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Literacy changes lives

Background information and measuring poverty

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Background

Measuring poverty Is the poverty gap decreasing?



Background

The picture between 1979 and 1998

A TES report on 31 January 1997, uses the European Community benchmark of poverty (in the absence of an official UK one). Relative poverty can then be measured in terms of one half of the national mean household income. 'By this yardstick, one in 10 British children, or 1.4 million, were living in poverty in 1979. As of 1993-4, the latest year for which figures were then available, the numbers had risen to 4.2 million children, or one in three. In Northern Ireland, the proportion is nearly 40%.' Excluded from these figures are the 200,000 children who are members of homeless families (a category that grew by 250% from 1978 to 1990). Neither do they include older teenagers living on the streets or asylum-seekers.'

Figures from 'households below average income' show 30% of children are now growing up in households without a full-time adult earner. (CPAG, Britain Divided)

Monitoring Poverty and Social Exclusion by Catherine Howarth, Peter Kenway, Guy Palmer and Cathy Street, published in 1998 by the New Policy Institute with support from the Joseph Rowntree Foundation, identified 50 key signs of disadvantage, including 14 relating to children and young adults. The report is available from the Joseph Rowntree Foundation for £16.95 plus £1.50 p&p. A fuller summary is available on their website at www.jrf.org.uk/knowledge/findings/socialpolicy/sprD48.asp

The key indicators of disadvantage identified were:

    *work-rich and work-poor households - the number of children living in households with no working adults growing from under a fifth in 1979 to almost a third in 1997. More than 2.5 million children are currently growing up in 'work-less' households.

    *the number of children living in households with less than half the average income - more than 3 million children - one in three - fall into this category, almost 3 times as many as in 1979.

    *children on free school meals - 67 LEAs recorded an increase in the number of children receiving free school meals in particular primary schools, as compared to only 33 recording an increase in 1994.

    *divorce - the number of divorces amongst unskilled couples has risen to more than twice the average for all couples.

    *health - under-weight babies are more likely to be born to parents in families with low social status and to lone mothers.

    *education - 200,000 children failed to obtain at least one GCSE of grade C or above and 30,000 leave school with no graded GCSEs. School exclusions have risen to more than 12,500 in 1997 from 2, 500 in 1991. Black pupils are six times more likely than white children to be excluded.


Labour "fails to plug the gap between rich and poor"

Tony Blair's plan to reduce inequality was dealt a blow in August 2005 as research showed that the income gap between rich and poor has widened significantly under Labour. Data from the Office of National Statistics showed that the incomes of the best and worst-off had risen by about a fifth between 1995 and 2003. However, that translated into a weekly rise of £119 for the richest 10% and only £28 for the poorest.

The report, Focus on Social Inequalities, showed that slow progress has been made in increasing the educational achievements of 16-year-olds under Labour. In 2002, 77% of children with parents in higher professional occupations gained five or more top grades at GCSE. This was more than double the 32% achieved by children with parents in "routine occupations". While that gap has narrowed to 45 percentage points from 49 in 1998, it is still greater than the 44-point gap achieved by the Conservative Government in 1992. The ONS said, "People in the United Kingdom are better-off than in the past across a range of measures but the benefits are not spread equally. Household income and educational attainment have improved overall but the gaps remain large."

(The Times, 24 August 2005)


Income gap checked but inequality remains

The income gap between rich and poor in Britain, which widened during the Thatcherite 1980s, has been checked under Labour, but inequality in household wealth is still growing, the Government admitted yesterday. The Cabinet Office's strategic audit, titled Progress, admits that income inequality is high by international standards.

Especially striking is the admission that "educational attainment is strongly correlated with social class in the UK," even though the fastest improvements since 1997 had come in the most deprived schools. But only 74% of 17-year-olds are in full-time education, one of the lowest rates in the developed world. Other evidence in the survey underlined how less able children from higher social groups could catch up and overtake disadvantaged children by the age of six.

Overall, the audit showed the UK to be upbeat about individual and national prospects. "Substantial and sustained progress" had been made across the economy and public sector, creating a platform for "significant gains" in the coming years, according to the Cabinet Office minister David Miliband.

