Tag: Poverty

What a waste: Holyrood spends £100 million to mitigate Tory welfare cuts

This year more than £100 million has been spent to mitigate the effects of UK Government austerity and this money could have been better spent on more anti-poverty measures, Social Security Secretary Shirley-Anne Somerville has said. Continue reading What a waste: Holyrood spends £100 million to mitigate Tory welfare cuts

Report calls for action to loosen the grip of poverty

People living on low incomes in Edinburgh have decried the city’s high living costs and called for increased action to loosen the grip of poverty in their lives, in a new report.

New research undertaken by the Poverty Alliance on behalf of the Edinburgh Poverty Commission has revealed the range of challenges faced by people struggling financially in Edinburgh, with high housing and living costs combining with low-paid work and benefit issues to lock them into poverty.

Many participants were struggling to afford day-to-day basics like food, transport and households bills due to a combination of low incomes and high living costs in the city. As a result, people are being forced to rely on foodbanks and on friends and family.

You can read the full report below.

The research revealed problems with the social rented housing system in Edinburgh, including a lack of adequate, available housing and long-term stays in inadequate temporary accommodation, which were having a significant impact on people’s lives.

Many participants felt displaced from Edinburgh city centre and had a perception that those with power valued tourism over the needs of local residents living on low incomes.

There were also major challenges faced by people seeking advice and support, with many either not knowing where to access this support or being faced with long waits for appointments at advice services.

Research participants shared their solutions to Edinburgh’s challenges. The need to recognise the higher cost of living in Edinburgh was the dominant theme, with solutions including greater action on housing (including more socially-rented properties and action to reduce private rents), more affordable transport, and more action to improve people’s awareness of their social security entitlements.

One Edinburgh resident who participated in the research said: “I’ve always believed that it’s very expensive to live and work in Edinburgh. Many people commute into Edinburgh because it’s cheaper to live outwith Edinburgh.

“But, you know, some of us ‘Edinburghers’ don’t want forced out of the city, we want to live in the city and I’ve always thought that Edinburgh should be treated a little bit like London is with a higher salary scale to incorporate the cost of living in the city centre.” 

Jim McCormick, Chair of the Edinburgh Poverty Commission, said: “It cannot be right that, on the eve of a new decade, one in five children in our wealthy capital city are living in poverty.

“This timely report shows the problem to be damaging, costly and spread across the city. Poverty can be solved if we involve people with first-hand experience. City-wide, further action to boost affordable housing and cut the cost of travel needs to be backed by employers offering a living wage and secure hours.

“Easy access to quality advice on money, debt, housing and care should be available to every neighbourhood. We can start to solve poverty by stopping the ‘pillar to post’ experience that too many citizens struggle with.”

Vice Chair of the Edinburgh Poverty Commission said: “At this time of year, more than ever, we need to consider those less fortunate than ourselves. Most of us will be downing tools and enjoying food, fun and games with family and friends but the stark reality is that there are too many people who still don’t have enough money to meet their basic needs over the festive season, let alone all the trimmings that come with it.

“The research published today is a startling reminder of this. The result of focus groups carried out with people who are actually experiencing poverty in Edinburgh today, it spells out their personal experiences, providing a valuable platform for setting policies and improving people’s lives in the future.”

Since the Edinburgh Poverty Commission was established in November 2018, three calls for evidence have received over 120 written responses, and forty face to face evidence sessions have been held.

Yesterday, as well as launching the new report, the Edinburgh Poverty Commission launched an online survey to find out what the people who live and work in Edinburgh think about solving poverty in their city.

The survey is open to everyone who works and lives in the city of Edinburgh, and aims to be the largest ever public consultation about poverty in the city.

The survey will remain open until Friday 11th January 2020 and can be accessed here: www.surveymonkey.co.uk/r/Edinburgh_Poverty_Barometer_2019.

Poverty-in-Edinburgh-EPC-Dec-2019

 

Righting the Wrongs: Poverty Alliance launches general election manifesto

Poverty campaigners have published their demands for the next UK Government, with calls for a range of policy commitments to help stem the rising tide of poverty.

