Today’s official annual poverty figures show that 600,000 more people, half of them children, are living in absolute poverty – the government’s preferred measure of poverty
Today’s official annual poverty figures show that:
600,000 more people, half of them children, are living in absolute poverty, the government’s preferred measure of poverty
This is the second year in a row absolute poverty has increased
In comparison to 2020/21, 900,000 more people are living in absolute poverty, 400,000 of them children
This the joint highest increase in this statistic for 40 years (since 1982) and is the same increase as was seen following the Global Financial Crisis (between 2010/11 and 2011/12)
100,000 more children are living in relative poverty since 2021/22, a slight increase. The overall figure has slightly decreased by 100,000. In comparison to 2020/21, 900,000 more people, 400,000 of them children, are living in relative poverty
Food insecurity has risen dramatically, increasing from 4.7 million people (7%) in 2021/22 to 7.2 million (11%) in 2022/23
Peter Matejic, Chief Analyst at the Joseph Rowntree Foundation, said: “The annual poverty figures published today confirm that the Government failed to protect the most vulnerable from the cost of living crisis. Absolute poverty, the Government’s preferred measure of poverty, has risen for the second year in a row. This is as big as we have seen for 40 years.
“At the same time, there is little to celebrate in the slight fall in overall relative poverty levels. This is largely due to the incomes of middle-income households falling, rather than people on the lowest incomes being better off. This is also likely to reverse now that earnings are growing faster than inflation.
“The Government’s short-term interventions to date haven’t stopped the incomes of poorer households from being swallowed up by the soaring cost of essentials. This is despite Jeremy Hunt speaking of his commitment to protect the most vulnerable in his Autumn Statement in 2022. These results show just how far away our social security system is from adequately supporting people who have fallen on hard times.
“The prospects for people on the lowest incomes should be at the forefront of politicians’ minds as we head into a general election. We need all political parties to treat this rise in poverty with the seriousness it deserves at the coming general election and set out an ambitious plan to reverse it.
“This must involve embedding an Essentials Guarantee into Universal Credit to ensure that everyone has a protected minimum amount of support to afford essentials.”
Save the date! Friday 22nd March 2024, Norton Park Conference Centre
We are pleased to announce that our new Cash First Toolkit – designed to support Community Food staff and volunteers with knowledge, skills and confidence around Cash First – has been published!
Charity warns rising rents and pensioner poverty could be ‘catastrophic’ for older Scottish renters
1 in 7 pensioners in Scotland (150,000) are in poverty, and over half (75,448) of those are renters
New research finds that just 30% of older renters feel fully informed of their housing rights
Older private renters in Scotland are plagued with damp, unsafe and unaffordable homes
Charity calls for the Scottish Government to ensure affordable rents, that tenants’ rights are upheld and rented homes are maintained to a decent living standard
Older Scottish renters living on a low income urgently need greater protections in the upcoming Housing Bill, says Independent Age, the charity supporting older people in poverty.
It says that renters in later life face a “catastrophe” if action is not taken, with record rent increases in recent years and a growing number of older renters across the nation being pushed into poverty.
The organisation today launches its report Homing in: How to improve the lives of older Scottish renters, which uses polling, Government data and a survey of over 500 older renters to understand the reality of renting in later life in Scotland.
Almost two in five (39%) older Scottish private renters now live in poverty, up from 24% a decade before1. Independent Age says that older renters on a low income are “terrified” their rent could rise after the end of the current rent rise cap on March 31st.
The new report has unearthed older tenants’ daily challenges with affordability, the threat of eviction and poor standards. The charity found that less than a third of older renters (30%) feel fully informed of their housing rights while a shocking one in five (21%) saying they know nothing2.Independent Age believes that this worryingly low level of awareness among tenants of their rights in the private rental sector is leaving poor and sometimes unlawful practice unchallenged.
The charity calls on the Scottish Government to ensure:
Private rents are controlled at an affordable level for older people on a low income.