(Guardian, 22 February 2005)


Wealth gap "widened under Labour"

Labour has presided over seven years of widening income and wealth inequality since coming to power, a left-leaning think tank claims. The gap between rich and poor has expanded and social mobility has decreased, says the Institute for Public Policy Research. The findings come a decade after a report by the IPPR's Commission on Social Justice, set up at the request of John Smith, the late Labour leader, which formed a keystone of the New Labour project. The follow-up report, Rethinking Social Justice, suggests that the UK has become less equal since 1997, with any improvements achieved by "stealth", according to Nick Pearce, director of the IPPR. The picture is not entirely negative, with Britons on the whole enjoying better health and life expectancy and less likely to experience poverty or crime than in 1997.

But the report found that people's lives were still largely determined by the social class of their parents and their ethnic background. The proportion of income going to the richest 1% of the population more than doubled from 6% to 13% between 1980 and 1999, while the share of national wealth held by the richest 10% rose from 47% to 54% between 1990 and 2000.

(Financial Times, 3 August 2004)


Holidays, hobbies and bedrooms: the test of being poor

Children whose parents cannot afford to buy them a bicycle, take them swimming at least once a month or invite their school friends round for tea every fortnight, will be officially classified as poor.

A new measure of child poverty, unveiled by the Government, takes into account for the first time the "material deprivation" that children suffer. The measure provides the first official recognition that poverty in 21st-century Britain is no longer about survival and the ability to afford food and shelter. Instead it is about people's ability to participate in the same social activities with each other. The measure will be used by the Government in deciding whether it is meeting its much-trumpeted policy of reducing and then eradicating child poverty.

Jonathan Bradshaw of the University of York said: "Poverty is not about survival any more, it's about being able to participate in the society in which we now live." The report illustrates how the general rise in prosperity has influenced perceptions of what constitute the necessities of life. Goods and services that were once luxuries have become more available and are perceived as necessities by increasing numbers of people. Notions of poverty have also been affected by changes in taste, fashion and technology.

In 1983 only 32% of people thought that having friends or family visit for a meal was a necessity. By 1999, this had risen to 65%. The proportion of adults who believed that a computer was necessary for their child more than doubled from 20% to 42% between 1995 and 1999. A key test of the new measure's effectiveness will be in seeing where the Government sets the threshold for poverty for 2004-05, against which future performance will be measured, and whether it decides to include all the items on its material deprivation list or just some of them.

(The Times, 19 December 2003)


Child poverty reduced

Extra benefits and new tax credits for low-income families have dramatically reduced hardship and child poverty, according to research.

The policy Studies Institute found that poor families' incomes increased by a third between 1999 and 2001. The percentage of children experiencing hardship fell from 67 to 53, while the percentage suffering multiple hardships fell from 28 to 15. In 1999, 41% of out-of-work families were in severe hardship; by 2001, 22%.

The study, based on interviews with 8,000 families, measured 40 items that low income families sometimes had to go without, including hot meals, clothes and outings.

(Times, 25 July 2003)


Poverty and social exclusion in Britain, Joseph Rowntree Study (September 2000)

The Joseph Rowntree Trust has published the findings of researchers from the Universities of Bristol, Loughborough, York and Heriot-Watt  with fieldwork undertaken by the Office for National Statistics. The study uses a variety of measures of poverty in addition to income, including the lack of socially perceived necessities and subjective measures. It says it is the first national study that attempts to measure social exclusion.

Findings include:

  • Poverty has risen sharply. In 1983, 14% of household lacked three or more necessities because they could not afford them. That proportion had increased to 21% in 1990 and to over 24% in 1999
  • By the end of 1999, 26% of the British population were living in poverty, measured in terms of low income and multiple deprivation of necessities.
  • Roughly 9.5 million people cannot afford adequate housing conditions.
  • Around four million are not properly fed by today's standards.
Items defined as necessities are those more than 50% of the population believes "all adults should be able to afford and which they should not have to do without."

The list of items deemed necessary does not refer to book ownership except for owning a dictionary. 53% said this was a necessity, 44% said it was not necessary. 6% said they did not have and did not want a dictionary, 5% said they did not have and could not afford a dictionary.

About 33% of British children go without at least one of the things they need, such as three meals a day, toys, out of school activities or adequate clothing. 18% of children go without two or more items or activities defined as necessities by the majority of the population.
 

The study defines four areas of social exclusion:
Exclusion from an adequate income
Labour market exclusion - 43% of adults have no paid work
Service exclusion - only about half the population has access to the full range of services (eg gas, water etc.).
Exclusion from social relations - men living alone had a high risk of social exclusion, nearly 11% of the population have very poor personal support available in times of need.
 