In Righting the wrongs: A manifesto to tackle poverty, the Poverty Alliance urge the next UK Government to put solving poverty at the heart of all that it does, including by creating a more compassionate social security system, building a labour market that works for everyone, and protecting people on low incomes from the effects of Brexit. Continue reading Righting the Wrongs: Poverty Alliance launches general election manifesto

Child poverty in working households has increased by 800,000 under Tories, says TUC

  • Number of children living below the breadline – despite being in a working family – has increased by 38% since decade began 
  • London, East of England and West Midlands have suffered biggest increases 
  • Government policies have driven majority of rise, says TUC  

poverty family JRF

The number of children growing up in poverty in working households has risen by 800,000 since 2010, according to new TUC analysis published today. 

The analysis reveals that child poverty in working families rose to 2.9 million in 2018 – an increase of 38% since the start of the decade.

In 2010, 1 in 5 (19%) children in working households were growing up in poverty. In 2018 this had increased to 1 in 4 (24%).

The analysis shows that Westminster government policies account for the majority of the increase in-work poverty. More than 485,000 children (in working households) have been pushed below the breadline as a direct result of the government’s in-work benefit cuts. 

The TUC says that other key factors behind the rise in child poverty are: 

  • Weak wage growth
  • The spread of insecure work
  • Population growth
  • The rise in the number of working households hasn’t been enough to lift families out of poverty.

London has suffered the biggest increase in child poverty (+68%) among working families followed by the West Midlands (+56%) and East England (+56%).

In 2016 the Conservatives abolished the Child Poverty Act and scrapped targets to reduce poverty.

TUC General Secretary Frances O’Grady said: “No child in Britain should be growing up in poverty. But millions of parents are struggling to feed and clothe their kids. That is not right.

“The Conservatives’ cuts to in-work benefits have come at a terrible human cost. As too has their failure to tackle insecure work and get wages rising across the economy.

“We need a government that puts working families first, not wealthy donors and hedge funds.”

The TUC is calling on all political parties to: 

  • Raise the minimum wage to £10 an hour
  • Stop and scrap Universal Credit
  • Ban zero-hours contracts
  • Give workers new rights to join unions and bargain for better pay and conditions across industries

Increase in number of children living in poverty in working households since 2010 (nation/region) 

Region Number of children in poverty in 2010 Number of children in poverty in 2018 Extra children in poverty (000s) Extra children in poverty (%)
North East 71,362 108,775 37,413 52
North West 241,300 335,190 93,890 39
Yorkshire and Humberside 206,827 217,571 10,744 5
East Midlands 124,690 184,085 59,395 48
West Midlands 191,504 299,510 108,006 56
Eastern England 171,637 268,516 96,879 56
London 362,448 609,002 246,554 68
South East 248,435 340,996 92,561 37
South West 179,550 215,403 35,853 20
Wales 124,102 119,693 -4,409 -4
Scotland 112,075 121,925 9,850 9
Northern Ireland 53,404 59,690 6,286 12
UK total 2,087,334 2,880,356 793,022 38

Source: Landman Economics Analysis and modelling for the TUC 

Proportion of children in poverty in working households 

Region 2010 (%) 2018 (%)
North East 17.3 25.5
North West 20.2 25.3
Yorkshire and Humberside 22.7 22.0
East Midlands 15.5 21.1
West Midlands 19.9 27.9
Eastern England 15.8 22.7
London 25.9 33.9
South East 15.5 20.0
South West 19.7 21.4
Wales 24.6 22.0
Scotland 13.3 15.1
Northern Ireland 15.2 15.7
UK total 19.0 23.8

Source: TUC analysis of HBAI data 

Benefits take-up: Holyrood comes to Wester Hailes

Holyrood’s Social Security Committee visited Wester Hailes Education Centre yesterday as they continued their inquiry into benefit uptake. The Committee met with various organisations and individuals to try to uncover why a huge number of benefits remain unclaimed. Continue reading Benefits take-up: Holyrood comes to Wester Hailes

State of Hunger: new report reveals desperate struggle to survive

Commissioned by the Trussell Trust and conducted by Heriot-Watt University, State of Hunger 2019 is the most authoritative piece of independent research into hunger in the UK to date. It reveals the average weekly income of people at food banks is only £50 after paying rent, and almost one in five have no money coming in at all in the month before being referred for emergency food.

  • 94% of people at food banks are destitute
  • Almost three-quarters of people at food banks live in households affected by ill-health or disability
  • 22% of people at food banks are single parents – compared to 5% in the UK population
  • More than three-quarters of people referred to food banks were in arrears

The first annual report of a three-year long research project, it shows definitively for the first time the three drivers hitting people simultaneously and leaving no protection from hunger and poverty. These drivers are problems with the benefits system, ill health and challenging life experiences, and a lack of local support.

