Socio-economic Inequality, Socio-economic Inequality, Poverty & Financial InsecurityPoverty & Financial Insecurity

Planning Effective StrategiesPlanning Effective Strategies

Sanjoy K. NayakSanjoy K. NayakEdge Hill UniversityEdge Hill University

Poverty and Inequality in UKPoverty and Inequality in UK

Poverty is not only deprivation of economic or Poverty is not only deprivation of economic or material resources but a violation of human material resources but a violation of human dignity too. The UN (2001) provides a broader dignity too. The UN (2001) provides a broader definition of poverty:definition of poverty:

‘‘a human condition characterised by the a human condition characterised by the sustained or chronic deprivation of the sustained or chronic deprivation of the resources, capabilities, choices, security and resources, capabilities, choices, security and power necessary for the enjoyment of an power necessary for the enjoyment of an adequate standard of living and other civil, adequate standard of living and other civil, cultural, economic, political and social rights.’cultural, economic, political and social rights.’

Human Rights Approach to PovertyHuman Rights Approach to Poverty

The UN definition brings together two important and The UN definition brings together two important and related themes in contemporary understandings of related themes in contemporary understandings of poverty: the ‘human rights’ and the ‘capability approach’ of poverty: the ‘human rights’ and the ‘capability approach’ of Nobel-prize winning economist Amartya Sen.Nobel-prize winning economist Amartya Sen.

The ‘capability approach’ addresses poverty as ‘the The ‘capability approach’ addresses poverty as ‘the deprivation of basic capabilities rather than merely as deprivation of basic capabilities rather than merely as lowness of incomes.’ (Sen, 1999)lowness of incomes.’ (Sen, 1999)

Suggested basic capabilities for a life with human dignity Suggested basic capabilities for a life with human dignity include the capability to live a human life of normal length, include the capability to live a human life of normal length, to ensure one’s bodily health and integrity, to be treated as to ensure one’s bodily health and integrity, to be treated as someone whose worth is equal to that of others, to have someone whose worth is equal to that of others, to have control over one’s political and material environment.control over one’s political and material environment.

Relative Poverty: %age and number of individuals in households Relative Poverty: %age and number of individuals in households with incomes below 60% of median AHC income (IFS 2007)with incomes below 60% of median AHC income (IFS 2007)

Income Distribution in UK (2005-06)Income Distribution in UK (2005-06)

Real Income Growth by Quintile Group, 2004-05 to 2005-06 (GB)

Financial InsecurityFinancial Insecurity

• Over 10.5 million people live in financial Over 10.5 million people live in financial insecurity: they can’t afford to save, insure their insecurity: they can’t afford to save, insure their house contents, or spend even small amounts house contents, or spend even small amounts on themselves.on themselves.

• About 9.5 million can’t afford adequate housing About 9.5 million can’t afford adequate housing – heated, free from damp, and in a decent state – heated, free from damp, and in a decent state of decoration. The crucial factor about these of decoration. The crucial factor about these findings is that they are based on a survey of findings is that they are based on a survey of what the general population sees as what the general population sees as necessities.necessities.

The North-South DivideThe North-South Divide

Office of National Statistics (9th June 2010):Office of National Statistics (9th June 2010): the North-South divide is still very much in the North-South divide is still very much in

evidence, with Londoners earning more than 50% evidence, with Londoners earning more than 50% more on average per week than their North East more on average per week than their North East counterparts.counterparts.

those in London and the south of England also those in London and the south of England also enjoy above average health, while residents in the enjoy above average health, while residents in the North East, North West and Yorkshire and The North East, North West and Yorkshire and The Humber have lower life expectancy and higher Humber have lower life expectancy and higher mortality rates from cancer, respiratory & circulatory mortality rates from cancer, respiratory & circulatory diseases, compared with the England average.diseases, compared with the England average.

Public spending compared to poverty Public spending compared to poverty before and after housing costsbefore and after housing costs

(100=public spending in line with need) 2005-6

The impact of povertyThe impact of poverty

Poverty makes people’s lives shorter and more brutal Poverty makes people’s lives shorter and more brutal than they need to be. Poverty is not simply about being than they need to be. Poverty is not simply about being on a low income and going without – it is also about on a low income and going without – it is also about being denied power, respect, good health, education and being denied power, respect, good health, education and housing, basic self-esteem and the ability to participate housing, basic self-esteem and the ability to participate in social activities.in social activities.

