The objective of this simulation is to devise a package of measures that will reduce the level of child poverty in the UK.

You have four policy measures at your disposable. These policy measures cover changes in taxes, benefits and income.

Child poverty in the UK is a problem. It is a problem for both the individual and society.

The Social Inequalities Survey (2000 Edition) can be used to illustrate the degree of child poverty in the UK. If we assume that a child in a household has a high likelihood of being in poverty if it has a household income less that 60% of the median UK household income, then

in 1997-98, over 3 million children lived in households whose income is less than 60% of the median income (before housing costs) in Great Britain.

The UK Government suggests the characteristics of a household that suffers from child poverty tends to include;

• a single parent
• parent(s) unemployed
• household income is highly dependent on welfare payments
• large number of children within the family unit

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