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How many people are in poverty in the UK?

The easy answer is to say around 22% of the population, roughly 14 million people. The long answer starts with the sentence ‘it depends on how you define and measure poverty’, in which case you get various different statistics on the poverty rate.

Statistics on poverty in the UK

According to the Social Metrics Foundation, which seems to be endorsed by the Joseph Rowntree Foundation….

  • 22% of the UK population are in poverty, equivalent to 14.2 million people: 8.4 million working-age adults; 4.5 million children; and 1.4 million pension age adults. Source: The Social Metrics Foundation, 2018.
  • 1% of the total UK population (7. 7 million people) live in persistent poverty. Source: The Social Metrics Foundation, 2018.

This definition of poverty is broader than any previous definition because:

  • It takes account of all material resources not just incomes. For instance, this means including an assessment of the available assets that families have; •
  • It takes into accounts the inescapable costs that some families face, which make them more likely than others to experience poverty, such as the extra costs of disability, and costs of childcare and rental and mortgage costs; •
  • It automatically defines anyone who is ‘sleeping rough’ as being in poverty.

However, it also sets the relative poverty line at 55% of median income rather than 60^ of median income (as the government has done for many years), seemingly because to keep it at 60% while making all of the other changes above would put too many people in poverty?!? See page 63 of the report for more details:

poverty rate UK 2018.png

 

According to the Government’s own data:

  • 16% of UK households were in relative low income households (before housing costs)
  • 22% of UK households were in relative low income households (after housing costs).

Relative low income households have an income of less than 60% of median household income (equivalised), which is equivalent to £296 per week (or approximately £1000 per month). Source: Households Below Average Income, published March 2018.

Households in poverty UK.png

7.3% of the UK population (4.6 million people) are in persistent poverty. This study defines ‘persistent poverty as being in a relative low income household (using the BHAI definition of this) consistently for 3 years. Source: Persistent Poverty in the UK and the EU: 2015.

Which of these is the most valid measurement of poverty?

You’ll notice that there’s some different between these figures, especially between the Social Metric Commissions’ persistent poverty rate and the ONS’ poverty rate – 12% compared to 7%, so it really matters which of these is the most valid!

Given that the Social Metrics Commission’s definition was agreed by a large panel of people, which included government representation, I’m going to say the SMC’s definition/ measurement is the most valid.

Whatever measurement you use, poverty statistics are a terrific example of how statistics are socially constructed.

 

 

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Bank of mum and dad: increasingly important for getting on the property ladder!

Young adults have become increasingly dependent on financial support from their parents to finance their first house purchases.

Those without access to parental support (i.e. those with poorer parents) are less likely to be able to get on the property ladder. 

This is according to the latest research from the Resolution Foundation with examines the impact on parental wealth on home ownership, exploring the relationship between parental support and the ability of young adults today to purchase their first property. 

Some of the key findings of the report were as follows:

The children of wealthier parents are much more likely to become homeowners themselves: from the mid 2000s, children with parents with property wealth were three times as likely to become homeowners as those without property wealth. 

The children of wealthier parents become homeowners at an earlier age than those of less wealthy parents. 

The report also found that:

    • This relationship continues to hold even once someone’s salary, their education, where they live and whether they are in a couple or not are all taken into account.
    • The relationship between parental wealth and their children’s homeownership has risen over time.

The significance of these statistics:

This is bleak reading for anyone interested in economic equality, because this trend suggests that what’s occurring here is the reproduction of class inequality.

The findings of this report will probably come as no surprise to anyone, it just seems to be confirming what is really damn obvious!

This report is probably a good example of a document that’s been produced because of a value-agenda (so the choice of topic is not value free!) and yet the research is probably ‘objective’ in the sense that it’s difficult to bias these figures…. finances tend to be ‘hard statistics’ and it’s difficult for researchers to skew them, even if they want a certain outcome!

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The relationship between religion and social class

The relationship between social class and religion is not straightforward: the middle classes are, in general, more likely to attend church, but they are also less likely to believe in God and more likely to be atheists and join both world affirming and world rejecting NRMs.

