Secretary of State for Work and Pensions James Purnell outlined the government's fightback strategy following the local elections in a speech to the Fabian Society, declaring "ideological confidence is the way out of this week's political setback."
Purnell strongly backed Gordon Brown as the man best equipped to lead the country through choppy economic waters and whose "political career has been defined by consistent argument and action on child poverty"
He also announced a scheme to give interest-free loans to struggling families, saying "I would like nothing more than to put the loan shark out of business."
"It costs more to be poor," said Purnell. "And part of our response to the local elections has to be helping those on lower incomes with the cost of living."
The speech sought to outline how the government can continue progress towards meeting its target of eradicating child poverty by 2020 and halving it by 2010.
The child poverty target, said Purnell, gives Labour a purpose that "links Old and New Labour. The outrage we feel at the waste of lives lived in poverty is what links the Labour Party of 2008 with the Labour Party of 1908."
"In our frenetic and cynical age, when it is routine to say that politicians care only about survival, it is worth pointing out someone with a defining message based on belief rather than political calculation," he said.
"There aren't many votes in child poverty. But that doesn't matter one bit. The child poverty target is a question of belief. Of justice. Of what is right."
He celebrated that Labour have won the argument over relative poverty, forcing the Tories to 'have to say they agree that poverty is defined relative to the rest of society, or be out of step with the mood of the times."
But the Tories have to express something more than an "aspiration" to end child poverty, and until they come forward with firm proposals, they cannot be taken seriously.
"Nice isn't good enough. Until they pass the test of hardening their commitment and costing their policy, they cannot claim to be committed to ending child poverty. Lip service is not the same as commitment."
Purnell is optimistic about Labour's chances of winning the next election because, despite the disappointing local election results, "Labour's answer to the questions that voters asked is better than the Tory answer."
"This is not a tired government. It is a government that has a real energy, because it is confident that its answers are the right ones to the questions the public are asking."
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