A detailed summary of the report is available on the Joseph Rowntree website: www.jrf.org.uk/knowledge/findings/socialpolicy/930.asp. The full report by David Gordon et al. ISBN 1 85935 059 3, £15.95 is available from York Publishing Services on 01904 430 033.


Measuring poverty

Government creates official yardstick for measuring poverty

Up until recently, presenting statistics about poverty was not a straightforward exercise. According to the Child Poverty Action Group (CPAG) in their 1997 publication Britain Divided, 'UK Governments of all political persuasions have resolutely refused to tread the difficult path of adopting an official definition of poverty.' This makes the present Government the first to adopt an official definition of poverty and to measure progress against recognised criteria.

In September 1999 the  Government  published a report, Opportunity for All. Tackling Poverty and Social Exclusion, an annual audit on the state of poverty in England. In it ministers report that one in three children are living in poverty today.  The statistical basis of that claim, the number of households with incomes below the national average, inow includes milestones in education, health, employment and housing as well as disposable cash.
Educational indicators range from increasing the proportion of seven-year-olds achieving Level 2 or above in Key Stage 1 tests for English and maths to boosting the number of 19-year-olds gaining at least two A-Levels or their equivalent.

The report Opportunity for All, Tackling Poverty and Social Exclusion, can be downloaded from the Department of Social Security website at

http://www.dwp.gov.uk/publications/dss/1999/poverty/pdfs/summary.pdf

Data released by the Department of Social Security in July 2000 revealed that between 1997 and 1999 the number of people living in households on less than half average income rose from 16.9% to 17.7%, as the incomes of the rich grew three times as rapidly as those of the poor. The number of pensioners living below the poverty line rose from 2 million to 2.4 million - accounting for 80% of the increase. Thus a widening gap between the rich and the poor pushed 500,000 more people below the poverty line in Labour's first two years of office.

The DSS's figures showed an increase in children living in poverty from 3 million to 3.4 million in Labour's first year in office.

The richest 10% of the population saw their incomes rise by 7.1% in the first two years of Labour, compared with 4.3% in the last two years of the Tories. The poorest saw their incomes rise by 1.9% in the same period.

What has improved:

  • The number of children living in homes where nobody is in work has fallen by more than 250,000 since the election. In 1997 the figure was 17.9% but by spring 2000 this had fallen to 15.8% with most of the fall happening in the last 12 months.
  • There are one million more people in work than in 1997.
  • The number of people sleeping rough rough fell by more than 30% between June 1998 and June 2000.
  • The number of permanent exclusions from school fell by 15% between 1997/98 and 1998.99.
The figures also show that the Government's objective of lifting 1.2 million children out of poverty by the next election is still a long way off.

For more information see www.dwp.gov.uk

(Source DSS press release, 21 September 2000)


Is the poverty gap decreasing?

Poverty study claims underclass is a myth

The existence of an underclass of the permanently poor is a myth, a Left wing think tank claimed in August 2002, presenting a direct challenge to assumptions at the heart of Labour policies on welfare reform.

According to a pamphlet published by Catalyst, poverty is normally temporary and most people who are poor will not stay poor for life. This is at odds with labour strategy designed to "offer a hand up not a hand out" to those in danger of being permanently confined to the bottom of the social scale.

The Catalyst pamphlet, Poverty and the Welfare State: Dispelling the myths, written by Paul Spicker is unusual because Catalyst is an 'Old Labour' organisation. The existence of a permanent economic underclass is more often challenged by thinkers on the right who believe that market forces can be trusted to lift individuals out of poverty.

The pamphlet quoted figures showing that 39% of children were in the lowest part of the income distribution for at least one year from 1996 to 1999, but that fewer than half of those stayed in that poverty bracket for the whole four years.

This contradicts the claim made by Alistair Darling, the Work and Pensions Secretary, who is one of the principal architects of the Government's welfare reforms. He said that a third of Britain's children were born into poverty and that, "if we do nothing, these children will not only be born poor, but they will live poor and die poor".

Catalyst said: The Government believes there is a large hard core of persistently poor people, that poverty is long term and that it is passed from generation to generation. "This is not consistent with the evidence."

Mr Spicker pointed out that 60% of the population spent at least one year in the bottom 30% of the income distribution between 1991 and 1999.

