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| Breadline Britain day two: living on the 'cliff edge' of poverty | Breadline Britain day two: living on the 'cliff edge' of poverty |
| (40 minutes later) | |
| 1.17pm: We are welcoming two guests to discuss Breadline Britain in an online chat today. Bruno Rost of Experian (which crunched the "risk of poverty" data) is now below the line answering your questions, and James Plunkett, secretary to the Commission on Living Standards at the Resolution Foundation, will be joining the discussion shortly. | |
| 1.13pm: The community activist credited with opening Iain Duncan Smith's eyes to poverty and inspiring him to embrace compassionate conservatism has called on the work and pensions secretary to resign, Amelia Gentleman reports. | |
| In a sharp attack on Duncan Smith, Bob Holman sets out how far the secretary of state for work and pensions has drifted from his original commitment to tackling poverty, and urges him to give up his ministerial role. | |
| Duncan Smith's visit to the Easterhouse estate in 2002, when he was leader of the Conservative party, has become famous as the moment that sparked his determination to tackle societal breakdown. Holman took him around the estate's powerful community project, staffed by unemployed volunteers. The occasion became known as the Easterhouse epiphany and in 2003, Duncan Smith announced he wanted the Conservatives to become the "party for the poor". | |
| Holman writes: | |
| Duncan Smith is paradox personified. He wept at the plight of the poor yet now hands out punishments that must bring tears to their eyes. In 2005, at a fringe meeting at the Labour party conference, he called on Labour to promote a definition of lowest income that would allow all to have "sufficient resources to participate in the life of the community". Now, the poorest families are in receipt of food parcels. | |
| So, what should Duncan Smith's next move be? He should resign and become a campaigner for the end of poverty. As a Conservative, he would reach a different audience from those of us who preach to the converted. He should set up an independent commission to assess how much family income is required to enable everyone to be included in mainstream society. Then, he should decide how this could be achieved by redistribution from the top to the bottom – greater equality undermines the very evils Duncan Smith thinks lead to poverty. This would be the most constructive Tory U-turn of all. | |
| 12.37pm: Below the line, I found a link to this excellent post by Caominhe on the Caoimhe Reads Books blog, about her experience of working and being poor. | 12.37pm: Below the line, I found a link to this excellent post by Caominhe on the Caoimhe Reads Books blog, about her experience of working and being poor. |
| Here's an extract: | |
So, how did I become poor? Well, let's take that list of descriptors and see how far they led me to my poverty. Work-shy? Well, I mentioned that I work. I actually enjoy my job, really, really. And, I truly appreciate having it. And, I've always worked. I'm not too proud to take any job (I've worked nights washing dishes for (well) below minimum wage, because I needed a job. I work hard in my current job, and take every single hour I can get (let's strike 'lazy' off the list too). | So, how did I become poor? Well, let's take that list of descriptors and see how far they led me to my poverty. Work-shy? Well, I mentioned that I work. I actually enjoy my job, really, really. And, I truly appreciate having it. And, I've always worked. I'm not too proud to take any job (I've worked nights washing dishes for (well) below minimum wage, because I needed a job. I work hard in my current job, and take every single hour I can get (let's strike 'lazy' off the list too). |
| I am highly educated, which I have done for a love of education. I suppose you could argue that I could have taken a job straight from school I would be rich by now, and certainly I have made my life poorer by going back to Uni again and again. But, I also don't think it's a bad thing. | I am highly educated, which I have done for a love of education. I suppose you could argue that I could have taken a job straight from school I would be rich by now, and certainly I have made my life poorer by going back to Uni again and again. But, I also don't think it's a bad thing. |
| Criminal? Nah, I'm dreadfully well behaved. I'm not addicted to any drugs (except tea, maybe), and I do enjoy going out for a drink, but I'm not a raving lunatic on this either. Scrounger? Well, I have claimed Job Seekers Allowance, but I wouldn't say it was scrounging, since I was seeking a job at the time. Plus, since I earned some money from Uni, I was apparently too rich to get much money. Which was hilarious. | Criminal? Nah, I'm dreadfully well behaved. I'm not addicted to any drugs (except tea, maybe), and I do enjoy going out for a drink, but I'm not a raving lunatic on this either. Scrounger? Well, I have claimed Job Seekers Allowance, but I wouldn't say it was scrounging, since I was seeking a job at the time. Plus, since I earned some money from Uni, I was apparently too rich to get much money. Which was hilarious. |
| I got poor despite working hard, getting educated, volunteering, being a fairly well behaved citizen. I became poor because it's REALLY HARD TO GET A JOB! That's not my fault! I apply for plenty, but there simply isn't enough employment. You know, because of the recession you might have heard about. I'm just on the list of people who are in part-time work, and can't get fulltime. | I got poor despite working hard, getting educated, volunteering, being a fairly well behaved citizen. I became poor because it's REALLY HARD TO GET A JOB! That's not my fault! I apply for plenty, but there simply isn't enough employment. You know, because of the recession you might have heard about. I'm just on the list of people who are in part-time work, and can't get fulltime. |
| Well worth reading the full post. | Well worth reading the full post. |
