child/family counts as being deprived
and disability. It looks at poverty depth, if they reach a score of 25.
persistence and the lived experience of • Minimum safety net is the financial
poverty, and uses a stabilised poverty support available from the state to
line (averaging over three years). help mitigate poverty.
• Deprivation is the inability of an • Persistent poverty is defined as
individual or household to afford goods being in poverty in this year and for
and services typical to a society at two of three previous years, using the
a given point in time. HBAI includes SMC measure.
measures that combine low income • Relative child poverty, as defined
and material deprivation. by HBAI statistics, is the number
• Destitution is defined as either and proportion of children living in
lacking two or more basic necessities households where household income
such as food, shelter and clothing, is below 60% of median contemporary
or having insufficient money to buy income after housing costs (adjusted
those essentials. for family size).
Nuffield Foundation Changing patterns of poverty in early childhood1 The scale 9
The changing face of early childhood in the UK
of child poverty
and deprivation
today—a snapshot
In this review, we use a widely accepted poverty and deprivation mean in concrete
definition of poverty as not having sufficient terms, and the headline figures in 2019/20
material resources such as money, housing prior to the outbreak of COVID-19.
or food, to meet the minimum needs—both We explore how and why child poverty
material and social—in today’s society.5 has changed over the last two decades
In this section we look at what child in Section 4.
Table 1: Weekly disposable income, after housing costs, adjusted for family
size for different family types in 2019/20. Source: Households below average
income (HBAI) (DWP 2021); Fitzpatrick et al. 2020.
Household type UK relative UK mean UK bottom Destitution
poverty line— income fifth income
60% of median
Single, working age £166 £3401.1 Child poverty Figure 1 shows the latest poverty rates 10
for 33 OECD member states as well as
The changing face of early childhood in the UK
Table 1 shows what relative poverty their average. The UK sits just above
means in cash terms per week for different this average.
family types and how this compares
to average incomes. A lone parent with
a child under the age of five is considered 1.3 Childhood deprivation
as being in relative poverty if they live on
an income after housing costs of less than Living on a low income also brings
£248 per week in 2019/20. A couple with deprivation. Looking at the combination
a young child are considered as being in of low income and material deprivation
relative poverty if they live on less than provides a window on the living standards
£342 per week. of families with children who are in or close
Box 1 shows that children face to poverty. The HBAI measure of material
a much higher risk of living in relative deprivation is based on asking parents
poverty than the population as a whole. whether they have access/can afford
a range of goods and services, including
child, adult and household items. Low
1.2 How do UK child poverty rates and severe low income are defined as
compare to other countries? below 70% and 50% of contemporary
median income before housing
Measuring poverty across countries is costs, respectively.
difficult and data can be unreliable. However, Box 2 shows the extent of low and
the Organisation for Economic Co-operation severe low income combined with material
and Development (OECD) has compiled deprivation among families with children
data for some of its 37 member nations today. Again, children in households where
since the early 2000s, including child the youngest child is under five are at
poverty. The OECD defines poverty a slightly higher risk of material deprivation
as half the median household income than their counterparts. A family/child may
of the total population before housing not reach the threshold for being counted
costs—which is a lower poverty line than as deprived, but still experience some
the one that is used in the UK and this review. degree of deprivation (DWP 2021).
Box 1: Relative child poverty in the UK, 2019/20.
• 14.5 million people in the UK (22% of the total population) live in relative poverty.
• 4.3 million children (31% of all children) live in relative poverty.
• 2.2 million children (36%) in families where the youngest child is aged
under five are living in poverty.
Source: HBAI (DWP 2021).
Nuffield Foundation Changing patterns of poverty in early childhoodFigure 1: Children in poverty in OECD member states, 2016–2018 (before 11
housing costs). Source: OECD 2021. Latest dates vary in each country between
2016 and 2018. The term ‘children’ applies to those aged 0–17 years old.
USA 17.8%
Mexico 16.6%
Italy 13.9%
UK 11.7%
Average 11.2%
Germany 10.4%
France 8.5%
Finland 6.5%
Israel 4.9%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
Box 2: Children living in families on low incomes and in material
deprivation in the UK, 2019/20.
• 1.7 million children (12% of the total child population) are living in families
on both low incomes and in material deprivation.