"People move through dependency, and most poverty is temporary. Poverty is generally an experience for a part of people's lives, not all of it. Few people under retirement age who have low incomes now have been poor throughout the last five years.

"Relatively few people who are unemployed stay unemployed continuously. Most young people who are currently poor will either obtain work, or settle down with someone else who is not poor."

In a swipe at Government policy, he added that it was a mistake to base policy on the assumption that a large underclass of people living in long-term poverty existed.
"Systems that focus on 'the poor' are usually poor systems. The obsession with targeting the dependent poor has added to the complexity and the administrative problems of the benefits systems.

"The best way to help the poor within the welfare site is not to target programmes more carefully on the poor, but the converse: to ensure that there is a general framework of resources, services and opportunities which are adequate for people's needs, and can be used by everyone."

(Telegraph, 28 August, 2002)


Clearer poverty definition 'vital'

The Government's ambitious plan to eliminate child poverty in a generation is "bound to fail" unless it creates a more accurate definition of poverty, a leading thinktank warned in August 2002.

Accusing ministers of "fighting poverty blind" because they do not really know who is poor in modern Britain, the Social Market foundation (SMF) proposes a better model for measuring poverty and deprivation - and warns it is likely to show that single parent families are getting a raw deal.

The reason is that current poverty measurement does not make enough allowance for the costs of childcare - which a couple can often manage without paying for, or the fact that "two can live as cheaply as one", the SMF says.

"If the Government has no settled and adequate measure of poverty, then it cannot reliably assess how its policies are contributing to reducing poverty," writes analyst, Tom Startup. He calls for a cross-party consensus on an 'official headline' definition of the problem as a long-term contribution to tackling it.

The labour Government has made repeated high-profile promises since 1997 to eradicate child poverty by 2020; the stakes are high. Ministerial claims to have taken 1 million of Britain's 4 million poor children out of poverty, thanks to the working families tax credit and other measures are disputed.

Critics say the true figure is closer to 500,000, though both are sustainable claims if different criteria are used. Few dispute that inequality - not the same as poverty, Mr Startup stresses - has grown sharply, making Britain one of the more unequal industrialised societies.

Ministers admit that progress is harder than expected. But in his IMF pamphlet, Poor Measures, Mr Startup argues that no system used by nation states, the EU or international agencies including the UN is flawless, and there is none on offer that Britain should adopt.

Instead, Mr Startup adapts aspects of ideas pioneered in Victorian Britain, modified more recently by Government statisticians  in Ireland, Australia, Sweden and the United States, to propose a version of the "budget standards" methods.

The model decides what constitutes an adequate standard of living in terms of a "basket of goods and services" - a return to the Victorian starting point rather than defining poverty as below 50%, or more recently 60%, of the average or median family income.

This method has been widely used in Britain and across the EU for 40 years. but the SMF points out that such methods can create false impressions, such as during Ireland's 'Celtic tiger' boom, when annual growth was 7% - 8%. Deprivation among the poorest was eased, but because average incomes grew much faster, it looked as if poverty was rapidly increasing.

In fact, those who were deemed consistently poor, suffering both low incomes and "substantial deprivation" in being unable to afford key necessities like proper housing, were later said to have fallen from 14.9% to 9.9% in the mid-1990s.

Britain has had some of the same problems and researchers have established that having less than 60% of the median income does not mean a family is deprived in as many as 70% of cases.

Some families deliberately fulfil their children's needs at the expense of their own; others forgo necessities for 'luxuries' like drink and cigarettes.

The poverty minister Malcolm Wicks welcomed the SMF proposal as a contribution to the debate. Mr Darling's four options for a fresh approach last April includes two which are within striking distance of the SMF: a core set of indicators of "consistent poverty", and a headline measure of that poverty, which would combine low income with signs of material deprivation - e.g. lack of a warm coat.

Though it is impossible to predict whether a new method would reveal more or less overall poverty, Mr Startup suggests the situation might be much the same for two-parent families, but seriously worse for single-parent ones.

(Guardian, 27 August 2002)


Rich get richer, but greater prosperity fails to bring a wealth of well being

For many better-off earners, more money would make little difference. But it has got harder to be poor.

According to figures from the Office of National Statistics, in 2001 the top 25% of full-time workers were earning more than £580 a week, equivalent to over £30,000 annually. That was more than 130% of the average weekly wage, against 117% in 1982.

