Children, well-being and taxes and benefits: Part I

The current Labour Government wants to reduce the level of child poverty in this country. In 1999, Tony Blair, the Prime Minister, declared: ‘our historic aim will be for ours to be the first generation to end child poverty’ (Beveridge Lecture, May 1999). Partly to achieve this aim, the Government is also increasing the amount of financial support that it directs to parents through the tax and benefit system. Can economic analysis add anything to these important aspects of public policy?