The working classes are less likely to attend church, yet more likely to believe in God than the middle classes. There are also certain denominations and even sects which might appeal specifically to the working classes: such as Methodism, for example.

Church attendance and social class

The ‘middle classes’ have higher rates of church attendance than the ‘working classes’

  • A 2015 YouGov survey of 7000 adults found that 62% of regular church goers were middle class and 38% working class.
  • The same 2015 survey found that twice as many married working class men had never attended church compared to middle class men (17% compared to 9%).
  • Voas and Watt (2014) conducted research on behalf of the Church of England and made three observations not directly about social class, but relevant to it. Firstly, church attendance is higher in rural areas compared to urban areas. Secondly, church attendance is higher in the South of England compared to the North. Thirdly, they noted growth in church attendance in areas which had high performing church primary and secondary schools. All of these indicators suggest higher church attendance in middle class compared to working class areas.
  • Ashworth and Farthing (2007) found that, for both sexes, those in middle class jobs had above average levels of church attendance. Conversely, those in skilled, semi-skilled and unskilled working class jobs had below average church attendance. Welfare recipients had the lowest levels of church attendance.

Religious belief and social class

  • A 2016 YouGov Survey revealed that 48% of those in social grades ABC1 described themselves as ‘Atheist’ compared to 42% of those in social grades C2ED.

  • A 2013 review of >60 research studies on the relationship between IQ and religiosity found that people with higher IQs are more likely to be atheists. (High IQs are correlated with higher levels of education and higher social class).
  • Lawes (2009) found that ‘lifelong theists’ disproportionately come from unskilled and semi-skilled manual backgrounds, and were less likely to have academic qualifications. Conversely, lifelong atheists disproportionately come from higher professional and managerial backgrounds, and are more likely to have experienced higher education.

NB – It’s worth noting how this contradicts what’s above in terms of church attendance

Social class, religion and deprivation 

There is some evidence that those suffering deprivation (the lower social classes) are more likely to turn to religion…..

  • Churches in deprived inner city areas tend to have higher rates of attendance.
  • Methodist, Pentacostal and Baptist denominations  tend to be more working class.
  • Catholic Churches are more likely to attract Irish, Polish and African immigrants who have typically experienced higher levels of deprivation.

New Religious Movements and social class

As a general rule, the middle classes are more attracted to both World Affirming NRMs (and the New Age Movement), and World Rejecting NRMs, at least according to Eileen Barker’s classic study of ‘The Moonies’.

Problems with identifying the relationship between religion and social class

  1. Andrew Mckinnon notes that there has been a ‘dearth’ of research on the relationship between religion and social class, meaning there is something of a data gap.
  2. Because of the above, we are often stuck with relying on indicators which might not actually measure social class.
  3. Even if the data suggests that church attendance and belief are higher among the middle classes, this doesn’t necessarily mean the middle classes are actually more religious. They may just be attending church to keep up appearances or to get their children into the local church school (which tend to have high academic performance); or they  may feel under more social pressure to state they are religious than the working classes

Sources: 

Chapman et al, as well as the good ole’ t’internet.

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Bake Off 2018 certainly packs a strong middle class punch…

While there’s a lovely ethnic and gender diversity shine on this year’s Great British Bake Off pie, the social class balance is just way off!

I’ve done a rough analysis of this year’s 2018 Bake Off contestants by social class background and compared these to the percentages of people working in different social class occupations (1) and found the following differences:

It’s all about class 2 in this year’s 2018 Bake Off!

There’s a very strong upper middle class skew, and a corresponding under-representation of especially the traditional working class.