Meanwhile Inland Revenue statistics show the number of people earning more than £100,000 a year has jumped by almost 50% in just four years, to about 326,000, out of 28.5 million in employment.

In 2001, half the British full-time workforce was earning less than £19,000 a year - equivalent to 83% of average weekly pay. Two decades ago their share was as high as 90%.

The bottom tenth of full-timers have seen their cut of average weekly earnings drop from less than 60% to less than 46%.

Mr Paul Gregg, an economist at Bristol University, says pay inequality accelerated fastest in the 1980s and early 1990s. Factors included cuts in higher rate tax, a decline in the power of unions and an increase in the economic value of highly trained professionals. Since then, "there has been a sharp slowdown in inequality, but no overall decline".

Disparities in household incomes have continued to accelerate as a result of social change. The trend for women to combine full-time work with motherhood has lifted the joint income of professional couples.

But more single mothers meant that "by 1996 there were three times as many households with no work as in 1989". Almost 4 million out of 13 million live in poverty, defined as less than 60% of median income.

Professor Andrew Oswald, an economist at Warwick University, believes many Britons have reached a level of affluence where further material success - even when measured against one's peers' achievements - no longer greatly improves well being. Long hours and, particularly in the south-east, long commutes, are cited in surveys as causes of unhappiness.

The poor, meanwhile, are left gazing through a barred window of deprivation at vistas of unattainable prosperity.

"It is harder to be poor these days," says Professor Carl Chinn, a historian at Birmingham University. "A few generations ago most people were poor. Now they are in a minority, constantly exposed to images of a better lifestyle and dehumanised by terms like 'underclass'."

(Financial Times, 20 August 2002)


One in 10 Britons living in Third World conditions

Nearly one in 10 Britons has experienced conditions of "absolute poverty" without basic human necessities such as enough food, safe drinking water and proper sanitation according to a report from Bristol and London University. The report is the first to measure poverty scientifically using the United Nations definition, which defines absolute poverty as a shortage of food, safe drinking water, sanitation facilities, health, shelter, education and information.

(Independent, 9 March 2001)


Divisions between London's rich and poor mirror Victorian times

A unique study of London's social geography, published at the end of December 2000, reveals that 100 years of policy initiatives have failed to shift the boundaries that divide the rich from the poor, or to close the gap between them.

By comparing modern London with "maps" of poverty made in the city more that a century ago, researchers from the universities of Leeds, Bristol and Cardiff have demonstrated the extent to which the divisions between London's social classes have remained rigid.

(Independent, 22 December 2000)
 


Cities lose out in poverty league table

In April 2000 the Government announcced that the poverty index, which is used to target regeneration funds at the poorest areas, was to be altered. The new index, compiled by academics at Oxford University, uses six indicators: income, work, health, education, housing and geographical access to services and transport, rather than the 12 used in the previous index. Rural areas are set to gain more funding while many deprived inner city areas will lose hundreds of millions of pounds of Government funding because the new poverty league table has been based on different criteria.

Under the new rankings, only six London boroughs are in the top 20 and only 13 rank among the top 65, which together receive 80% of all single regeneration budget funding which was worth £16 billion over the past four years. A high ranking on the index is also a factor in the bidding process for the new deal for communities.  London authorities and metropolitan councils argue that the new index fails to recognise that cities have a mixed pattern of affluent areas and small pockets of severe deprivation. But rural authorities that benefited have welcomed the changes.


Statistics showing which groups are most affected by poverty

The number of people living in poverty - defined as below half average income level (adjusted for family size, after housing costs) - has risen from five to 14 million - or a quarter of the population since 1979.  As the table below shows poverty among adults is more common for women than for men; children are even more likely to be in a poor household.   Unemployed households are the most likely to be poor; followed by lone parent families; the greatest number of the poor continue to be the elderly.

     
    The bottom line:  People in poverty by personal, economic and family status.1996-7,UK
      Total Number Proportion Poor Number in Poverty
    Adult women 22.2m 24% 5.3m
    Children 13.0 35% 4.5m
    Adult men 21.1m 20% 4.2m
    Elderly 9.8m 31% 3.0m
    Lone parent family 4.3m 63% 2.9m
    Unemployed 4.6m 78% 2.3m
    All   25% 14.1m
    Note: Poverty defined as below 50% average income after housing costs 
    Source: Department of Social Security,1998
(David Piachaud, Guardian, 1 September 1999)


Health study finds UK still riven by opportunity gap between rich and poor

A study commissioned by the Department of Health has found that Britain is still riven by gaps between rich and poor. The study by the Smith Institute has found economic opportunities for the most disadvantaged 30-year-olds are as poor today as they were for their parents. The "map of inequality" is based on two tracking studies of 16,000 people born in 1958 and 1970.