Landlords are required to inform tenants of independent housing advice services when they serve them notice.
A housing ombudsman is established, giving private tenants the ability to challenge issues like poor maintenance.
Tenants are informed of their rights as renters.
Affordability
In Scotland, almost two in five (39%) older private renters live in poverty3, while more than a quarter (28%) of those surveyed say they have less than £200 disposable income a month after paying rent. In the last year, over 4 in 5 (81%) say they have faced a rise in rent of up to £50 a month.
With the temporary limit to rent increases set to end next month, the charity has heard from older people who, faced with increasing costs from all angles, including rent, Council Tax and energy, are struggling to pay their rent.
An older person who is looking for a new property to rent told the charity: “it is really scary how much starting rents have increased in the last six months”.
Independent Age warned that without action to ensure housing affordability in the private rented sector, more older tenants across Scotland will be forced to make difficult decisions such as making further cutbacks to food, energy and water to cover rent.
Housing quality and standards
65% of older Scottish peoples’ homes are in a state of disrepair4. Independent Age’s survey found that 40% of older private renters were not satisfied with the standard or quality of their home5, however polling found that more than 1 in 10 (12%) older private renters questioned feel uncomfortable raising concerns with their landlord, for fear of negative treatment.
Independent Age says that problems with damp, heating and energy efficiency come up frequently for older renters. One older person said that their house was “never warm… there is a smell of damp in the winter months. There is a huge opening in the back wall where the boiler is located. The wind whistles into the flat.” Another said that their home was cold “even in the summer.”
The charity said that not only are some of the conditions described by interviewees likely in violation of the Repair Standard that sets out a minimum standard that rental properties must meet, but tenants are scared to ask for necessary and reasonable repairs in case they are served with a ‘revenge eviction’. One man said: “I know if I complain to my landlord, it will get me nowhere but homeless.”
Evictions and homelessness
The report reveals that almost one in six (17%) older private renters are worried that their landlord will evict them in the next 12 months.
Almost three in five (59%) say that searching for a new home would be difficult6, likely due to older people sometimes needing special adaptations, such as a ground floor flat, and the growing unaffordability of rents.
Terrifyingly, there has been a 23% rise in the number of older people experiencing homelessness in the last year, up from 891 people in 2021/22 to 1100 in 2022/23.
Joanna Elson CBE, Chief Executive of Independent Agesaid: “For all of us, an affordable, safe and secure home is essential for our wellbeing and should be the norm. That’s why it is a catastrophe that, for many Scottish older renters on a low income, this is far from the reality.
“The Scottish Government made positive moves in recent years to protect tenants. But with many of these protections from eviction and rent increases coming to an end soon, we’ve spoken to many people renting in later life who are absolutely terrified about what will happen over the coming months.
“The Housing Bill is a once in a generation opportunity for the Scottish Government to make sure everyone has a home that is affordable, kept to a decent standard and free from the threat of eviction and homelessness.
“We hope they take action to ensure that all Scottish renters can live with dignity, no matter their age.”
Recommendations
Independent Age is calling for the Scottish Government to:
Establish a housing ombudsman to give tenants the power to challenge their landlords on poor maintenance and ensure that housing advice and advocacy services are accessible and properly funded so renters are aware of their rights.
Introduce a permanent system of rent controls so homes are affordable for older people on a low income, commit to building more social housing and increase access to, and funding of, Discretionary Housing Payments that support those on Housing Benefit who have a rent shortfall.
Ensure tenants, including those in later life on a low income, are informed of their rights.
Enshrine the right to adequate housing in Scots Law
Place a duty on local authorities to help someone threatened with homelessness in the next six months and require landlords to inform tenants of independent advice services before or when they serve them an eviction notice.
Independent Age is also calling on the UK Government to commit to uprating Local Housing Allowance every year so that Housing Benefit matches rises in local rents.
An initiative which will support low income families to take part in community action and advise on improvements in local services is being funded as part of a wider programme to help develop new approaches to child poverty.