• 663,000 children (5% of the total child population) are living in families
on severe low income and in material deprivation.
• Of those living in families on both severe low income and material deprivation
389,858 (6%) are in families where the youngest child is under five.
Source: HBAI (DWP 2021).
Nuffield Foundation Changing patterns of poverty in early childhoodThere are marked inequalities in going wrong and the impact this has 12
material deprivation between the top and on children’s experiences. Strikingly,
The changing face of early childhood in the UK
bottom fifth of the income distribution access to the internet and digital devices,
(see Annex for detail). Box 3 gives now considered a necessity, is not
a sense of the pressures and constraints included in the questions about material
that families who are living on low deprivation in 2019/20. There is also
incomes face in terms of health, debt, no measure of deprivation that is specific
basic repairs and not being able to put to the under‑fives rather than children
money aside for a rainy day or things as a whole.
Box 3: Material deprivation for bottom and top fifths of the income
distribution for children and parents.
Percentage of children in the bottom Percentage of parents in the bottom
and top fifths of the income distribution and top fifths of the income distribution
who cannot afford or access essential who cannot afford or access essential
items/services in 2019/20 items/services in 2019/20
• 10% of children in the bottom fifth • 13% of parents in the bottom fifth
do not have access to outdoor space cannot afford to keep their house
or facilities to play safely compared warm compared to 1% in the top fifth.
to 1% in the top fifth. • 17% of parents in the bottom fifth
• 14% of children in the bottom fifth cannot keep up to date with their bills
cannot afford sports equipment compared to 2% of parents in the
or a bicycle compared to 0% in top fifth.
the top fifth. • 40% of parents in the bottom fifth
• 11% of children in the bottom fifth cannot cannot replace broken electrical
afford to go on a school trip once a term goods compared to 1% in the top fifth.
compared to 0% in the top fifth. • 52% of parents in the bottom
• 4% of children in the bottom fifth cannot fifth cannot make savings of £10
afford fresh fruit and/or vegetables daily a month or more compared to
compared to 0% in the top fifth. 7% in the top fifth.
Source: HBAI (DWP 2021).
Nuffield Foundation Changing patterns of poverty in early childhood2 Why is poverty 13
The changing face of early childhood in the UK
an essential lens
to understand early
childhood today?
Poverty affects children’s immediate UK show marked inequalities. For example,
experiences and well-being, and for some infant mortality rates in deprived areas
it also shapes long-term life chances. of England were almost twice the rate
There is a large body of research that of those living in the least deprived areas
shows a strong association between family in 2018 (ONS 2020). Family income and
income and children’s early development. socioeconomic status influence how
This is both because poverty has a direct young children develop (Feinstein 2015
impact on the amount of money a family a. b.; Jerrim and Vignoles 2015; Law,
has to spend on essentials, and also Charlton, and Asmussen 2017). Asmussen
the stress and strains associated with et al. (2018) show how income-related
managing on very limited budgets, which gaps in a range of cognitive skills are
can affect parents’ sense of agency, evident well before a child reaches three
psychological well-being and relationships years old. Drawing on a range of research
within the family. However, this does not based on the UK Millennium Cohort Study
mean that this relationship is determined, (MCS) they find that family poverty
but that children growing up in poverty is strongly associated at the age of
on average are more likely to have poorer three with both poor vocabulary and
outcomes (Dartington Service Design understanding of objects—that is, their
Lab and Family Nurse Partnership 2018; physical properties, understanding how to
Marmot et al. 2020). Parents who live categorise them and relationships between
in poverty have a range of coping and objects. Experience of hardship in the first
budgeting strategies to give their children year of life strengthened this association.
the best possible opportunities given their Asmussen et al. find a stronger
circumstances (Lister 2016; Brewer and association between income and
Patrick 2021). cognitive skills (thinking, reading, learning,
memory, reasoning) than between social
and emotional ones. They also identify
2.1 Gaps emerge early protective factors that mitigate the
detrimental impact of poverty: a higher
Gaps between how children develop maternal age, maternal education,
emerge at the start of a child’s life. breastfeeding and a stimulating
Differences in infant mortality in the learning environment.
