Hermione Parker is not concerned with value-judgement of how
low- income families spend the money they have, nor with prescribing-judgement
on how low-income families should spend the money they have; but
with the actual preferred spending patterns of low-income families.
Underlying her research is the quest for social justice.
Using a modified form of budget standards methodology, this report
estimates the needs and living costs of two parents and lone-
parent families, each with a boy aged 10 years and a girl aged
4 years, to maintain indefinitely a Low Cost but Acceptable (LCA)
living standard. The purpose of LCA is to provide reference points.
LCA marks the threshold below which, good health, social integration
and satisfactory standard of child development are at risks.
The budgets are only illustrative and elements of the budget
can be prioritised differently to suit individual families. What
is stressed is the need for each family to be able to make these
choices. The budgets also provide a small but necessary margin
for emergencies such as debts, breakage and illness. All the budgets
distinguish between what are called 'budget standard costs' and
'variable costs'. The above distinction can proved very useful
in court of Law to assess ability to pay fines, debts and maintenance
orders.
Her study shows that:
- Income support level are below LCA level
- A minimum wage of £3.60 will not prevent poverty
- At average female manual earnings the families are below LCA
level, at average male manual earnings they are not far above
it.
- For two parent families, the family credit ceiling is below
LCA level
- It is unlikely that Working Families Tax Credit will remedy
this situation
The strength of this study lies in the use of budget standards
methodology, which as Hermione Parker puts it gives 'attention
to detail'. If governments are really committed to prevent poverty,
attention to detail is a must. Only then may benefits rates and
income tax allowances bear more relation to need. Everyone can
manage temporarily on social security benefits, but it is long-term
dependency that causes problems such as debts. It is this issue
that Hermione Parker has tried to address. LCA budgets have been
developed to take accounts of the long-term needs of families
with children so that they can sustain themselves at a low cost
but acceptable standard without getting into debts.