The project, led by Midlothian Sure Start in partnership with Midlothian Council, is one of nine successful applicants to the Child Poverty Practice Accelerator Fund – which was set up to explore promising approaches or redesign services to maximise their impact on child poverty.
A Cash First Fund, which aims to reduce the need for emergency food parcels and food banks, will also fund eight partnerships to provide help to low income families. Six of these will provide new sources of cash-first support.
This morning Social Justice Secretary @S_A_Somerville announced two new funds to deliver cash first support for people in need, and develop new approaches to tackling child poverty.
Social Justice Secretary Shirley-Anne Somerville said yesterday: “These two funds exemplify the innovative approach the Scottish Government is taking to tackling poverty and delivering for the people of Scotland.
“The Midlothian partnership will give local families the opportunity to get involved in and influence local services. It will aim to identify improvements which will ensure help on offer is joined-up and people are supported in a dignified way to reduce stigma.
“Other projects will help to accelerate progress in tackling poverty, including by making it easier for people to access cash in a crisis and by connecting people with advice to prevent future hardship.
“We are investing £3 billion this financial year to tackle poverty and protect people from the cost of living crisis. We are taking all the action we can to support people within our limited powers and fixed budget.”
Cash First Fund: successful proposals
Area
Lead partner
Aberdeen
Aberdeen Voluntary Action (TSI)
Aberdeenshire
Aberdeenshire Council
Edinburgh
Edinburgh Health and Social Care Partnership
Fife
Fife Council
Glasgow
Glasgow Centre for Population Health
North Lanarkshire
North Lanarkshire Council
Orkney
Voluntary Action Orkney (TSI)
West Dunbartonshire
West Dunbartonshire Council
Child Poverty Practice Accelerator Fund: successful proposals
Area
Project
Aberdeen City
Data driven identification of households experiencing child poverty to inform and direct intervention and support.
Argyll and Bute
Evaluating the usefulness of third-party datasets for identifying communities in need of financial support.
Edinburgh
Income Maximisation Outreach
Inverclyde
Parent Centred Early and Intensive Intervention – supporting parents with children and babies under 5 years
Midlothian
Midlothian Peer Research – A Case for Change through a Place Based Approach Building Skills and Influencing
Moray
Improved identification of families affected by disability and delivery of support to maximise income
North Ayrshire
North Ayrshire Single Shared Assessment (NASSA)
Perth & Kinross
Beyond Emergency Support to Sustainable Livelihoods – Capacity Building Programme for Local Communities
South Lanarkshire
Paths out of Poverty’ – empowering parent/carers of disabled children through innovative, holistic, strengths-based approach.
Hardship deepens as millions find the poverty line further out of reach
New analysis in the Joseph Rowntree Foundation (JRF) flagship UK Poverty report quantifies for the first time how many thousands of pounds are needed by families to escape poverty – and how that has got worse over time.It is now20 years and 6 prime ministerssince there was a sustained fall in poverty.
New analysis in the Joseph Rowntree Foundation (JRF) flagship UK Poverty report quantifies for the first time how many thousands of pounds are needed by families to escape poverty – and how that has got worse over time. It is now 20 years and 6 prime ministers since there was a sustained fall in poverty.
How much you would need to move out of poverty
The poverty gap, or the amount of money needed to bring the incomes of people in poverty to the poverty line, has grown wider. Six million of the poorest people – those living in very deep poverty – would need on average to more than double their income to move out of poverty.
Analysis of the latest data shows that the average person in poverty has an income 29% below the poverty line, with the gap up from 23% in the mid-1990s. The average income of people in very deep poverty – is 59% below the poverty line.
This is equivalent to a couple with two children under 14:
in poverty needing an additional £6,200 per year to reach the poverty line. In the mid 90’s, the gap was £3,300 after adjusting for inflation.
in very deep poverty needing a whopping £12,800 more to reach the poverty line.
