Anti-poverty strategies for the UK
October 2014
Chris Goulden, Head of Poverty Research, JRF
It’s time to rethink poverty
• Half of people in poverty live in working
households
– One in five workers is low paid
• Poverty prevents the economy from firing on
all cylinders
– Child poverty costs us £29bn each year
• Debate on poverty is divisive
– But 62% think there is “quite a lot of poverty”
• Poverty exists but it’s not inevitable
What is poverty?
• When you can’t afford to meet your basic needs
– Includes taking part in society (birthday presents, school
trips…)
• Two basic solutions
1. Increase people’s resources
2. Decrease the cost of meeting needs
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Needs a comprehensive approach, addressing:
 Taxes and benefits
 Labour markets
 Cost of essential goods & services
 Where we live
 The choices we make
Almost anyone can experience
poverty
• Poverty is dynamic
– Over half of the population experienced at least
one year in poverty during 1991-2003
• But some groups at much greater risk
– Including those with complex needs
• Aspirations remain high despite poverty
– 97% of mothers want child to go to University
Costly, wasteful & risky
• Poverty affects educational achievement and
earnings in later life
• Child poverty costs the UK £29bn each year
• Work needs to be a route out of poverty
– 56% of working households have someone paid less
than the Living Wage
• Job insecurity is bad and worsening
– Half of men newly claiming JSA have done so in
previous 6 months
• And many cannot work from disability or caring
Previous strategies have had…
• No vision of a poverty-free UK
– No long-term cross-party support
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No link between actions and outcomes
No dynamic or life course approach
No involvement of people in poverty
No consideration of policy interactions
Not really strategies at all
Programme structure
2013/14
Evidence for
policy ideas
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33 evidence reviews
4 theory reviews
Participation
Think Tank seminars
Policy ‘Dragon’s Den’
Other JRF programmes
2014/15
2015/16
Policy
development &
modelling
• Agent-based
• Household
• Dynamic
Strategies
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UK Blueprint
Scotland
Wales
Northern Ireland
Timetable
Task
Date
Commission models of poverty
Done
Publish 33 evidence summaries
Done
Publish ‘a UK without poverty’
Done
Publish reviews of theory
Autumn 2014
Refine and test policies
Now to mid-2015
Start to draft strategy for UK
Early 2015
Publish UK strategy
Dec 2015
Publish strategies for Scotland,
Wales and Northern Ireland
During 2016
Implementation???
2017+
What policies might work?
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Universal Credit, better and more generous design
Incentivise welfare to work systems to reduce poverty
Fairer benefit uprating
Action on pay through NMW increases & Living Wage
Localise skills budgets, co-ordinated with employment programmes
Business-sector led skills development strategies
Increase affordable housing supply
Area-based energy efficiency schemes
Rebalance childcare support on those with lowest incomes
Reform markets for essential goods and services
Raise teaching quality in schools with most poor pupils
Co-location of advice and support, including for relationships
Long-term, intensive support for complex needs
Where are we heading?
• If we don’t act now, poverty will increase
– Also would if 2010 system had been in place
• Prices of essentials have been rising fast while
wages at the bottom and benefits stagnate
• Technological change & globalisation lead to a
divided job market
• Demographic pressures: living longer but with
poorer health, alone, diverse families
• Climate change affecting poorer communities
A comprehensive approach
 Nature of work at the bottom end of the labour market
 Cost of living, markets for goods and services and
regulators
 Whether people can reach their potential at school or at
work
 Civil society and private institutions that are important in
people’s lives
 The choices that people make
• Poverty is real but not inevitable
– Look at pensioner poverty
• A poverty-free UK would not only be good for people who
experience poverty; it would be good for everyone