Poverty has costs to society as well as the individual. By Poverty has costs to society as well as the individual. By limiting children’s educational attainment it reduces the limiting children’s educational attainment it reduces the skills available to employers, and impedes economic skills available to employers, and impedes economic growth. For example a study by the Joseph Rowntree growth. For example a study by the Joseph Rowntree Foundation found that child poverty costs Britain at least Foundation found that child poverty costs Britain at least £25 billion a year.£25 billion a year.

Impact on EducationImpact on Education

On average poorer children score less well on a On average poorer children score less well on a range of educational measures such as reading range of educational measures such as reading tests and GCSE results. tests and GCSE results.

Pupils in England who score at or above level 2 Pupils in England who score at or above level 2 for reading at Key Stage 1:for reading at Key Stage 1: Poorest tenth of areas – 73% of pupils Poorest tenth of areas – 73% of pupils Richest tenth – 93% of pupilsRichest tenth – 93% of pupils

Children who get 5 GCSEs at A*-C grade:Children who get 5 GCSEs at A*-C grade: Children eligible for free school meals – 35.5% Children eligible for free school meals – 35.5% Children not eligible for free school meals – 62.9%Children not eligible for free school meals – 62.9%

Impact on HealthImpact on Health

Life expectancy at birth varies significantly according to social Life expectancy at birth varies significantly according to social class, with professional men expecting to live to around 80 class, with professional men expecting to live to around 80 years and unskilled manual men to 72.7 years. For women, years and unskilled manual men to 72.7 years. For women, the figures are 85.1 and 78.1 years.the figures are 85.1 and 78.1 years.

Poorer children on average experience poorer health during Poorer children on average experience poorer health during their childhoods and the effects of this last throughout their their childhoods and the effects of this last throughout their lives. Three year olds in households with incomes below about lives. Three year olds in households with incomes below about £10,000 are 2.5 times more likely to suffer chronic illness than £10,000 are 2.5 times more likely to suffer chronic illness than children in households with incomes above £52,000.children in households with incomes above £52,000.

The risk of infant mortality is higher for poor children. In the The risk of infant mortality is higher for poor children. In the lower social group (routine and manual occupations) infant lower social group (routine and manual occupations) infant mortality is 5.9 infant deaths per 1,000 live births. This is 20% mortality is 5.9 infant deaths per 1,000 live births. This is 20% higher than the average 4.9 per 1,000.higher than the average 4.9 per 1,000.

Life expectancy at birth (men)Life expectancy at birth (men)

Glasgow (deprived) 54

Bangladesh 61

Philippines 65

Korea 65

Lithuania 66

Poland 71

Mexico 72

Cuba 75

US 75

UK 76

Greater Glasgow (affluent) 82

Sources: World Health Report 2006 & ‘Let Glasgow Flourish’ Hanlon et al 2006

Impact on Social ParticipationImpact on Social Participation

Poverty isolates people, reducing their Poverty isolates people, reducing their ability to engage in social and community ability to engage in social and community life. In a study comparing the poorest and life. In a study comparing the poorest and richest fifth of households, poorer children richest fifth of households, poorer children had fewer opportunities for activities and had fewer opportunities for activities and entertaining friends.entertaining friends.

Impact on Equality & DiversityImpact on Equality & Diversity

For all family work statuses, people from ethnic For all family work statuses, people from ethnic minorities are, on average, more likely to live in low-minorities are, on average, more likely to live in low-income households than White people.  Whilst these income households than White people.  Whilst these differences are relatively small for workless families, differences are relatively small for workless families, they are proportionally much bigger for working families.  they are proportionally much bigger for working families.  In particular, part-working families from ethnic minorities In particular, part-working families from ethnic minorities are twice as likely to be in low income than part-working are twice as likely to be in low income than part-working White British families: two-fifths compared to one-fifth.White British families: two-fifths compared to one-fifth.

Among those in working families, around 60% of Among those in working families, around 60% of Bangladeshis, 40% of Pakistanis and 30% of Black Bangladeshis, 40% of Pakistanis and 30% of Black Africans are in low income.  These rates are much Africans are in low income.  These rates are much higher than the 10-15% for White British, White other higher than the 10-15% for White British, White other and Indians. (Joseph Rowntree Foundation)and Indians. (Joseph Rowntree Foundation)

Public Policy-makingPublic Policy-making

Reflections and DiscussionReflections and Discussion ‘‘Best practices’ from your own work Best practices’ from your own work

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