Poverty increased in the latest official data, returning close to pre-pandemic levels
Over one in five people in the UK (22%) were in poverty in 2021/22
This equates to 14.4 million people in total, with 8.1 million working-age adults, 4.2 million children and 2.1 million pensioners living in poverty
Nearly two-thirds (64%) of working-age adults in poverty live in working households. This has increased by 3 percentage points, from 61% to 64%, between 2020/21 and 2021/22
The number and proportion of children and pensioners in poverty rose between 2020/21 and 2021/22, as well as overall poverty
Around two in every ten adults are in poverty in the UK, with about three in every ten children being in poverty
Around 6 million people lived in very deep poverty in 2021/22
JRF analysis of broader trends since the 1970s shows that poverty rates grew rapidly under the Thatcher Government, reaching around a quarter in the mid to late 1990s, and have remained stubbornly high since then.
Poverty fell during the first half of the New Labour administration but started to rise after 2005. Overall, poverty has barely moved since Conservative-led Governments took power in 2010, with every year’s poverty rate since then being between 20% and 22%.
At the same time, the British public is more conscious of rising poverty levels in society. Since 2017, the majority agree that the government should increase tax and spending on health, education and other social benefits.
As we approach a general election, political parties must urgently address entrenched high levels of poverty by:
Introducing an ‘Essentials Guarantee’ into Universal Credit, to ensure that everyone has a protected minimum amount of support to afford essentials like food and household bills.
Beyond this, future governments must focus on expanding the foundations of economic security to everyone in our society. People experiencing poverty, especially deep poverty, will be looking for plans from parties to ensure that they are not left unprotected when times are hard.
Paul Kissack, Group Chief Executive of the Joseph Rowntree Foundation, says: “It has been almost twenty years and six Prime Ministers since the last prolonged period of falling poverty in the UK. Instead, over the last two decades, we have seen poverty deepen, with more and more families falling further and further below the poverty line.
“Little wonder that the visceral signs of hardship and destitution are all around us – from rocketing use of foodbanks to growing numbers of homeless families. This is social failure at scale. It is a story of both moral and fiscal irresponsibility – an affront to the dignity of those living in hardship, while driving up pressures on public services like the NHS.
“It’s a story which can – and must – change. Governments are not powerless to act, as we have seen throughout our history. One way politicians can take action in the next parliament is to enshrine in law a guarantee that people will always be able to afford the essentials, such as food and household bills, through our benefits system.
“2024 will be a year of choices, and any political party wishing to form a new Government must set out a practical and ambitious plan to turn back the tide on poverty in the UK. That plan – to ensure the dignity and respect of every member of our society – will be essential for achieving any broader ambitions for the country”.
Martin Lewis, Founder of MoneySavingExpert.com & The Money & Mental Health Policy Institute Charitysaid: “I warned at the start of the energy crisis that I was out of tools to help many on the lowest incomes. “
“Now we have hit the stark reality that 100,000s of people in the UK, even after they’ve had professional help from money charities, are still deficit budgeting – so their income is less than their minimum necessary expenditure.
“Definitions of poverty are tricky, especially when based on relative incomes, but that smells like a clear indication the problem is getting worse.
“And let’s be plain, once people are in the deepest mire, it’s not a Money Saving Expert you need, its policy makers and regulators to sit up take note and address these deep rooted problems – which is exactly what I hope they do with this Joseph Rowntree Foundation report highlighting the situation and calling for change.”
Number of people in poverty and poverty rates for different groups, UK, 2021/22
UK is only country in G7 where household budgets have not recovered to pre-pandemic levels
Families would be £750 a year better off if real disposable income had grown in line with other leading economies
Working people are being made poorer by Conservative failure, union body says
The UK is suffering the worst decline in living standards of any G7 country – according to new TUC analysis published this week.
The analysis shows the UK is only G7 economy where real household disposable income per head hasn’t recovered to its pre-pandemic levels:
Real household disposable incomes in the UK were 1.2% lower in the second quarter of 2023 than at the end of 2019.
