300,000 more people could be living in “absolute poverty” in the UK than previously thought, according to a shocking new report.
Research from the Institute for Fiscal Studies (IFS) found that poorer households have experienced larger increases in living costs than richer households, mainly due to rises in food and energy prices.
> Well – who’d have guessed ?
IFS say that taking into account “differential inflation” since 2010-11, the number of people recorded as being in absolute poverty would be 300,000 higher in 2013-14 than official figures suggest.
Between 2002-03 and 2013-14 the poorest 20% of households saw prices increase on the typical goods they purchase by 50%, compared to richest 20% who saw prices rise by 43%.
According to the IFS, poorer households devote more of their income on things like food and energy, whereas the richest 20% of British society spend more on areas such as motoring and mortgages.
On average, the prices of goods purchased by low-income households have risen more quickly than those more commonly purchased by more affluent households. This is particularly apparent in the ‘wake’ of the 2008 recession, say IFS.
The government uses two different methods of measuring poverty in the UK. The first is ‘absolute poverty’, which is a measure of the number of people thought of as being below a poverty line, before housing costs, calculated using the Retail Price Index (RPI). Through this measure we can confidently say that 18.8% of individuals were living in absolute poverty in 2012-13, before housing costs.
Another method used by the government is relative poverty, which calculates the number of households earning less that 60% of the national median average. Using this method we can calculate that 15.4% of the UK population were living in ‘relative poverty’ (before housing costs) in 2012-13.
The IFS study also accounts for different inflation pressures felt by households depending on how they spend their income – a measurement not included in official poverty statistics. This new measurement found that absolute poverty is 0.5% higher in 2013/14 than standard poverty measures- the equivalent of 300,000 more households.
However, the IFS say this trend has not been consistent over earlier years, adding that “this new definition had been at times higher and at times lower”.
Peter Levell, a Research Economist at IFS said:
“In recent years, lower-income households have tended to see bigger increases in their cost of living than have better off households.
“Official poverty measures do not take this into account and hence have arguably understated recent increases in absolute poverty by a small but not insignificant margin.”
Rachel Reeves MP, Labour’s Shadow Work and Pensions Secretary, said:
“This report is further evidence of the huge pressures which families are facing as a result of David Cameron’s cost-of-living crisis.
“The Government’s failure to tackle soaring energy, childcare bills and low wages has led to millions struggling to get by. Earlier in the year the IFS said child poverty is set to rise 900,000 by 2020.
“A Labour Government will do more to help families who are struggling to make ends meet so that every child gets the best start in life. We will freeze energy prices, raise the minimum wage, extend free childcare provision, scrap the Bedroom Tax and introduce a Compulsory Jobs Guarantee to get people off benefits and into work.”
> But getting people off benefits and into work doesn’t mean those people will necesserily be any better off. Maybe Labour should really be thinking about capping rents, energy, public transport and food prices ? But of course they won’t really change anything much, they’ve bought into the system too far to do that.
Source – Welfare Weekly, 05 Nov 2014
The Coalition government has finally put its cards on the table, calling for the completion of a ‘free trade’ agreement with the United States of America that will end democracy as we know it today.
Do you think this statement is needlessly hyperbolic? In fact, it probably does not make the point strongly enough!
You will lose the ability to affect government policy – particularly on the National Health Service; after the Health and Social Care Act, the trade agreement would put every decision relating to its work on a commercial footing. The rights of transnational corporations would become the priority, health would become primarily a trade issue and your personal well-being would be of no consequence whatsoever.
Profit will rule.
Also threatened would be any other public service that has been privatised by this and previous governments, along with any that are privatised in the future; all would fall…
View original post 1,316 more words
A piece from RT.com by Tony Gosling, which pretty accurately sums up the current situation for many in “Great” Britain today.
Not satisfied with their seventh home, brace of sports cars and servants, the rich are paying Tory politicians, press and the City to grind the faces of Britain’s poor into the dirt.
Millions of hardworking families can no longer afford a social life, shoes for their children, to go swimming or to the cinema.
A depraved Sheriff of Nottingham is ruling Britain. While the superrich loan shark 0.001 percent are given the red carpet treatment to loot the family silver, Sheriff Cameron and his Bullingdon Club bullies are putting all the blame at the door of whom? The destitute and disabled.
Past recessions and the desire of businessmen to drive down wages and conditions have swelled the numbers of the unemployed in Britain to around 3 million. Since the post-World War II Labour Party ‘National Insurance’ and ‘Social Security’ laws, these jobless have always been given enough by the government to live on. But those days are over under this sheriff, the poor are being lashed.
Including government help with inflated housing costs, Britain has around 25 percent of the population dependent on various welfare payments. Cameron’s wheeze is an online ‘Universal Credit’ scheme to lump all these payments into one. After several hiccoughs and cost overruns the latest 140 million pounds (US$225 million) written off from this pilotless project just this week beggars belief. It could have provided a year of low paid public sector jobs for around 10,000 people languishing on the dole and saved the taxpayer a cool 300 million pounds altogether.