The 2018 Bake Off contestants by social class…

Focusing purely on social class, and categorized using the National Statistics Socio-economic classification (NS-SEC), in this year’s 2018 Bake Off line up we have the following:

Class 1 – Managers, directors, senior officials – COUNT 3

  1. Antony the ‘Bollywood’ Banker,
  2. Briony the stay at home mum
  3. Dan the stay at home dad.
Antony: representing all actually working higher professionals

My logic for including the two stay at home parents in class one is as follows: only the very wealthiest of parents can afford to have one of them staying at home permanently, and given that class 2 (see below) is already well over-represented it follows that the most likely class fit for these two is in class one. NB – this isn’t necessarily the case, just my best estimate in the absence of any data on what Briony’s and Dan’s partners do. 

Class 2 – Professional occupations – COUNT 6

  1. Imelda, the Former teacher, now countryside recreation officer
  2. Kim-Joy, the Mental health worker
  3. Luke, the Civil Servant
  4. Manon, the Software Project Manager
  5. Rahul, the Nuclear scientist
  6. Ruby, the Project Manager
Kim-Joy: a good candidates this years social class Bake Off ‘median’

Classes 3-5 – count 0

Associate professional, technical profession (class 3),  administrative and secretarial (class 4) and skilled trades (class 5) have zero representation on Bake Off this year.

Class 6: caring and leisure – COUNT 1

Representing the 3 million workers in class 6…. retired air steward Terry

Class 7 – sales and customer service – COUNT 1

Karen represents the 2.5 million working people in class 7…. at least she is actually ‘working’.

Class 8 – Plant and machine operatives – COUNT 0

No representation from the ‘traditional’ working class at all. I guess custard creams are off this year’s Bake Off menu!

Class 9 – elementary occupations – COUNT 1

Finally…. Blood courier Jon represents those working in class nine.

Jon also represents all of Wales too. Quite a burden!

A few observations on the problems of social class analysis…

I had to limit myself to categorizing the contests by occupation, as this is the only valid, ‘objective’ data I’ve got about their class background. I would have like to have used the more up to date ‘New British Class Survey‘ (scroll down for details), but I can’t tell how much cultural capital etc. each contestant has got just from watching them of the T.V.

I might have mis-categorized a couple of the contestants: especially the two who don’t work, but even so, there’s still a middle class bias!

Discussion Questions….

Does this poor representation of the lower social classes matter? I mean, we all know that ‘trophy baking’ is a middle class affair, so maybe this sample of bakers actually does represent those who ‘trophy bake’ – i.e. those who can actually afford to spend that much time and money on baking?

Or should Channel 4 be trying a bit harder to find a machine operator to get their ass on Bake-Off?

Sources/ Find out More…

  1. U.K. population social class breakdown based on Office for National Statistics: Employment by Occupation, April 2017 figures.
  2. The Great British Bake Off web site (source for contestant images).

 

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Nevis: A Tax Haven Preventing Positive Globalization?

The Island of Nevis is the most secretive tax haven in the world. Nevis is a solitary volcano in the Caribbean, with a population of just 11, 000, notorious for its involvement in Britain’s biggest ever tax fraud, as well as having been implicated in many other sordid financial scams of modern times, such as when 620, 000 Americans were fleeced out of $220 million in a pay-day loan scam.

tax-haven-map.jpg

Despite its tiny population, Nevis is also home to six domestic banks, one international bank, 18 insurance managers, and dozens of registered law firms. In fact Nevis might well have the highest lawyer to person* ratio on earth.

Nevis is becoming increasingly popular with the world’s rich: since 2012 its financial services sector has grown by a quarter.

Nevis specializes in letting its clients create and register corporations with greater anonymity than almost any other place on planet earth:  even the island’s own corporate land registry doesn’t know who owns the corporations registered there.

Companies benefit from further protections: if you suspect a company of having acquired some of its assets illegally, you have to file $100 000 bond with the courts in Nevis before initiating legal proceedings, in order to make sure that no-one makes frivolous claims.

Not that you would have much luck filing a claim against a company registered on the island: Nevis’ regulator holds no information on who owns the companies registered there, or on who owns its companies’ assets.

Then there’s the fact that anyone disclosing financial information without a court order is liable for a $10 000 fine and up to a year in prison. This would serve to put of investigative journalists.