But over the same period they grew by 3.5%, on average, across the G7.
The TUC estimates that if real disposable income in the UK had risen in line with the G7 average UK families would be £750 a year better off.
More pain ahead
The union body warned that the contraction in UK household budgets is going to get worse – despite falling inflation.
The Office for Budget Responsibility (OBR) forecasts that real house disposable income per head in Britain will fall by an additional 3.4% by the end of the first quarter of 2024.
And according to the same forecasts household budgets won’t even recover to their pre-pandemic levels until the end of 2026.
The OBR said in November that UK households are suffering the worst period for living standards since modern records began in the 1950s.
Households in debt
The TUC says the Conservatives’ failure to grow the economy and deliver healthy wage growth has pushed many households further into debt.
Analysis published by the union body at the end of December revealed that unsecured debt (credit cards, loans, hire purchase agreements) is set to rise by £1,400 per household, in real terms, this year.
The TUC says working people have been left brutally exposed to rising costs after years of pay stagnation.
UK workers are on course for two decades of lost living standards with real wages not forecast to recover to their 2008 level until 2028.
The TUC estimates that the average worker has lost £14,800 since 2008 as a result of their pay not keeping up with pre-global financial crisis real wage trends.
TUC General Secretary Paul Nowak said: “The UK is the only G7 nation where living standards are worse than before the pandemic.
“While families in other countries have seen their incomes recover – household budgets here continue to shrink.
“This is a damning indictment on the Conservatives’ economic record.
“Their failure to deliver decent growth and living standards over the last 13 years has left millions exposed to skyrocketing bills – and is pushing many deeper into debt.
“We can’t go on like this. Britain cannot afford the Tories for a day longer.”
Growth in real disposable household income in the G7
Country
change 2019Q4 to 2023Q2
United Kingdom
-1.2
Italy
0.1
Germany
0.2
Japan *
0.5
France
2.4
Canada
3.0
G7
3.5
United States
6.0
source: OECD; * Japan to 2022Q1
– The analysis is based on OECD figures for real household disposable income per head, which extend to 2023Q2 (except for Japan, which go to 2022Q1). Looking forward, UK figures are based on Office for Budget Responsibility projections in the November 2023 Economic and Fiscal Outlook. As with the ONS outturns and OBR projections, cash figures are in 2019 prices.
– The OBR measure living standards as real household disposable income (RDHI) per person.
‘A BUDGET OF MISSED OPPORTUNITIES ON TACKLING POVERTY AND LITTLE FOCUS ON PREVENTION’
COSLA has described the Scottish Government’s Draft Budget as a missed opportunity for the communities of Scotland in relation to tackling poverty.
COSLA also added that Scotland’s Council Leaders, Councillors, the Local Government Workforce and communities should be treated with the respect they deserve demonstrated through investment, not cuts.
COSLA said: “At a special meeting just before Christmas, there was dismay and frustration from Scotland’s Council Leaders about the way Local Government and the communities we represent had been treated in the Scottish Government’s Draft Budget. As the Budget currently stands, communities will see and feel a range of negative impacts.
“COSLA’s ‘Councils are Key’ budget lobbying campaign set out the case for fair funding that would allow Local Government to deliver for the people of Scotland, particularly around tackling poverty, one of the three shared priorities laid out in the Verity House Agreement.
“The response from the Scottish Government to our Budget ask is disappointing and will mean that the potential that councils have to prevent problems occurring will be limited severely.
“Specifically on poverty, the Budget should have had a focus on tackling the root causes of poverty, particularly its impacts on children. This would have needed a greater prioritisation of the work councils do in prevention and early support.
“The essential social supports councils provide in homes, schools, hubs and communities that aim to support and empower people will be further eroded – this has been the case for a number of years now, due to poor Local Government settlements that cut core funding.
“Services that support Local Government to Keep the Promise made to Scotland’s care experienced children and young people like family support and youth work, are under threat as a result of the proposed Scottish budget.
