The research under this heading draws together inter-related interests in the role of local services and, more widely, of government policy on poverty and income dynamics. We are paying particular attention to understanding the impact of social policies on child development and education outcomes for children living in low income households. The research seeks to understand the impact of local services on child development, looking specifically at health, social services and education across neighbourhoods and the impact of service quality on child outcomes. We are also seeking to unpick the evolution of poverty to assess the relative importance of demographic change, social change, labour market events and policy interventions both at the aggregate level and for different types of families and individuals.