All of this poses a problem for authorities wishing to tackle global crime: if Nevis continues to guarantee anonymity over ownership of assets then there is no way for global crime fighting agencies to trace whether or not those assets have been acquired illegally.

A further problem is that it makes it more difficult for nation states to track down whether large corporations or individuals are dodging their taxes.

Relevance of this case study to A-level sociology 

The existence of tax havens demonstrates the absence of global social norms pertaining to tax, and to the relative powerlessness of Nation States to control flows of global capital.

It also suggests support for the Marxist/ World Systems Theory view of globalization. The existence of Tax Havens allows the richest to keep their wealth, perpetuating global inequality. They certainly don’t benefit the global poor!

*some research suggests that ‘lawyer’ and ‘person’ are mutually exclusive categories. Although there’s no actual evidence to back this up.

Sources: The Week July 2018.

This post will also be published to the steem blockchain. 

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400, 000 children in the UK do not have their own bed

400, 000 children live in such extreme poverty that their parents are unable to afford to buy them their own bed. The 400, 000 figure is an estimate made by the charity Buttle UK. 

The charity calculated the estimated figure of 400, 000 based on a sample of the 10 000 families it helped last year. Among those 10 000 families, 25% of children did not have a proper bed of their own to sleep in.

Estimation errors aside for the moment (see below on this), I was altered to this shocking indicator of child poverty by a short item on Radio Kent, and although it has filtered through to mainstream news, it doesn’t seem to be particularly high up the agenda.

The impacts of ‘bed poverty’ 

As Buttle UK points out… one of the main problems with bed poverty is that it has a negative impact on children’s physical and mental health. If they are failing to get a decent night’s sleep, then they are less likely to be able to concentrate in school.

Then there is the rather grim fact that mattresses or pillows used as a bed, which are stored on the floor, are more likely to be infested with bugs that a mattress on a ‘normal’ raised bed. This means poor children are more likely to be infested with bugs than children with proper beds.

What are the causes of bed poverty?

Well, I guess this is down to the existence of poverty in general in the UK. A bed is one of those relatively large expenditure items that you can live without if necessary, so if you’re one of the nearly 30% of children living in absolute poverty (after housing costs) I guess it makes sense for your parents to prioritize food and heating before a bed.

The ideological choice to cut welfare payments which are part of ongoing Tory policy also obviously help to exacerbate the number of children in poverty in general and in ‘bed poverty’ in particular.

NB – Be cautious about these stats

Although I accept the fact that tens, maybe hundreds of thousands of of children live in ‘bed poverty’, I’m not convinced that the figure is as high as 400, 000. My reasoning is that the charity probably works with the very poorest, and I think that figure possibly uses ‘softer measurements’ of poverty to beef up their claim. (NB this is only a possibility, they don’t actually say in the article which measure of poverty they use to derived the 400, 000 figure!)

Relevance to the A-level sociology syllabus 

This is yet another indicator of child poverty, and also probably a new concept (‘bed poverty’) for most students. It’s also a good example of ‘hidden poverty’ – this is a good example of an aspect of poverty that most of us wouldn’t even notice, even though the consequences are severe.

It has obvious relevance to the sociology of education: as explained above, those missing out on a decent night’s sleep will not be able to learn effectively. It’s a classic example of how material deprivation can affect class differences in education.

Finally, although I haven’t discussed it any depth here, this is also a good reminder of the need to be skeptical about the use of statistics – there are different measurements of poverty (relative and absolute), and I’m not actually convinced that the 400, 000 figure is valid. This is a good example of a statistic that is socially constructed and a campaign that possible lacks objectivity, so this can even be tied in to debates surrounding value freedom!

Image sources 

Dirty Mattress

Full Fact – poverty graph

This post will also be published to the steem blockchain!

 

 

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On Sir David Attenborough and Boaty McBoatface: Reinforcing the Social Class Order?

I can’t help but analyse the launching of the Sir David Attenborough polar ship through a social class lens. The whole affair just seems so terribly middle class: possibly even a ritualistic reinforcing of the social class order and a kick in the teeth for the good ole’ working class, as well as for anyone with a sense of humour.