Nuffield Foundation Changing patterns of poverty in early childhoodWork by Schoon et al. (2013), using remains wide—standing at 17.8 percentage 14
the MCS, explores the role of poverty and points in 2019. While there was some
The changing face of early childhood in the UK
other factors (such as parental education, narrowing of the gap between 2007
family stability and parenting) on early and 2012, and between 2013 and 2017,
child outcomes at nine months, three years progress has since stalled with a slight
and five years. Schoon et al. find poverty widening of the gap over the last two
is associated both with poorer academic years. We will explore this in more detail
attainment and social and emotional in our forthcoming review on early years
adjustment in early childhood (2013). education and childcare.
Income has an ‘independent association’
with children’s cognitive development and
behaviour, over and above other factors: 2.2 How does poverty influence
maternal age, parental education, social childhood outcomes?
class, worklessness, housing tenure
and conditions, the number of siblings, Most of the research on poverty and early
area deprivation, and instability in the childhood development shows an
family. Family structure and instability association between income and
also have an independent risk, especially outcomes rather than a causal relationship.
in relation to young children’s social However, work by Cooper and Stewart
and emotional adjustment. But it is the (2013; 2017a) found a causal relationship
combination of different risk factors between income and a number of key
that has the strongest impact. A review child outcomes. Their review of 61 studies
of the latest data on early childhood that used randomised control trials,
inequalities and their impact on later child quasi-experimental designs and analysis
and adult outcomes is being conducted of longitudinal data found that ‘money in
as part of the Institute for Fiscal Studies itself does matter’ (Cooper and Stewart
(IFS) Deaton Review of Inequalities 2017a, p.1). Income has a particularly
(Cattan, Goodman, and Fitzimmons marked impact on children’s cognitive
forthcoming). development, followed by social, emotional,
The link between poverty and and behavioural development and
children’s outcomes can be seen in physical development.
the gap in school readiness, with long- Explaining how poverty influences
term consequences for children’s later children’s outcomes is important in order
educational achievement. On average, to understand what policies are likely to
40% of the overall development gap make the most difference. Cooper and
between disadvantaged 16-year-olds and Stewart (2017a) draw on two theories—
their peers has already emerged by the age the investment model and the family
of five (Children’s Commissioner 2020a). stress model.
The Early Years Foundation Stage Profile
(EYFSP), a teacher-based assessment at
the age of five, captures cognitive, social 2.3 The direct impact of poverty
and emotional and physical measures (investment model)
of child development. Stewart and Reader
(2021) show how the gap between those In the investment model, poverty has
children receiving free school meals a direct impact on children’s everyday
(a proxy for poverty) and other children experiences and their development—
achieving a ‘good level of development’ for example, a lack of money or other
Nuffield Foundation Changing patterns of poverty in early childhoodmaterial resources means pressure on Start food vouchers, only reach a minority 15
household budgets and not being able of young children living in poverty (Food
The changing face of early childhood in the UK
to buy essentials. Foundation 2019).
As identified in Section 1, families
with children in the poorest fifth of the
income distribution are much more likely 2.4 The indirect impact of poverty
to experience material deprivation than (family stress model)
those in the top fifth. The experience
can be pervasive—hunger and food The family stress model highlights
insecurity, limited space and poorer housing how poverty is not only experienced
conditions, less access to safe places and materially and socially, but also
fewer opportunities to play (DWP 2021), emotionally. Financial stress, not having
fewer school trips and limited access to an adequate income or work, reverberates
the internet (Judge and Rahman 2020). through family life. It affects the way in
Not having enough to eat or being able to which love and care are both expressed
eat nutritious food is the starkest aspect and undertaken.6 Poverty influences
of child poverty and has been thrown into child outcomes indirectly where lack
sharp relief by COVID-19 (see Section 5). of income and economic pressure can
For the first time HBAI has included data lead to psychological distress, lack of
on food insecurity and finds children control and choice (Mohamed 2020),
significantly more likely to be food insecure, and the experience of stigma (Lister
particularly if they are in poverty (see Box 4). 2020), all of which can in turn affect
Maternal nutrition and the quality of babies relationships within the family both
and young children’s diets affects between parents and parenting practices.
later health outcomes and obesity This is illustrated in Figure 2 (Acquah
(World Health Organization (WHO) 2016). et al. 2017; Eisenstadt and Oppenheim
The Food Foundation's Children's Future 2019). The research also identifies
Food Inquiry found that policies designed protective factors such as maternal
to address food insecurity, such as Healthy social support, neighbourhood factors,
Box 4: Food insecurity for households with children of all ages.