The opportunity gap between the two generations has remained the same even though the parents of those born in 1970 were better educated.

The report's authors conclude: "The figures demonstrate convincingly that family social class and parents' educational level at the time our respondents were born were critically important factors in determining what was going to happen to them 16 years later."

The study found that female graduates are eight times more likely to have full-time jobs and that the average gap in educational achievement between daughters of professional fathers and unskilled fathers has remained the same. It found men born in 1970 who have no qualifications are 12 times more likely than those with degrees to be jobless at the age of 26. Those with jobs lived on pay considerably lower than the children of professional parents.

(Independent, 12 July 2000)


One in five children in poverty, says Unicef

More children are living in poverty in Britain than in any other European Union country except Italy, with numbers having trebled in 20 years, according to Unicef, the United Nations children's agency. In a report published in June 2000 Britain came 20th out of 23 countries in a league table of relative poverty.

The United States was second from the bottom, despite being among the wealthiest of nations.

Critics of the findings questioned Unicef's measure of poverty. It defined as poor families on incomes less than half their national average.

Alistair Darling, the Social Security Secretary, said the Unicef figures were based on 1995 data, before Labour came to power.

(Telegraph, 14 June 2000)


ONS report shows how the gap between the rich and poor has grown

The gap between the rich and the poor in Britain continued to grow right through the 1990s, according to the Office of National Statistics (ONS) report on social inequalities published in May 2000. The report highlights the scale of the social justice problem with April 1998 figures showing that about three million children were still living below the poverty line in families with incomes of less than 60% of the median - the middle value - income. The report is a first for the ONS and is a mark of a new official recognition of the need to tackle social exclusion.

The report shows that the pay gap between men and women remains as wide as ever. Average gross annual earnings for April 1999 show that men in full time jobs earned about £23,000 a year - 42% more than the average £16,000 a year earned by women in full-time work.

There has been a rapid expansion in the number of young women in further and higher education from 1 million in 1970 to about 2.5 million by 1998.

Poverty and class differences are still an important influence on educational attainment. The report says that high levels of children eligible for free school meals generally correspond with lower GCSE attainment levels.

When it comes to social class the differences are even more striking. In 1998, only a fifth of those whose parents were in unskilled manual jobs achieved five GCSE passes at grades A to C. In contrast, more than two-thirds of children of the professional and managerial classes got five GCSEs at this standard.

Educational success is also linked to ethnic background but not always in a straightforward way. The 1998 figures show that children from Indian families are outperforming white children in exams. But black, Pakistani and Bangladeshi pupils do less well - though the latter appear to be improving the most rapidly with the proportion getting five GCSEs more than doubling from 14% in 1992 to 33% in 1998.

8% of all boys and 5% of all girls received no graded GCSEs or their equivalents . Men without qualifications are four times more likely to be unemployed in 1999 than those who had a degree education.

The number of university students trebled from 620,000 in 1971 to almost 2 million in 1998, mostly resulting from the rising number of women entering higher education. Thirty years ago, 33% of university students were women; now there are more women than men.

(Guardian, 11 May 2000)


Poor have risen 500,000 under Labour

The number of people in Britain classified as very poor has increased by half a million since 1997 when Labour came to power, according to a study published by the Joseph Rowntree Foundation in December 2000. The number of people living in households with less than 40% of the average income is now 8,750,000. It also reveals an increase in the number of people living below the poverty line - defined as less than half the national average income - to 14,250,000 over the past two years. This is one million more than in the early 1990s and more than double the number of the early 1980s.

The report was complied by the New Policy Institute and is the third in a series of annual publications used to monitor the Government's success in improving the life of the poor. It is independent and uses a wider set of figures than the Government's own poverty audit. Fifty indicators of poverty are used in the report out of which only seventeen improved in the last year.

The figures were compiled before the Government initiatives such as the working families tax credit came into effect.

The numbers of poor children have failed to drop. In 1998 there were 4.5 million children in households classified as poor - a threefold rise in the past 20 years.

