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Child Poverty Act 2010

Section 5: The absolute low income target

19.Section 5 sets the absolute low income target. The target is that less than 5% of children who live in qualifying households live in households that have an equivalised net income for the financial year below 60% of median income in the financial year beginning with 1 April 2010, up-rated annually in line with inflation. Many respondents to the consultation Ending Child Poverty: Making it Happen indicated that it was important for the Act to include an absolute low income target.

20.Subsection (3) provides a regulation-making power to set the calculation for up-rating the base amount annually, taking into account changes in prices. The regulations are likely to refer to the Retail Price Index. This regulation-making power is subject to the negative resolution procedure.

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