• 1.7 million children (13%) are living in households with low or very low food security.
• 1.1 million children (26%) living in relative poverty are in food insecure households.
Source: HBAI (DWP 2021). Food insecurity is defined as the disruption of food intake or eating patterns because
of a lack of monetary or other resources.
6 See Professor Ann Phoenix’s response at a Nuffield Foundation webinar on 26 November 2020 [online].
Available from: www.nuffieldfoundation.org/events/well-being-in-early-childhood-how-are-the-lives-of-
families-with-young-children-changing [Accessed 21 July 2021].
Nuffield Foundation Changing patterns of poverty in early childhoodeffective coping strategies and Service Design Lab and FNP 2018). The 16
communication skills. The economic latest SMC report (2020) shows that in
The changing face of early childhood in the UK
pressure in Figure 2 encompasses 2018/19, 34% of people in poverty had
being on a low income and facing debt. one or more adults in the family with poor
Financial pressure and stress can also self‑reported mental health compared
affect parents’ ‘cognitive bandwidth’— to 24% of those who were not in poverty.
the mental space and effort involved in The report also finds that 27% of people
being an attentive and responsive parent in poverty were behind in paying bills
(Cobb‑Clark, Salamanca, and Zhu 2016)— compared to 7% of those who were not
as well as affecting decision-making in poverty.
(Gandy et al. 2016). In a key study on poverty and
Poor families experience greater parenting, Cooper (2017) finds that
stress as part of their everyday lives hardship—debt, deprivation and ‘feeling
than more advantaged families, with poor’—is linked to poorer maternal
a range of psychological consequences mental health and lower life satisfaction
(Duncan et al. 2014, cited in Dartington and this negatively relates to or
Figure 2: Family stress model. Adapted from Acquah et al. 2017.
Note this figure assumes a two-parent heterosexual relationship, though
it does not assume that the parents are necessarily living together.
Father’s
psychological
distress
Economic Inter-parental Parent—child Child
pressure conflict problems problems
Mother’s
psychological
distress
Nuffield Foundation Changing patterns of poverty in early childhoodundermines parenting. This is particularly organisation of family life. However, 17
the case in relation to bonding with the some children in families with low income
The changing face of early childhood in the UK
child, harsher and permissive discipline or fewer family resources but with
and play. Mothers’ mental health is high parenting scores were doing well.
a much less important factor in shaping Kiernan and Mensah estimate that half
parents' educational activities and of the effects of poverty on early child
meeting children’s physical needs and outcomes are associated with the quality
routines. The impact of the pandemic of parenting. However, the authors point
on parents’ economic security and out that this is not a causal effect; poverty
mental health (see Section 5) is may be mediated by other factors such
particularly worrying in relation to as maternal mental health.
its potential impact on children’s The association between
well‑being and outcomes. socioeconomic status (income and
Research undertaken by parental education) and children’s
Kiernan and Mensah (2011) examines cognitive and social, emotional
the relationship between poverty, and behavioural outcomes is also
family resources7 and young children’s evident when children reach middle
attainment, with a particular focus on the childhood aged 7–9 (Washbrook,
role of parenting. Using the MCS, they Gregg and Proper 2014). They find that
found that children growing up in families mothers’ poorer psychological health
in poverty or with low family resources is an important mediator between
had poorer outcomes at the age of family income and children’s outcomes.
five, particularly for those in persistent Poverty is also associated
poverty. Kiernan and Mensah also with children being at risk of greater
found that children in families who had vulnerability or harm. We explore this
moved out of poverty still experienced in depth in the second review of this
a detriment to how well they were series, Protecting young children at risk
doing—a reminder of the need for policy of abuse and neglect, which shows that
responses to encompass families above socioeconomic circumstances, local
as well as below the poverty line. They area deprivation and ethnicity influence
devise a composite index of parenting the likelihood of children coming into
comprising four elements: reading and care (Bywaters and Featherstone 2020).
