Recovery? What recovery?

Latest statistics show sharp rise in number of hard-pressed households receiving help

The experts tell us the recovery’s underway, but many ordinary Scots families are still feeling the economic pain – the number of households applying for welfare assistance has risen by a third in the last year, according to the latest statistics.

Scottish Welfare Fund Statistics to 30 September 2014 show that during the most recent quarter (July to September 2014):

52,400 applications were made to the Scottish Welfare Fund, an increase of 33 per cent on the same quarter last year;
25,800 Crisis Grants were awarded, 32 per cent more than the same quarter last year. These were predominantly for food, heating costs and other living expenses, with an average award value of just over £70;
11,200 Community Care Grants were awarded, 51 per cent more than the same quarter last year. These were predominantly for home furnishings and white goods, with an average value of just under £600.

Cabinet Secretary for Social Justice Alex Neil said: “That anyone should be live in poverty in a wealthy country is completely unacceptable and we’ll continue to tackle poverty and inequality to create a more prosperous and fairer society.

“Scottish Welfare Fund grants are a lifeline for people in crisis to buy the everyday items, or cover basic living costs that so many of us take for granted. This is why we are taking steps to establish the Fund in law through the Welfare Funds (Scotland) Bill.

“120,000 households in Scotland, one in twenty, have now been helped by the Scottish Welfare Fund in its first 18 months of operation. The increase in applications over the last year is due, in part, to work done by local authorities and advice services to raise awareness of the Fund.

“We have allocated £33 million a year to the Scottish Welfare Fund to make sure that we continue to reach out to households in the most deprived areas – around half of awards are made to applicants in the 20 per cent most deprived areas of Scotland. Many families are paying a heavy price for the UK Government’s welfare reforms and this investment will help to mitigate the effects of these cuts on some of our most vulnerable households.”

Governments ‘must do more’ to address poverty’

Largest UK poverty study calls on governments to tackle rising deprivation

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. This is one of the stark findings from the largest study of poverty and deprivation ever conducted in the UK.

Other key figures reveal that almost 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.

The Poverty and Social Exclusion in the United Kingdom (PSE) project, led by the University of Bristol and funded by the Economic and Social Research Council [ESRC], has shown that full-time work is not always sufficient to escape from poverty and calls on the Scottish and UK governments to take action.

The report’s findings will be discussed at a conference in Edinburgh.

Researchers from the University of Bristol, Heriot-Watt University, the Open University, Queen’s University Belfast, University of Glasgow, University of Oxford, University of Birmingham, University of York, the National Centre for Social Research and Northern Ireland Statistics and Research Agency found that:
• About 5.5 million adults go without essential clothing.
• Around 2.5 million children live in homes that are damp.
• Around 1.5 million children live in households that cannot afford to heat their home.
• One in four adults have incomes below what they consider is needed to avoid poverty.
• One in every six (17 per cent) adults in paid work are poor.
• More than one in five adults have had to borrow in the last year to pay for day to day needs.

The PSE standard of living survey results show that more than 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.

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.

In 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.”

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.

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.”

Although more people today see a range of public services as ‘essential’ than in 1999, including libraries, sports centres, museums, galleries, dentists and opticians, the use of many services has declined since 1999 primarily due to reduced availability, cost or inadequacy.

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.”

The findings will be discussed at an Edinburgh conference which has been jointly organised by the PSE team and the Scottish government.

One million Scots are living in poverty

One million people in Scotland – one in five of our population – are living in poverty, according to latest statistics published today.

The report produced by National Statistics (attached below) covers the period 2012 – 13, and takes into account welfare reforms introduced in April 2012. The report defines relative poverty as having a household income of less than 60 per cent of the average, and this is calculated both before and after housing costs.

The largest rise in poverty was for families with children, showing:

• 19 per cent of children were living in relative poverty in 2012/13.
• This amounts to 180,000 children in poverty, 220,000 after housing costs are taken into account.
• Both have increased by 30,000 since 2011/12.

The increase in child poverty in the latest year is driven by a fall in incomes for working households with children. The reduced entitlement to tax credits has contributed to a fall in household incomes for those with lower earnings. At April 2013, there was a 26 per cent decrease in the number of households with children in receipt of in-work tax credits, compared with April 2012.

The report also shows that:

• Scotland’s poorest households have seen the largest decrease in income – with a reduction of eight per cent in 2012/13 – the equivalent of £20 a week.
• In-work poverty in Scotland increased in 2012/13. Now six in ten children living in poverty are from households where at least one adult is in employment.
• In total across 2012/13, 820,000 people were living in poverty, 110,000 more than in 2011/12.
• This rises to one million people in poverty in Scotland when housing costs are taken into account.

Deputy First Minister Nicola Sturgeon said: “Scotland is one of the richest counties in the world and there is no reason for children to be living in poverty in our society.

“The fact is that the reduction in poverty seen in recent years is now being reversed. Westminster welfare reforms, such as the reduction in in-work tax credits, are reducing incomes for some of our poorest households.

“The Scottish Government has focused on doing everything we can to mitigate the harmful effects of Westminster welfare cuts – and we will continue to do so – but the impact is still being felt by the most vulnerable in our society. What is even more worrying is that 70 per cent of the welfare cuts are still to come – Scotland will see its welfare budget reduced by over £6 billion by 2015/16.

“And some estimates suggest that up to 100,000 more children could be living in poverty by 2020 if we continue with Westminster policies. In other words, the unacceptable increase in the number of children living in poverty revealed by today’s statistics could be just the tip of the iceberg.

“These figures show incomes are falling for families in Scotland. Our ‘social contract’ policies and our efforts to mitigate the impact of welfare cuts are designed to help, but we need the powers to do more. In an independent Scotland we would have the powers to provide one of the most comprehensive child care packages in Europe which would allow more parents to work.

“We would also be able to set up a commission to consider a new ‘Scottish Minimum Wage’ – which would at least rise in line with inflation – and ensure that benefits, allowances and tax credits keep rise with the cost of living.

“Today’s figures demonstrate just how vital the full powers of independence now are, to enable us to create a different approach – one that supports our most vulnerable, encourages people into the workplace and provides a fair day’s pay for a fair day’s work.”

NS Poverty and income inequality