Gulf in poverty over generations

Research by the York-based Joseph Rowntree Foundation (JRF) also found a huge change in the labour market, with big rises in zero hours contracts, part-time work and low-paid self-employment.

Two thirds of jobless people finding work in the past year earned below the Living Wage, while only a fifth of low-paid workers found better paid jobs over the last 10 years, said the report. The study of official government data revealed that the average self-employed worker earns 13 per cent less than they did five years ago.

Pensioner poverty is now at the lowest level on record and the UK’s employment rate is close to a historic high but incomes are lower than 10 years ago, and average wages for full-time male workers have fallen by £1 an hour to £12.90.

In Yorkshire, one-in-four jobseekers’ allowance (JSA) claims leads to a penalty for the claimant, one of the highest rates in the country. The report suggests the figures raise questions over whether JSA is working in the way it should.

The JRF’s chief executive, Julia Unwin, said: “We are concerned that the economic recovery we face will still have so many
people living in poverty. It is a risk, waste and cost we cannot afford: we will never reach our full economic potential with so many people struggling to make ends meet.

“A comprehensive strategy is needed to tackle poverty in the UK. It must tackle the root causes of poverty, such as low pay and the high cost of essentials. This research in particular demonstrates that affordable housing has to be part of the answer to tackling poverty – all main political parties need to focus now on providing more decent, affordable homes for people on low incomes.”

The study also highlights areas with the largest number of families hit by changes to the Government’s housing benefit, dubbed the “bedroom tax” by opponents, are highest where there are the fewest one-bedroom council houses for them to move in to.

The bedroom tax sees housing benefit claimants have their payment reduced if they are judged to be in a house with more bedrooms than they need. Critics argue the penalty is unfair when there are not enough smaller properties for people to move into.

In Yorkshire, one-in-four social housing claimants have had their housing benefit reduced with only the North East and North West regions having a higher rate. Yorkshire also has the second lowest share of council houses with one bedroom at 29 per cent.

At just under one in every 1,000, Yorkshire has one of the highest repossession rates of mortgaged properties but one of the lowest rates in terms of landlords taking back rented properties at 1.4 in every 1,000 compared to 3.8 in the capital. The report shows the proportion of schools in Yorkshire judged “inadequate” has risen from six per cent to nine per cent in the last five years.

Tom MacInnes, of the New Policy Institute, which wrote the report, said: “This report highlights some good news on employment, but earnings and incomes are still lower than five years ago, 
and most people who moved from unemployment into work can only find a low paid job.
The Government has focused its efforts on welfare reform, but tackling poverty needs a wider scope.”