Welsh Government does not hold the primary policy and fiscal levers, especially in terms of the welfare reform we talk of, needed to enable us to deliver the significant changes in relative income that would be required ahead of 2020. We cannot wait until then to have this discussion. Projections by the Institute for Fiscal Studies show that relative child poverty in the UK will rise significantly as 2020 approaches, partly as a result of the UK Government’s tax and benefit reforms. Living standards over the next few years will also be hit by a combination of higher prices and lower earnings. Real average earnings are forecast to still be below their 2008 levels in 2021. This means more than a decade without real earnings growth. A period like this has not been observed in the last 70 years.

Llywydd, the issues we face can only be tackled through new ways of working. Within a context of stretched resources and reducing budgets, we need to focus our efforts where we can have most impact with the levers we do have available. ‘Taking Wales Forward’ sets out how we will deliver change and make a difference to people’s lives in Wales; how we will create more jobs and better jobs through a stronger, fairer economy; how we will improve and reform our public services; and how we will build a united, connected and sustainable Wales.

Increasing well-being and economic prosperity are fundamental to improving outcomes for vulnerable children, including those living in poverty. The key commitments outlined in our programme for government will help drive the tackling poverty agenda over this term of Government, providing direction for our work, which will support disadvantaged children to get the best possible start in life.

Our 2010 Children and Families (Wales) Measure will continue to provide the legislative framework for tackling child poverty here in Wales. As you’re aware, this places a duty on Welsh Ministers and named public bodies to set objectives for tackling child poverty. We also have the opportunity to use the Well-being of Future Generations (Wales) Act 2015 to support a nation, all-Wales approach to tackling poverty and reducing inequalities, maximising our collective impact in uncertain times with the levers we do have at our disposal. Under the 2015 Act, a set of 46 national indicators for Wales will measure national progress towards achieving the seven well-being goals. A number of these are the same as the population indicators being used to assess progress in achieving the objectives of the 2015 child poverty strategy, including educational attainment, the number of young people who are not in education, employment or training, employment, health outcomes and skills.

Progress in tackling child poverty at a Wales level will be assessed using the national indicators underpinning the Well-being of Future Generations (Wales) Act on which the Welsh Government can have most effect. Llywydd, we will report on the national indicators through the annual well-being report for Wales. In 2019, we will also publish our next strategy report on the extent to which the objectives in our child poverty strategy have been achieved, as required under the Children and Families (Wales) Measure.

We have said before: we cannot tackle poverty alone. Only by working in partnership can we hope to achieve the level and pace of change that are needed to reduce child poverty in Wales. In November, we set out the well-being objectives that will demonstrate our commitment to supporting families and have a clear focus on tackling poverty. In particular, objective 1 aims to create conditions to give every child the best start in life.

I firmly believe that this is the time for a new, whole-Government approach to building resilient communities to help us deliver on this agenda. This will focus on three key themes: early years, employment and empowerment—delivering communities that can offer children the best start in life; communities that are ready and able to work; and communities that are empowered and engaged, as well as being safe and strong.

I’ve also invited organisations to join with us to develop children’s zones to help improve the life chances of children and young people who are living in Wales. Llywydd, we need to support families when they most need it and equip services to respond to the challenges of our modern times. Our ambition is to make a difference for everyone, at every stage in their lives, now and for the longer term. Thank you.