learning, relationships and interaction, That risk is even higher for younger
physical care and nutrition, and positive children. Importantly, this does not mean
and negative discipline. Using this index, that all children in poverty are vulnerable
they found that ‘positive parenting’ is lower or vice versa. However, families with
among families living in poverty or with young children who are in or close to
fewer family resources. The experience poverty are more at risk of experiencing
of disadvantage can ‘disrupt’ how parents a range of other difficulties such as
engage with their children—whether debt, a change in employment or
that is parent-child interaction, cognitive housing, poor physical and mental
stimulation, disciplinary practices or health and domestic violence
7 This includes income, maternal education, employment, quality of local area, family structure,
maternal age at birth and number of children.
Nuffield Foundation Changing patterns of poverty in early childhood(Skafida, Morrison, and Devaney 2020). that links household poverty with different 18
This layering of difficulties on top aspects of childhood vulnerability.8
The changing face of early childhood in the UK
of each other, combined with having
fewer financial, educational, emotional
and social resources to act as a buffer, Point for discussion
can tip families and their children into
being vulnerable. • What balance should public policy
The Office of the Children’s strike between measures to address
Commissioner for England (2020b) poverty at source and those which
estimates that in 2019, some 17% (557,512) support parents’ mental health, family
of children under five lived in a household relationships and parenting to mitigate
with domestic abuse, parental mental the impact of poverty on young
health problems or parental alcohol/drug children's lives?
abuse. However, there is no data available
8 This is because of limitations in the Family Resources Survey, which is the source for HBAI, and limited
linkage between different administrative data sets in England.
Nuffield Foundation Changing patterns of poverty in early childhood3 How has 19
The changing face of early childhood in the UK
public policy
addressed early
childhood poverty?
Over the last 25 years, successive The state is not always the key actor.
governments have attempted to address For example, employers, the community
the changing causes and impacts of child and social investment can also play
poverty. Before we go on to identify those a role. Governments of different political
changing patterns in the next section, persuasions have emphasised different
we set out briefly the UK policy context levers to address child poverty.
in which they have occurred. The London School of Economics
Policy responses to child poverty (LSE) Centre for the Analysis for
since 1996/97, shaped by political Social Exclusion (CASE) has undertaken
differences and socioeconomic a substantial assessment of the changes
circumstances, have tried to grapple in social policy over this period and their
with the new pressures facing families impact on early childhood outcomes
with young children with varying degrees (Hills and Stewart 2005; Hills, Sefton, and
of success. Core solutions to the Stewart 2009; Lupton et al. 2015; Cooper
pressures faced by families and children and Hills 2021; Stewart and Reader 2021;
have proven difficult to maintain in Vizard and Hills 2021). See Annex for
a climate of increasingly complex further detail.
drivers, economic shocks and shifting
political priorities.
Public policy responses to child 3.1 Labour governments 1997–2010
poverty have tended to fall into two broad
approaches: reducing pressures on There are distinct differences between
families, and increasing their capabilities each political administration in relation
(Eisenstadt and Oppenheim 2019). As to goals, approach and funding
shown in Figure 3, this includes: tackling of measures to address child poverty
income poverty at source through (Eisenstadt and Oppenheim 2019).
financial transfers, parental employment There are also points of continuity.
and education; addressing mediating Under successive Labour governments,
factors such as mental health support the ambitious goal to eradicate child
for parents; parenting interventions; and poverty in a generation (later embodied
enhancing children’s capabilities through in legislation) catalysed a multifaceted
quality early years and childcare provision. strategy. It encompassed the creation
Nuffield Foundation Changing patterns of poverty in early childhoodof new services such as: Sure Start centres the creation of universal early years and 20
integrating services for the under-fives; childcare services, a doubling of spending
the expansion of nursery provision and on cash benefits for families with children,
childcare; and major investment in tax and a fourfold increase in spending on
credits for families with children. Buoyed services for the under-fives (Stewart 2013).
by a growing economy until the financial This contributed to a reduction in relative
crash, by the end of their term in office, child poverty of seven percentage points
the policy landscape had changed, with (Hills 2013) and very sharp decreases in
Figure 3: Types of public policy to address early childhood poverty
and its consequences.