Sir David Attenborough.jpg

My reasoning is as follows:

  1. 124 000 people (most of whom are likely to be working class, because most people are working class) voted to call the ship ‘Boaty Mcboatface‘, however, this democratic decision was overuled by ministers (who are mainly drawn from the upper middle classes) who instead decided that a more appropriate name for a Polar research vessel would be the name ‘Sir David Attenborough’.
  2. I know he’s a national treasure, but he’s a very upper middle class treasure: Sir David Attenborough attended a Grammar School in the early 1940s, before the Tripartite System. As far as I’m aware this basically meant his parents must have paid for him to go there, as at that there were no such thing as as state-funded grammar schools. So a bunch of middle class people decided to over-rule the working class majority’s naming decision and name the boat after a thoroughly middle class person.
  3. I guess all of the above is not surprising: given that this is a polar research ship that’s likely to be chock-full of postgraduate level scientists, most of whom will  no doubt come from Russel Group Universities which are, again, chock full of the middle classes (80% are from the middle classes). Add in the weight of cultural and social capital that will bias the selection to a prestige research vessel, and I’d be amazed if more than 5% of the research-crew would be from working class backgrounds.
  4. There is still a ‘Boaty McBoatface’ – but it’s a robotic submarine which can be programmed to go off and do its own research, later returning to the main boat. Just pause to think about the class-related imagery here: the larger ‘mother’ ship has a middle class name, the visible, the regal, the symbol which is to be revered; while the vessel with the name the majority voted for is a satellite, submerged, invisible, on ‘auto-pilot’, servicing the main ‘good ship middle class’.

Boaty.jpg

Or maybe I’m reading too much into this?

This blog post will also appear on the steem blockchain… check out steemit for more details… a site where you can earn cryptocurrency for posting stuff online!

 

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Does Britain have a ‘class ceiling’?

A recent survey of 2000 people has revealed that half of working class people still believed they encountered a “class ceiling” when trying to progress up the career ladder.

The survey was commissioned by conservative MP Justine Greening and conducted across a range of industries and regions. the Putney MP said:

“There is still a class ceiling and it’s clear from our grassroots research that people see it and experience it every day.”

Some of the key findings of the research include:

  • 50% believe those without strong regional accents found it easier to progress in their workplace.
  • 25% said having a regional accent had held them back at work; this figure rose to almost half in London.
  • Only a third of people said their boss was from a working class background.
  • working class representation in leadership roles are as low as 17%.

Justine Greening seems like an interesting character: A conservative MP, previously the Minister for Education and the only person to have ever held the position from a comprehensive school background.

Greening has set up the Social Mobility Pledge to encourage employers to adopt open recruitment policies such as name-blind or “contextual” recruitment, and offering apprenticeships to people from disadvantaged backgrounds.

She believes that “Levelling up Britain in this way means talent is what determines how far you go, not simply where you started.

Related Video:

 

Sources used to write this post/ find out more…

  • The Social Mobility Pledge
  • Guardian Article– irritating article about the ‘study’ which fails to provide links to the study.
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Who is Poor in the UK?

In brief, 22% of the UK population, or 13.9 million people live in poverty in the UK (2016). Poverty rates are higher for lone parent households (46%), disabled households (34), and rates also vary significantly by ethnicity (e.g. the Bangladeshi poverty rate = 50%).

Below is a summary of the latest statistics on the characteristics of those living in poverty in the UK. NB These are the latest stats I could find which have been comprehensively analysed by the Joseph Rowntree Foundation, based on their 2017: Poverty in the UK report. 

Poverty 2018.png

If you can’t see the above chart online (it’s designed to be downloaded and printed off in A3) the it’s all replicated below!

Basic Poverty in the UK Statistics 

A total of 13.9 million people lived in poverty in the UK in 2015-16, or 22% of people live below the poverty line, 30% children, and 18% of pensioners. However, there is significant variation between the proportion of working age adults, pensioners and children living in poverty.

