Tuesday, July 15, 2014

Poor Britain

Research shows that the percentage of households who fall below society’s minimum standard of living has increased from 14 per cent to 33 per cent over the last 30 years, despite the size of the economy doubling. 18 million people cannot afford adequate housing conditions; 12 million people are too poor to engage in common social activities; one in three people cannot afford to heat their homes adequately in the winter and four million children and adults aren’t properly fed by today’s standards. Wages are low and working conditions are bad in many parts of the UK. One in every six (17 per cent) adults in paid work are poor – they suffer from both a low income and cannot afford basic necessities. For a large number of people, even full-time work is not sufficient to escape from poverty. Almost half of the working poor work 40 hours a week or more.  One third of adults currently in employment (35 per cent) are in ‘exclusionary work’ - in poverty, in low quality work and/or have experienced prolonged periods of unemployment in the last five years.

1) About 5.5 million adults go without essential clothing.
2) Around 2.5 million children live in homes that are damp.
3) Around 1.5 million children live in households that cannot afford to heat their home.
4) One in four adults have incomes below what they consider is needed to avoid poverty.
5) One in every six (17 per cent) adults in paid work are poor.
6) More than one in five adults have had to borrow in the last year to pay for day to day needs.
7) Far more households are in arrears on their household bills in 2012 (21 per cent) than in 1999 (14 per cent). The most common bills in arrears now are utility bills, council tax and mortgage/rent.

The poor children

One in every five (22 per cent) children and adults were poor at the end of 2012. They had both a low income and were also ‘multiply deprived’ - suffering from three or more deprivations such as lack of food, heating and clothing due to a lack of money.  The majority of children who suffer from multiple deprivations – such as going without basic necessities, having an inadequate diet and clothing - live in small families with one or two siblings, live with both parents, have at least one parent who is employed, are white and live in England, dispelling the myth that poverty in general and child poverty in particular is a consequence of a lack of paid work – a result of shirking rather than striving.
More than one in four adults (28 per cent) have skimped on their own food in the past year so that others in the household may eat. Despite this over half a million children live in families who cannot afford to feed them properly.
 93% of households where children suffer from food deprivation, at least one adult skimped on their own food ‘sometimes’ or ‘often’ to ensure others have enough to eat. Women were more likely to cut back than men - 44 per cent of women had cut back on four or more items (such as food, buying clothes and social visits) in the last 12 months compared to 34 per cent of men.

Professor Jonathan Bradshaw, from the University of York, said: “The research has shown that in many households parents sacrifice their own welfare - going without adequate food, clothing or a social life - in order to try to protect their children from poverty and deprivation.”

Nick Bailey, from the University of Glasgow, said: “The UK government continues to ignore the working poor; they do not have adequate policies to address this growing problem.”

Professor Glen Bramley, from Herriot-Watt University, said: “It is worrying that in the 21st century more than 40 per cent of households who want to use meals on wheels, evening classes, museums, youth clubs, citizens’ advice or special transport cannot do so due to unavailability, unaffordability or inadequacy.”

Young workers have suffered above average falls in pay, have found it harder to find a job, and in many cases have been forced to stay living with their parents, according to the Institute for Fiscal Studies (IFS), a leading thinktank,  that conducted research into official figures from 2008.

It found that average incomes for people in their 20s fell by 13% between 2007/08 and 2012/13, compared with an average fall for all workers of 10%, and only 7% for 31- to 59-year-olds. Finding a job proved to be a difficult task for those in their 20s, with the employment rate for 22- to 30-year-olds fell by four percentage points during the five years to April 2013, while the rate for the over-30s remained at pre-crisis levels.

"Young adults have borne the brunt of the recession," said Jonathan Cribb, a research economist at the IFS, and an author of the report. "Pay, employment and incomes have all been hit hardest for those in their 20s. A crucial question is whether this difficult start will do lasting damage to their employment and earnings prospects".

It found that young workers able to get on the housing ladder were cushioned by ultra low interest rates. A quarter forced to live at home with their parents also had higher than average disposable incomes, though the need for parental subsidies is likely an indication of the low pay rates and often insecure working practices on offer to younger workers.

Poor children have also suffered since the financial crash and through the recession that followed. The IFS said the official measure of child deprivation rose by 300,000 children in 2012–13, and has generally been on an upwards trajectory since 2007–08. Child deprivation is highest in London, which also has the highest rate of income poverty, once its higher housing costs are taken into account.

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