It has been left to the poorest in society, struggling after being stripped of their statutory legal aid, to challenge these attacks in the courts. Last month forced laborer Cait Reilly won a Supreme Court challenge and her slavery scheme was ruled unlawful. Now this week government abolition of ‘Independent Living Allowance’ for disabled people has also proved Sheriff Cameron and his poor-bashing henchman Iain Duncan-Smith have been breaking the law.
This week figures emerged too that a staggering 700,000 of Britain’s poorest unwaged, while denied work, have had their subsistence payments removed for not complying with a privatized scheme called the ‘Work Programme’, designed to bully them into low paid work.
Undercover recording back in 2012 revealed privatized employment staff being trained to regard the jobless as not deserving anything to live on at all. Job advisers were told by training staff to regard clients as ‘benefit scrounging scum’.
My own experience on this scheme verifies consistent bullying tactics are being used daily on the thousands of the weakest in society. The complaint system which I tried to use turned out to be a crooked sham, but the private company running my scheme, Seetec, still stands to be rewarded with approximately 15,000 pounds of taxpayers money for doing nothing to help me find work at all.
While on the program I witnessed one unwashed, educationally subnormal young man of about 25 arrive for his interview in clothes that looked as if they hadn’t been changed in weeks. Just before he sat down, his ‘job adviser’ yelled at him in front of the whole open plan office, “Back again are you? You said you would. Why haven’t you got a job yet?!”
The young man visibly shrank back from the chair as if he was preparing himself to receive a physical punch, his eyes were darting around as if for a safe place to run to, or perhaps someone he could trust.
The young woman who had stopped talking to me, my adviser, visibly cringed. Not saying anything she made it clear to me she didn’t approve of her colleague’s behavior – the cruelty was naked and inexcusable. She left the job shortly afterwards.
Before I left that day another client told me the police had been called to deal with a fight earlier, but as he was telling me the story I had to get up and move away. Another client started swinging his right arm back and forth, remonstrating about how he had been practicing throwing hand axes, grinding his teeth as he described what a mess they made of someone you didn’t like when lodged in their back.
On the way out that final day I got chatting in the lift to a 50-year-oldish woman who told me she had a degenerative nervous disease. Government contractors ‘Work Capability Assessment’ company, ATOS had certified her ‘fit for work’ so she had to struggle into Bristol City center three times a week to apply for jobs she knew – in competition with able bodied young people and migrants – she could never get.
Since Britain has enjoyed such high living standards and maintains its position as one of the wealthiest handful of countries in the world, we are feeling the ‘pinch’. The sense of injustice and moral outrage has become palpable on the BBC TV’s weekly ‘Question Time’ which nowadays breaks out into angry exchanges despite the producers largely keeping the socialist left off the panels.
It’s a policy designed to start a second civil war, threatening ordinary people with starvation, prison or eviction seems to be all Britain’s coalition government can think of to ‘motivate’ the populace.
Just as Switzerland’s wicked Gessler had his William Tell and France’s Villefort family had their Count of Monte Cristo, quietly Britons are beginning to see Robin Hood’s Merry Men coming together.
The market’s nightmare vision is for a Big Brother technocrat and authoritarian regime. But what Britain and the rest of the NATO zone really needs is a reasserting of the Universal Declaration of Human rights, a united front for an updated set of universal social standards with no sinister strings attached.
Switzerland and Cyprus are now proposing one excellent solution, the basic income, but go one stage further and we can guarantee citizens for free what that basic income is supposed to provide.
As its first priority the state should abolish the threat of eviction, instead making the dignity and subsistence the order of the day. Water, food, healthcare, energy and a rent-free roof over every head. Above and beyond that people will have plenty of time to work and better themselves, with taxes kicking in as families pursue more luxurious lifestyles.
A nationalized banking system that goes hand in hand with good government would force the moneychangers out of the temple, to serve the people once more. We’d have no more of their weasel words: ‘There’s not enough money for that!”
Original article – http://rt.com/op-edge/britain-poor-denied-work-425/
North Tyneside Council has agreed a motion to block payday loan companies websites from its computers – PCs used by all council staff and those available to the public in libraries and Customer First centres – and to prevent such companies setting up business in council-owned commercial property.
The motion also called on the government to legislate and effectively regulate payday lenders (dont hold your breath on that one…).
Mayor Norma Redfearn said: “With the soaring costs of energy and food bills, cuts in benefits and a freeze on wages it’s not suprising that more and more people feel they have no option but to take desperate measures to meet their bills.
“Our research shows that people are now borrowing on average around 326 pounds a month from these credit companies. The interest they charge is absolutely scandalous, so it’s no wonder that many people are caught in a spiral of debt and taking out more loans just to get by.
“This council is taking a significant first step by agreeing this motion, and I can guarantee there will be more action to come.”
No matter how bad things get, there will always be someone waiting to take advantage. It’s to be hoped that other councils might follow this example, as well as promoting Credit Unions as an alternative.