Income transfers
e.g. benefits,
Employment tax allowances
and skills Asset transfers
initiatives, e.g. child trust fund
minimum wage
Reducing costs Benefits in kind
e.g. childcare e.g. free meals
Tackling child poverty Early
intervention
Quality e.g. family
early years relationships and
provision home learning
programmes
Public health Maternity and
initiatives e.g. paternity leave
health visitors
Community-based
Social investment
approaches
Policies primarily aimed at reducing pressures
Policies primarily aimed at increasing parent/child capabilities
Policies that both reduce pressures and increase capabilities
Nuffield Foundation Changing patterns of poverty in early childhoodabsolute child poverty. However, there were worst affected by the tax/benefit 21
was concern in some quarters that child changes. The local government reductions
The changing face of early childhood in the UK
poverty targets incentivised short-term led to a 40% reduction in Sure Start and
income measures to tackle child poverty, very limited provision for early intervention
the tax credit/benefit system was growing and prevention (National Audit Office
in cost and complexity and family policy (NAO) 2019).
sat alongside rather than being integrated
into the child poverty strategy.
3.3 Conservative governments
2015–present
3.2 Coalition government 2010–2015
The Conservative government aimed
The coalition government was committed, to reduce child poverty by tackling ‘the
in principle, to the goal of ending child root causes: entrenched worklessness,
poverty, but at the same time implemented family breakdown, problem debt and drug
a sharp reduction in public spending and alcohol dependency’ (Conservative
on welfare in the wake of the financial Manifesto 2015, p. 28). The statutory
crash. It signalled a marked change child poverty targets were replaced by
in approach, with a shift from income two life-chances indicators: workless
measures to improving services for low- households and educational attainment
income families, emphasising parenting at age 16. The 2015 budget signalled
and early years provision as key policy a further reduction in welfare spending
levers to reduce poverty and increase (£12 billion) and the ‘two-child benefit limit’
social mobility (Field 2010). Universal to discourage the growth of large families
credit, a radical reform that aimed to (see forthcoming evaluation of the impact
simplify the major means-tested benefits of this policy on fertility by Portes et al).
and improve incentives, was introduced Universal credit was rolled out, but with
(Brien 2009). Over this period health visitor a greatly reduced budget as well as design
numbers grew, family nurse partnership and implementation difficulties. The 2018
(FNP) programmes (helping vulnerable budget signalled a change of direction with
teenage parents) expanded, an early a major injection of cash to universal credit.
intervention grant was introduced However, substantial reductions to welfare
(though later reduced), and free part- spending were still in the pipeline.
time early education was introduced for Alongside these changes to welfare there
disadvantaged two-year-olds, as well as was a continued fall in investment in Sure
the early years pupil premium. At the same Start centres. In contrast, childcare for
time there was a reduction in measures to working parents has continued to grow,
improve childcare quality and workforce with the implementation of 30 hours
qualifications. These measures were of free childcare for working parents,
overshadowed by major public spending social mobility measures to narrow the
reductions, focused on welfare benefits/ early childhood language gap, including
tax credits for those of working age and the roll-out of the Nuffield Early Language
children, as well as local government, Intervention to support young children’s
which disproportionately affected oral language, and measures to address
deprived areas. Analysis by De Agostini, parental conflict. Latterly, the focus on
Hills, and Sutherland (2014) shows that ‘left-behind’ parts of the country signals
families with young children under five a new emphasis on addressing regional
Nuffield Foundation Changing patterns of poverty in early childhoodFigure 4: UK governments and examples of major child-poverty related 22
policies/legislation, 1997–2020.