The most common source of income for people at food banks is the benefits system. Problems with benefits are widespread, affecting two-thirds of people at food banks in the last year. Key benefits problems highlighted by the research are: a reduction in the value of benefit payments, being turned down for disability benefits, being sanctioned, and delays in payments like the five week wait for Universal Credit.

Statistical modelling shows the positive impact an increase in the value of benefits could have, estimating that a £1 increase in the weekly value of main benefits could lead to 84 fewer food parcels a year in a typical local authority.

The majority of people referred to food banks also experienced a challenging life event, such as an eviction or household breakdown, in the year prior to using the food bank. Such events may increase living costs and make it harder to maintain paid work or to successfully claim benefits.

Particular groups of people are more likely to need a food bank. One risk factor is being a single mother – 22% of people at food banks are single parents, the majority of which are women.

Almost three-quarters of people at food banks have a health issue, or live with someone who does. More than half of people at food banks live in households affected by a mental health problem, with anxiety and depression the most common.

A quarter of people live in households where someone has a long-term physical condition; one in six has a physical disability; and one in 10 has a learning disability, or live with someone who does. Ill health often increases living costs and may be a barrier to doing paid work.

Amanda explained to researchers that £130 of her £138 fortnightly benefit payment for a health condition goes to paying arrears, leaving her with only £8:

“If I don’t pay my bills, then I’ll get the house taken off me. After paying arrears, I’ve got £8 a fortnight and that’s to pay for gas, electric, water. So it’s just impossible, it really is. I go to bed at night wishing I never wake up in the morning.”

The study also found that the vast majority of people at food banks have either exhausted support from family or friends, were socially isolated, or had family and friends who were not in a financial position to help.

Chief Executive Emma Revie said: “People are being locked into extreme poverty and pushed to the doors of food banks. Hunger in the UK isn’t about food – it’s about people not having enough money. People are trying to get by on £50 a week and that’s just not enough for the essentials, let alone a decent standard of living.

“Any of us could be hit by a health issue or job loss – the difference is what happens when that hits. We created a benefits system because we’re a country that believes in making sure financial support is there for each other if it’s needed. The question that naturally arises, then, is why the incomes of people at food banks are so low, despite being supported by that benefits system?

“Many of us are being left without enough money to cover the most basic costs. We cannot let this continue in our country. This can change – our benefits system could be the key to unlocking people from poverty if our government steps up and makes the changes needed. How we treat each other when life is hard speaks volumes about us as a nation. We can do better than this.”

The Trussell Trust is calling for three key changes as a priority to protect people from hunger:

  1. As an urgent priority, end the five week wait for Universal Credit
  2. Benefit payments must cover the true cost of living
  3. Funding for councils to provide local crisis support should be ring-fenced and increased

State-of-Hunger-Report-November2019-Digital

Scottish Welfare Fund has helped more than 347,000 ‘struggling’ Scottish households

poverty family JRF

Nearly £210 million has been paid to 347,045 low income households by the Scottish Welfare Fund since it was established in 2013, latest figures show.

Crisis grant applications to the fund for basic essentials such as food and heating increased by 12% from April to June compared to the same period last year.

In addition, for the first time exceptional pressure is the main reason for Community Care Grant applications. Previously, the biggest reason for these applications was helping people to stay in their community.

The fund, which enables local authorities to provide grants for people on low incomes, is part of the Scottish Government’s mitigation efforts for UK Government welfare cuts. Estimates suggest social security spending in Scotland is set to reduce by £3.7 billion per year by 2021.

Social Security Secretary Shirley-Anne Somerville said: “These are yet more signals of how much families are struggling.

“In the face of UK Government cuts and with the threat of a ‘no deal’ Brexit still alive – the risk is real that tens of thousands more people could be pushed into poverty in Scotland.

“The Scottish Government will not stand by and let people who are already struggling continue to face a reliance on food banks and the stress of debt and rent arrears.

“We will continue to spend at least £100 million each year to mitigate the worst effects of the UK government welfare cuts – part of the £1.4 billion we spent last year to support low income households.

“This is money we should be able to invest elsewhere to help pull people out of poverty but we instead we need to use to protect the poorest and most vulnerable in our country.

“And we are introducing the Scottish Child Payment to tackle child poverty head on. But there is no doubt that without the cuts inflicted on families by the UK Government this could go so much further.”