Poverty statistics UK

What is Poverty?

Relative poverty: the stats in the JRF report summarised here mainly show  ‘relative poverty’: when a family has an income of less than 60% of median income for their family type, after housing costs.

A related measure is persistent poverty which is when a person is currently in poverty and has been in poverty for at least two of the three preceding years.

For more details for different ways of defining and measuring poverty please see this post: What is poverty?

Poverty rates by household type

46% of lone parent households are in poverty, twice as many as all other household types.

Household Poverty

Poverty Lines

The ‘poverty line’ varies by household type:

Family type £ per week, equivalised,

2015/16 prices

  • Couple with no children     = £248
  • Single with no children       = £144
  • Couple with two children*  = £401
  • Single with two children*   = £297

*aged 5 to 14

Poverty varies most significantly by disability 

In 2016 34% of working-age adults in families with disabled members lived in poverty, compared with 17% of those who did not.

Disable Poverty

Poverty also varies by ethnicity 

Approx. 2016 rates for working age adults Bangladeshi – 50%, Pakistani – 45%, Black British 37%, White – 19%.

Poverty ethnicity

Find out more…

There are other variations in poverty highlighted by the JRF report (link above), I’ve just selected the main ‘in focus’ trends as things stand in 2017.

NB on the ‘data lag’ – that’s just one of the problems of Official Statistics more generally – most of the data above has been analysed from various different types of government stats, which are already a year out of data before the ONS publishes them, then you have wait further for the JRF summary. If you want the 2018 stats, you’ll just have to wait til 2019!

If you like this sort of thing, then you might also like my previous post on ‘Poverty Trends’ in the UK, which looks at how poverty rates changed between 1996 and 2016.

 

 

 

 

 

 

 

 

 

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UK Poverty Trends 1996 – 2017

The UK has seen significant falls in poverty over the last 20 years, HOWEVER, this progress is now at risk of reversing as poverty rates have been increasing in recent years. This blog posts summarizes the 20 year trend in UK Poverty according to the Joseph Rowntree Foundation’s 2017 Poverty Report. Specifically it looks at:

  • The overall 20 year trend in UK poverty
  • poverty among pensioners and children
  • Three drivers of the reduction in poverty rates
  • Three threats to the continued reduction in poverty rates

NB I’m using the same information from the report, but I’ve changed the order in which it’s reported and summarized it down further. Personally I think my version is much more immediately accessible to your ‘non-expert’: IMO the ‘JRF have a tendency to ‘over-report’ reams of nuanced data, and the overall picture just gets lost. The detail’s important if you’re a policy wonk, but probably going to get lost on the average, interested member of the general public.

Before reading this post you might like to check out my ‘what is poverty?‘ post which covers the basic definition of some of the terms used below. 

The overall 20 year trend in UK poverty….the fall and rise of UK poverty rates

20 years ago, in 1996, nearly a quarter (24%) of the UK’s population lived in poverty. By 2004, this had fallen to one in five (20%) of the population. However, by 2016, the proportion had risen slightly to 22%.

Relative Poverty Rates UK 1996 to 2016.png

*Relative poverty is when a family has an income of less than 60% of median income for their family type, after housing costs.

Children and pensioners living in poverty 

As the chart above clearly shows, the biggest success stories in the long term reduction in poverty over the last 20 years are the numbers of pensioners who have been taken out of poverty and (to a lesser extent) the number of children.. As the chart above shows:

  • In 1995, 28% of pensioners lived in poverty, falling to 13% in 2012, but rising to 16% by 2016.
  • In 1995, a third of children lived in poverty, falling to 27% in 2012, but rising to 30% in 2016
  • However, during that time the proportion of working age couples without children in poverty actually grew slightly, from 16% to 18%.

Factors correlated with falling poverty rates

The report notes three main factors which are mainly responsible for this long term overall decline in poverty:

  1. Rising employment, linked with higher wages due to the minimum wage, and better education.
  2. Increased support through benefits, especially the increase in the state pension age, but also out of work benefits for working age people with children
  3. Housing benefit and increased home ownership containing the impact of rising rents.