| 12.09pm: There's been much comment below the line about what constitutes poverty - and whether people are "really" on the breadline or not. | 12.09pm: There's been much comment below the line about what constitutes poverty - and whether people are "really" on the breadline or not. |
| Chris Goulden, Programme Manager for Poverty at the Joseph Rowntree Foundation, explains the relationship between work, poverty and what people consider to be "an acceptable standard of living". | Chris Goulden, Programme Manager for Poverty at the Joseph Rowntree Foundation, explains the relationship between work, poverty and what people consider to be "an acceptable standard of living". |
| He writes: | He writes: |
| "The Guardian has exposed just how near the edge many families are. We expect the number of adults in poverty to rise by nearly 2 million by 2020. Our research indicates that in the long term, poverty is on the increase and simply saying that work is the salvation will not solve the problem. Income through work doesn't necessarily take you out of poverty. | "The Guardian has exposed just how near the edge many families are. We expect the number of adults in poverty to rise by nearly 2 million by 2020. Our research indicates that in the long term, poverty is on the increase and simply saying that work is the salvation will not solve the problem. Income through work doesn't necessarily take you out of poverty. |
| "If you are in work and in poverty, you and your family will still experience all of the impacts that surviving on an inadequate income brings. A couple with two children need to both work full-time and earn at least £36,800 between them to reach the "minimum income standard", based on what members of the public think people need to achieve a socially acceptable standard of living. "Working families in poverty not only earn significantly less than that but they have no financial buffer to protect them from life's vicissitudes: the unexpected cost of a car repair or new fridge can tip them over the edge into poverty. Is that really poor? Yes – this is about need, not luxury. | "If you are in work and in poverty, you and your family will still experience all of the impacts that surviving on an inadequate income brings. A couple with two children need to both work full-time and earn at least £36,800 between them to reach the "minimum income standard", based on what members of the public think people need to achieve a socially acceptable standard of living. "Working families in poverty not only earn significantly less than that but they have no financial buffer to protect them from life's vicissitudes: the unexpected cost of a car repair or new fridge can tip them over the edge into poverty. Is that really poor? Yes – this is about need, not luxury. |
| Our evidence shows repeatedly that people want to work, contribute to society and set a good example to their children, but the reality is, low-paid, insecure and dead-end jobs contribute to the cycle of poverty and that's the real issue that political leaders need to tackle." | Our evidence shows repeatedly that people want to work, contribute to society and set a good example to their children, but the reality is, low-paid, insecure and dead-end jobs contribute to the cycle of poverty and that's the real issue that political leaders need to tackle." |
| 11.43am: One of the intriguing findings in our investigations is the emergence of what we might call "high-growth" sectors serving cliff edge households (and the squeezed middle, and those in poverty). | 11.43am: One of the intriguing findings in our investigations is the emergence of what we might call "high-growth" sectors serving cliff edge households (and the squeezed middle, and those in poverty). |
| We found: | We found: |
| • Payday loans companies such as Wonga are thriving. | • Payday loans companies such as Wonga are thriving. |
| • Charity shops are booming, having acquired an estimated one million new low and middle income customers over the past year. | • Charity shops are booming, having acquired an estimated one million new low and middle income customers over the past year. |
| • Food banks are proliferating (100% growth in the Trussel trust foodbank network in 12 months alone) with demand driven in part by working families struggling to put food on the table. | • Food banks are proliferating (100% growth in the Trussel trust foodbank network in 12 months alone) with demand driven in part by working families struggling to put food on the table. |
| The other interesting development, referred to in Amelia Hill's long read on in-work poverty, is the soaring demand for charity hardship grants. | The other interesting development, referred to in Amelia Hill's long read on in-work poverty, is the soaring demand for charity hardship grants. |
| Traditionally focused on providing discreet assistance to the vulnerable and retired, benevolent funds now find themselves unexpectedly providing a welfare safety net to the young, able and employed who cannot make ends meet. | Traditionally focused on providing discreet assistance to the vulnerable and retired, benevolent funds now find themselves unexpectedly providing a welfare safety net to the young, able and employed who cannot make ends meet. |
| The funds have always helped out beneficiaries with relatively low cost capital items like cookers and essential house repairs. The funds now report that requests are increasingly for help with meeting basic living costs: paying a gas bill or a housing rental deposit; car repairs; even cash for food. | The funds have always helped out beneficiaries with relatively low cost capital items like cookers and essential house repairs. The funds now report that requests are increasingly for help with meeting basic living costs: paying a gas bill or a housing rental deposit; car repairs; even cash for food. |
| I spoke to Judith Smith, a director at the Charity for Civil Servants fund. She told me: | I spoke to Judith Smith, a director at the Charity for Civil Servants fund. She told me: |