The changing face of early childhood in the UK
1999 2010 2020
Pledge to end Cross-party COVID-19 job
child poverty by support for retention scheme,
2020 and income Child Poverty increase to
and services 2004 Act (2010) universal credit
measures Ten-year childcare basic allowance,
strategy and Every Early Years
Emergency Budget
Child Matters Healthy
aim of £11bn reduction
in welfare spending by Development
2014/15 and introduction Review
of universal credit
60%
50%
Percentage of children in relative poverty
40%
30%
20%
10%
0%
11
97
17
12
13
98
15
18
99
14
16
19
01
10
07
02
03
20
05
08
04
06
09
00
20
20
20
20
20
20
20
20
20
20
20
19
19
20
19
20
20
20
20
20
20
20
20
20
2002 2013
Child tax credits Services not
introduced via income measures
the Tax Credits e. g. childcare
Act (2002) for disadvantaged
two-year-olds
2016
Welfare Reform and Work Act
and Childcare Act (2016)—
1998
child poverty targets abolished,
Establishment
welfare reductions of £13bn per
of Sure Start and
year by 2020/21, 30 hours free
working families
childcare for working parents
tax credit
of three- and four-year-olds
Labour 1997–2010 Coalition 2010–2015 Conservative 2015–present
See Annex for further detail on flagship policies and sources. It is important to note that there is a time-lag
between policies being introduced and their impact on poverty rates and that policies interact with wider
economic circumstances (see p. 25-6).
Nuffield Foundation Changing patterns of poverty in early childhoodinequalities, with a primary focus on intervention, particularly the early years. 23
infrastructure measures to address While targets based on reducing child
The changing face of early childhood in the UK
longstanding disadvantage. Child poverty poverty in the UK were abolished in
rates have been rising since 2013/14, 2015, Scotland, Wales and Northern
with particularly sharp rises in poverty Ireland retained measures of poverty
for families where the youngest child is based around the UK Child Poverty Act
under five (see Section 4). 2010.9 Scotland has now legislated for
In the devolved nations there has new measures and targets, including
been a different approach, with a sustained a new means-tested child payment
emphasis on prevention and early for children under six.
Figure 5: Cumulative change in social security and tax credit spending since
2009/10. Source: Vizard and Hills 2021.
£ billion (constant 2019/20 prices)
15
12
9
6
3
0
-3
-6
-9
-12
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
Children Working age Pensioners
9 For analysis of the devolved nations’ approaches to poverty, see: McCormick 2013; Rogers 2019;
and Round and Longlands 2020.
Nuffield Foundation Changing patterns of poverty in early childhoodCOVID-19 has brought most effective way to address child 24
unprecedented challenges. The poverty and disadvantage in changing
The changing face of early childhood in the UK
government responded with a very contexts. There has been extensive
substantial package of measures to analysis of the impacts of public policy
protect living standards in the wake on poverty and wider child outcomes
of the pandemic, which has protected undertaken by CASE and others.10
many families. However, despite However, since 2010, there has been no
its scale, many have experienced consistent policy framework and limited
financial difficulties (see Section 5). modelling of the relative effectiveness of
The combination of differing medium and long-term benefits and costs
political goals in relation to child poverty of different kinds of policy that encompass
and the sharply fluctuating economic the range of levers highlighted in Figure 3.
context has translated into marked There has been little attention paid to
changes in public spending on social how to develop wider public support for
security/tax credit spending over the the kind of measures that are needed
last two decades. Under Labour, overall to get to grips with the scale and nature
spending on benefits/tax credits per child of child poverty that we face today and
increased in real terms by 61% between in future.
2000/01 and 2009/10; under the coalition
and the Conservatives, it fell by 17% in
the following decade (Kelly et al. 2018). Points for discussion
Figure 5 shows the marked cumulative
fall in public spending on social security/ • Given the evidence of the impact
tax credits for children since 2010 in of the deep reductions in social
contrast to the growth in spending on security on child poverty and longer-
pensioners (Vizard and Hills 2021). This term child development, what are the
fall in spending on children and families, priorities for redressing this? Should
in combination with other factors, has public policy prioritise families with
driven the rise in child poverty since young children who are in deep and
2013/14. Progress has also stalled persistent poverty or take a wider
on some indicators of child welfare preventative approach?
such as infant mortality, birthweight, • Core solutions to addressing early
early childhood obesity and early child poverty have been difficult
learning inequalities (Stewart and to realise and maintain over the
Reader 2021). last two decades. What scope is
What is also apparent is the there for developing a cross-party
complexity of the policy responses as approach to prioritising this issue
each government layers its own policies and developing sustainable solutions
on top of what has gone before, with that meet the challenges of the
little political consensus about the 21st century?
10 See, for example: www.nuffieldfoundation.org/project/social-policies-and-distributional-outcomes-
in-a- changing-britain [Accessed 23 July 2021].
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