Poverty in the UK

by Michael Patrick O'Leary

This article appeared in Ceylon Today on March 292018

http://www.ceylontoday.lk/news-search/padraig%20colman/print-more/1616

 

In the UK, the DWP (Department of Work and Pensions changes its name every few years to protect the guilty. When I worked for it, it was called the SS) is more unloved than it ever was – and that is saying something.

A combination of austerity measures and a deluded faith in outsourcing has caused a great deal of extra suffering to already vulnerable people. The National Audit Office (NAO) has reported that 70,000 benefit claimants were underpaid by an average of £5,000 each since 2011. 20,000 people could be owed around £11,500 each and “a small number of people” could have been underpaid by £20,000.

There are many people who desperately need that money. Poverty is not just a problem for people who cannot find jobs. Even people in full-time work struggle to exist. Two-thirds (67 per cent) of children growing up in poverty, live in a family where at least one person works. A family might move into poverty because of a rise in living costs, a drop in earnings through job loss or benefit changes.

Data released by the UK Office for National Statistics (ONS) shows that in 2015, some 4.6 million (7.3 per cent) people were enduring “persistent” poverty. The technical meaning of ‘persistent poverty’ is living in relative income poverty in the current year and at least two of the three preceding years. The figure marks a 700,000 rise in people who are persistently poor since 2014, affecting 6.5 per cent of the population.

It is generally agreed that the effects of experiencing relative low income for long periods of time are more detrimental than experiencing low income for short periods. The proportion of women who were persistently poor in 2015 stood at 8.2 per cent, compared with 6.3 per cent of men – marking the biggest gender gap since data began in 2008. Such levels of poverty are having effects on people’s mental health.  Almost a third of the population was recorded as being at risk of poverty for at least one year between 2012 and 2015.The figures do not compare badly with other EU countries but things have got worse since 2015.

Poverty affects one in four children in the UK. There were 4 million children living in poverty in the UK in 2015-16 – look at it as 9 in a classroom of 30. That wonderful cosmopolitan city London has the highest rates of child poverty in the country. By GCSE, there is a 28 per cent gap between children receiving free school meals and their wealthier peers in terms of the number achieving at least 5 A*-C GCSE grade Men in the most deprived areas of England have a life expectancy 9.2 year shorter than men in the least deprived areas. They also spend 14% less of their life in good health.

According to a Joseph Rowntree Foundation report in 2011, in the year to 2009/10, the child poverty rate fell to 29%, the second fall in two years. Child poverty fell by around one-seventh under the previous Labour Government. More recently, Campbell Robb, the current chief executive of the Joseph Rowntree Foundation, warned of “signs we could be at the beginning of a sharp rise in poverty, with forecasts suggesting child poverty could rise further by 2021.”Government figures now show that 300,000 more people are now in poverty compared to last year

This suffering is not due to irresistible natural forces or even the spurious laws of economics. This is the result of boneheaded government policy. It has been government policy to impose austerity measures and cuts in public services and to entrust the administration of benefits to those more interested in profit than welfare. Many cuts have not yet worked their way through the system. Many of the most significant reductions to working age benefits will not be reflected in the 2016/17 figures but will bite harshly later on. Robb urged the government, “to restore the Work Allowances in Universal Credit to their original level.

By doing so, lower earners could keep more of their earnings ensuring they could reach a decent standard of living, benefiting over three million low income working households and protecting 340,000 people from being pushed into poverty by 2020 – 21.”

In a press release dated only a few days before I wrote this, 22 March 2018, Robb, said: “We share a moral responsibility to make sure that everyone has the opportunity to build a better life. The government must act to right the wrong of in-work poverty.”
We will see.