Factors explaining the long term decrease of UK Poverty in more depth 

It seems that the main drivers behind the long-term decrease in poverty in the UK are the ‘positive’ economic factors such as improvements in the employment rate, pay and conditions, rather than increases to benefits. 

Below I select what appear to be the five most import factors from the report which explain the long term decrease in poverty. 

The increase in the state pension 

The most significant reduction in poverty has been achieved with pensioners, and according to the JRF report, the main reason for this was a one off increase in the state pension at the beginning of the century:

trend pensioner poverty UK 2018.png

NB – there is a lot of variation in pensioner income, which I may explore in a future post…

 

The employment rate has increase from around 71% in 1996 to around 75% in 2016…

Employment rates UK 2017.png

NB – while you are statistically more likely to be in poverty if you’re not in-work, being employed it itself is not sufficient to avoid being in poverty. Both the introduction of the minimum wage, and changes to in work benefits for lone parents have been essential to making sure that a higher proportion of people in employment are also not officially in poverty. While work today is more likely to lift you out of poverty than in 1996, it remains the case that a large percentage of those in poverty are in-work (typically in part-time jobs). 

Earnings are up for people with all levels of qualifications…

Increase wages UK 2017

Obviously higher earnings are more likely to lift people out of poverty, HOWEVER, at the bottom end of the income earning scale, and especially for those with children and in part-time jobs, the increasing cost of living, especially rent (but also childcare and even food and utilities) has negated much of the above increase in wages, hence why government support in the form of child tax credits and housing benefit remains important.

The number of people with degrees has nearly trebled in this period: from around 12% of the UK population to over 30%

Increase degrees UK 2016

Those with degrees earn approximately twice the amount of those with no qualifications, so it would seem that New Labour’s focus on ‘education, education, education‘, and their push to get more people into higher education has had a positive impact in poverty reduction. However, with the introduction of tuition fees and with increasing competition for highly skilled jobs coming from abroad, it’s not clear that this trend (of more and more people getting degrees) is set to continue.

The introduction of the national minimum wage has resulted in a 46% relative pay increase for the poorest 10%, compared to a 40% median national increase

Increase earnings UK 2016

Both the introduction of the minimum wage and its subsequent increases seem to have been one of the most important factors in tackling in-work poverty. However, even with the minimum wage, a possible future barrier to further poverty reduction lies in the growth of precarious jobs leading to ‘underemployment’ – where people get too few hours to earn a decent living. For more on this, see my summary of the RSA’s report on ‘Future Work in the UK‘.

The increase in out of work benefits for people with children 

 

Out of work benefits.png

Basically, there has a been a very slight long-term increase in out of work benefits for people with children, who are now slightly better off than 20 years ago, while poor people without children have seen no change, or are slightly worse off.

I guess this leads to an overall reduction in the poverty rate simply because there are more people per family household rather than just couple or single person household.

You can see from the above chart, that lone parents claiming JSA and child benefits were briefly lifted to 60% of median income (just on the poverty line) – sufficient to take them out of poverty, however, you can also see that benefits are again being cut back, so we can probably expect poverty rates to increase again in the future!

And one factor which doesn’t seem to explain the overall reduction in poverty… changes to in-work benefits…

in work benefits.png

With the exception of single parents who are better off over a twenty year period, every other household type seems to be worse off! Thus I can’t see how this variable would explain the long term decrease in UK poverty.

Potential barriers to further reductions in poverty 

All three of the main drivers of poverty reduction mentioned above are now under question:

  1. The continued rise in employment is no longer reducing poverty.
  2. State support for low-income families is falling in real terms, and negates the gains made by increasing employment and wages.
  3. Rising rents, less help for low-income renters and falling home ownership leave more people struggling to meet the cost of housing.

Sources

The Joseph Rowntree Foundation: UK Poverty 2017