For the Government to reach its target of eradicating child poverty by 2020 there will have to be a net reduction of children in poor households of more than 200,000 each year.

According to the study educational standards are improving and the number of school exclusions falling.

(The Times, 11 December 2000)

Monitoring Poverty and Social Exclusion is compiled by the New Policy Institute and published by the Joseph Rowntree Foundation. The report is available at www.jrf.org.uk


Reducing child poverty on target

Ministers are on course to meet their target of taking a million children out of poverty by 2004, according to research. But they will struggle to meet their long-term target of halving child poverty by 2010, a study for the Josph Rowntree Foundation says.

Poverty in Britain: The impact of Government policy since 1997 by Holly Sutherland, Tom Sefton and David Piachaud is available at www.jrf.org.uk

(TES, 17 October 2003)


Social mobility declines despite education gains

Social mobility has fallen in the UK over the past 40 years and a key cause, paradoxically, has been the rise of higher education, according to a study from the London School of Economics.

The finding that the less well-off have a reduced chance of climbing the social ladder than those of the previous generation comes despite the widespread belief that wider educational opportunities will benefit young people of all backgrounds.

The study suggests it does so - but the children of better-off parents still gain more than the children of less well-off, producing a fall in social mobility.

The findings make discouraging reading for the Government which aims to increase the social mobility of the less well-off by increasing to 50% the proportion of young people who gain a degree.

The LSE's Centre for Economic Performance looked at the outcomes for children born in 1958 and 1970 - the generations that gained from the big expansion in higher education in the 1970s and the 1980s.

Over the same period, income inequality widened dramatically so that the proportion of children living below the poverty line at age 16 rose from 6% to 10% - a proportion that rose further in the 1980s.

The study found that the incomes achieved by those born in 1970 were determined to a significantly higher extent by the income of their parents than was the case for those born in 1958. "It is clear from these figures that economic mobility between generations has fallen in the UK in the last 40 years," the study says.

Education explains about a third of the increase in immobility, with the implication "that those who took advantage of the expansion in university places came in general from higher social backgrounds". The research also found that there was less mobility among parents at the top of the incomes table than those at the bottom.

For a copy of the research contact the Centre for Economic Performance on 020 7955 6963.

(Financial Times, 17 June 2002)


Poverty targets could deepen deprivation

The Government's target of reducing child poverty by a quarter by 2004/5 risks making the most deprived children worse off, according to research released in July 2002.

The Institute for Social and Economic Research study argues that pressure to meet the Government's target could lead to administrators "creaming" money or services from the poorest to help borderline families rise above the poverty line. "By redistributing benefits or services away from the very poorest (who are so far below the poverty line that they are likely to stay poor anyhow) to those just below the poverty line, administrators can improve the poverty rate, even while deepening the deprivation of the worst off - which is surely not a socially desirable outcome," the report says.

The study is the latest blow to the Government's unprecedented drive to tackle child poverty.

A study by the Organisation for Economic Co-operation and Development published in 2001 showed that the UK has one of the strongest links between social deprivation and educational underachievement.

In April 2002, official figures showed that fewer than half a million children had been lifted out of poverty during the Labour Party's first four years in office.

That leaves the party with an uphill struggle if it is to meet its target by 2005. Eradicating child poverty altogether, which ministers have promised to achieve by 2020, will prove even more difficult if it manages to remain in office that long.

Part of the problem is that poverty is measured on a relative rather than an absolute basis. For example, Mike Brewer and Alissa Goodman of the Institute for Fiscal Studies point out that if average incomes had not risen since 1997, then Labour would be able to claim to have helped 1.3 million children escape poverty.

Critics also claim that Gordon Brown has made life more difficult for himself by relying to a large extent on tax credits to alleviate poverty.  It is argued that many of those who should benefit from Mr Brown's initiative have not done so because they do not understand the tax system or have not been made aware of the help on offer.

(TES, 21 June 2002)


20% of all children live in one-parent families

A fifth of all children in Britain now live in a one-parent family. The figure represents a rise from 12% in 1981 with Britain now having the largest proportion of single parents in Europe.

In Belgium and Germany the figure is 14%, in France 13%, 12% in Ireland and Austria, 10% in Holland and Luxembourg, 9% in Portugal, 8% in Italy and 6% in Spain.

The figures come from the Office for National Statistics.

(Telegraph, 1 August 2002)


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