“Tackling poverty in Scotland will continue to be a significant challenge when councils do not have the resources they need to support communities.
“This year’s Budget presented the opportunity prioritise prevention and tackle inequity, to invest in communities and realise our ambitions to end poverty in Scotland.
“It did not deliver. Without a fair settlement for Councils, the poverty gap in Scotland will continue to grow. Investing in Local Government is key to a fairer Scotland.”
“The proposed Council Tax Freeze means that money which could have been invested in tackling poverty upstream – in families, communities and schools – is lost, missing a real opportunity to unlock Councils’ potential.
“COSLA’s President, Vice President and political Group Leaders from all parties have written to the Deputy First Minister and are seeking an urgent meeting.
“Council Leaders will not let this lie, they simply cannot afford to because it will have such a detrimental impact on the communities they represent.”
CONNECTED COMMUNITIES: AS EVER, WINNERS AND LOSERS IN FUNDING PROGRAMME
Tackling the impact of poverty on children, families and communities is at the heart of a £10m three year grants fund approved by the City of Edinburgh Council yesterday (Monday 18 December).
Organisations were invited to apply for a grant of £10k minimum and £100k maximum per year to one of three funding strands – Learning Outcomes, Health and Wellbeing and Youth Work.
Eligibility criteria for programme included that organisations are based in Edinburgh, hold charitable status, and have an annual income under £2 million. Both NHS Lothian and Police Scotland also contributed funding to the awards.
Eighty nine applications were assessed with total bids totalling £16.7m over three years for an available budget of £10m. This was carried out by trained assessors before going to a moderation panel consisting of the Edinburgh Voluntary Organisations Council (EVOC), Lothian Association of Youth Clubs (LAYC) and an independent chair.
Sixty eight organisations had their bids approved either in full or partially with the new grants programme running from 1 April 2024 through to 31 March 2027.
Councillor Joan Griffiths, Convener for the Education, Children and Families Committee, said: “The Connected Communities Edinburgh grants programme aims to support vulnerable and disadvantaged young people and their families right across Edinburgh.
“The three different funding strands mean we can direct resources to deliver outcomes that best support those most impacted by poverty.
“This new programme is a really good example of partnership working at its best. We listened to third sector and voluntary organisations about their first-hand knowledge of what the need was in our communities and where funding should be directed.
“Getting to today’s decision has involved a lengthy and really robust assessment process and I want to thank everyone who has contributed.
£We will of course continue to monitor the progress of the funding over the coming three years to ensure the outcomes promised for our communities are being delivered.”
Alleviating Poverty in Scotland requires investment in Local Government COSLA said today (Monday).
Commenting ahead of the Scottish Budget announcement tomorrow, Councillor Tony Buchanan, COSLA’s Children and Young People Spokesperson said: “If Scotland is to make progress towards alleviating and eradicating poverty, this year’s Scottish Budget must focus on tackling the root causes, with a greater prioritisation of local prevention and early-intervention work – and Councils are key to this.
“This means investment in the essential social supports provided everyday by Councils, in schools, in local community hubs, at the right place, at the right time.
“If the core services aimed at supporting and empowering people to reach their full potential are eroded, as they have been over the last few years as a result of cuts to our core Budgets, then tackling poverty in Scotland will continue to be a significant challenge.
“Action to address poverty and deprivation was noted as a key priority for Scotland in the concluding report on children’s services reform research published by CELCIS last week and reinforces the importance of the shared priority within the Verity House Agreement.
“For too long now, the financial settlement for Local Government has meant that Councils have had to cut spend to services which are needed to tackle poverty – whether they are youth work, social work support or breakfast clubs
This year’s Budget presents the opportunity to reverse this trend, to invest in communities and realise our ambitions to tackle poverty in Scotland.
“Without a fair settlement for Councils in tomorrow’s Budget, the poverty gap in Scotland will continue to grow.
“Investing in Local Government is key to a fairer Scotland.”