| Normally, when we helped working civil servants it was as a result of reduced pay because of ill health. Now 85% of grants go to people working on full pay, who are just not able to get to the end of the month [without running out of cash]. | Normally, when we helped working civil servants it was as a result of reduced pay because of ill health. Now 85% of grants go to people working on full pay, who are just not able to get to the end of the month [without running out of cash]. |
| She added: | She added: |
| Who has become our biggest 'competitor' in the last couple of years? Payday loans companies. People would rather get a payday loan than go to a charity. | Who has become our biggest 'competitor' in the last couple of years? Payday loans companies. People would rather get a payday loan than go to a charity. |
| 10.48am: So, how did up to 3.6m households find themselves on the cliff edge? | 10.48am: So, how did up to 3.6m households find themselves on the cliff edge? |
| One of the most succinct accounts of how many of Britain's lower to middle income working families find themselves on the breadline can be found in a Oxfam report which came out last week. | One of the most succinct accounts of how many of Britain's lower to middle income working families find themselves on the breadline can be found in a Oxfam report which came out last week. |
| Called The Perfect Storm the report sets out the following key elements in the story: | Called The Perfect Storm the report sets out the following key elements in the story: |
| • Rising unemployment and declining incomes • The increased cost of living • Cuts to public services • Welfare reform and benefit cuts • Rising costs of housing • Weak labour rights. | • Rising unemployment and declining incomes • The increased cost of living • Cuts to public services • Welfare reform and benefit cuts • Rising costs of housing • Weak labour rights. |
| There are plenty of crunchy statistics in there. Here are some key ones: | There are plenty of crunchy statistics in there. Here are some key ones: |
| • Spending cuts hit the poorest tenth of the population 13 times harder than the richest tenth. • Seventy-two per cent of the benefit cuts announced in 2010 will be paid by poor women. • The number of Housing Benefit claimants in work more than doubled between November 2008 and February 2012. • Since the recession started, 830,000 permanent full-time jobs have been lost, and half a million new part-time jobs created. The number of people in temporary work because they cannot find a permanent job has risen by 73 per cent. The UK has weaker protection for those in work than Mexico. • Average earnings shrank by 4.4 per cent last year. Incomes of the directors of FTSE 100 companies rose by 49 per cent.(figures for the financial year up to April 2011) • Food prices have risen by 30.5 per cent in five years. The National Minimum Wage has risen by 12.1 per cent in the same period. | • Spending cuts hit the poorest tenth of the population 13 times harder than the richest tenth. • Seventy-two per cent of the benefit cuts announced in 2010 will be paid by poor women. • The number of Housing Benefit claimants in work more than doubled between November 2008 and February 2012. • Since the recession started, 830,000 permanent full-time jobs have been lost, and half a million new part-time jobs created. The number of people in temporary work because they cannot find a permanent job has risen by 73 per cent. The UK has weaker protection for those in work than Mexico. • Average earnings shrank by 4.4 per cent last year. Incomes of the directors of FTSE 100 companies rose by 49 per cent.(figures for the financial year up to April 2011) • Food prices have risen by 30.5 per cent in five years. The National Minimum Wage has risen by 12.1 per cent in the same period. |
| There's some more stats here, courtesy of the Guardian datablog | There's some more stats here, courtesy of the Guardian datablog |
| 9.35am: Welcome to day two of the Breadline Britain blog. | 9.35am: Welcome to day two of the Breadline Britain blog. |
| Today we'll be continuing our investigation into how ordinary Britons are coping (or not coping) with austerity: shrinking incomes, and rising costs, against a backdrop of cuts to services, and benefits. | Today we'll be continuing our investigation into how ordinary Britons are coping (or not coping) with austerity: shrinking incomes, and rising costs, against a backdrop of cuts to services, and benefits. |
| Our coverage of Britain's "cliff edge" working families – up to 3.6 million of whom are at high risk of falling into poverty – is collected in one place: here. Our stories and data posts reveal who these households are, where they live, and how they are coping. | Our coverage of Britain's "cliff edge" working families – up to 3.6 million of whom are at high risk of falling into poverty – is collected in one place: here. Our stories and data posts reveal who these households are, where they live, and how they are coping. |
| This morning we'll be looking at the causes and consequences of living on the cliff edge. | This morning we'll be looking at the causes and consequences of living on the cliff edge. |
| We'll be welcoming two guests to discuss Breadline Britain in an online chat at lunchtime today. Bruno Rost of Experian (which crunched the "risk of poverty" data) and James Plunkett, secretary to the Commission on Living Standards at the Resolution Foundation, will be answering your questions on a live Q&A between 1pm and 2pm. | |
| We also want to hear your experiences of living on the cliff edge, tell us about your experiences, hopes and fears. Leave comments below the line or email me at: patrick.butler@guardian.co.uk | We also want to hear your experiences of living on the cliff edge, tell us about your experiences, hopes and fears. Leave comments below the line or email me at: patrick.butler@guardian.co.uk |
| Later in the afternoon we'll be launching the second part of Breadline Britain: an investigation into the rising number of children arriving at school hungry. | Later in the afternoon we'll be launching the second part of Breadline Britain: an investigation into the rising number of children arriving at school hungry. |
| Please leave comments below the line or tweet me at @patrickjbutler | Please leave comments below the line or tweet me at @patrickjbutler |