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The UK's Perfect Storm for Increased Poverty

Posted: 15/06/2012 15:03

Being poor in Britain in 2012 is brutal. You are more likely than not to come from a family where people are working, yet still despite your hard work, you cannot afford enough food to eat, or have to choose between heating your house and feeding your kids.

The last few years have seen your life get tougher and tougher. Your wages have fallen, 4.4% in the last year alone, yet your cost of living has risen by 47%. Your library has closed, and the waiting time to see your doctor is months rather than weeks. Childcare services for your children have been cut. Your housing benefit has been cut leaving your family £2000 a year worse off. Your rent is likely to be over half your income. You may be forced to leave your home and community and move far out of town in order to afford somewhere to live. You may well be employed on a 'zero hours' contract, which means your employer can simply send you home if there is not enough work. Yet if you try and leave this job, your benefits will be cut as punishment.

This is brutal Britain in 2012. Gandhi said that a society is judged by how it treats its weak and its frail. By that judgement Britain is fairing very poorly indeed. A report released by Oxfam this week describes the perfect storm of cuts and price rises that poor people are being forced to cope with. The poorest and most vulnerable in our society are being made to bear the brunt of the impact of the financial crisis and recession- targeting those who are least able to take it. The cuts in government services hit the poorest 13 times harder than the richest. They fall mainly on women, three out of four of those affected. Tax rises have hit the poorest harder than the richest too, as the main increase has been VAT. Poor people pay twice as much in VAT as a proportion of their income as rich people do.

At the same time, inflation for poor people is running at almost twice the national rate because of the big increases in the price of food and fuel. Food bills are 30% more expensive for the average family. Families like that of David and Catherine in East London, who have not had the heating on all winter and skip meals to be able to pay their mortgage.

Figures released yesterday show that a quarter of people living below the poverty line come from households where all the adults are working. In the UK there are five unemployed people chasing every job vacancy, yet those lucky enough to get a job have no guarantee of working their way out of poverty. The job they get is likely to be temporary, precarious and hard. Whilst we are told by business leaders that labour inflexibility is the problem in the UK, in fact those in work have less protection than in Mexico.

Yet the richest in society are getting a lot richer, and very quickly indeed. One in four FTSE 100 bosses saw their salaries rise by over 40% last year. Multi-million pound bonuses are still being paid out by the banks despite deep public rage and disgust. Inequality is growing rapidly, and at this rate will soon see the UK return to levels of inequality not seen since Victorian times.

It doesn't have to be this way. It is true that the country is in recession, but that does not mean there are not clear choices that a government can make as to who bears the brunt. Oxfam is part of the campaign for a Robin Hood Tax on the banks for example, which could raise £20 billion a year to invest in fighting poverty in the UK and abroad. Cracking down on tax avoiding companies could also raise billions more, to increase the minimum wage, invest in decent jobs and public services, reduce inequality and get our country going again.

 
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Being poor in Britain in 2012 is brutal. You are more likely than not to come from a family where people are working, yet still despite your hard work, you cannot afford enough food to eat, or have to...
Being poor in Britain in 2012 is brutal. You are more likely than not to come from a family where people are working, yet still despite your hard work, you cannot afford enough food to eat, or have to...
 
 
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11:21 PM on 07/22/2012
truebluetory = k***.......................too true
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HUFFPOST SUPER USER
Nathan0316
TrueBlueTory Age quod agis
03:12 PM on 07/22/2012
Poverty is brutal when you are sleeping rough, eating scraps from bins and covering yourself in rags. The definition of "below the poverty line" in this country is quite, quite different from it's definition in places like North Korea, Afghanistan or Africa. Putting on a cardigan instead of turning on the heating is not poverty, it's a difficulty, nothing more.

Did you know one of the more likely outcomes for poor children here in the UK is obesity? That's right, if you're poor you're more likely to be fat because you eat cheap food and can't afford a gym, not starve to death huddled in a doorway like some kids in real poverty.

Report this issue by all means, but do it realistically, admit poverty here means not having a colour TV in every room, not dying of disease's that could be halted in a week with the right medication.
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HUFFPOST SUPER USER
George McAulay
Delighted to meet you
05:36 AM on 07/22/2012
How times have changed.

Here in Australia things are booming and we have had to put the brakes on to slow the economy a bit to avoid inflation.

We colonial convicts would prefer that you all stayed in your own country rather than you coming out here to whinge and moan and tell us all what we're doing wrong and how stupid we are.

We do know how to run a great Olympics however.
10:12 AM on 07/21/2012
I worked for my local authority in the UK in a library. I saw pay freezes for several years in a row until last year when the lowest paid workers were given a 12% pay cut and the higher paid workers were given a rise. I quit my job and quit the UK. I now live on a small Greek island and make a modest living as a freelance writer. Yeah, it's still a struggle to live, but at least I'm struggling in the sunshine.
12:23 PM on 07/21/2012
I made some poor relationship choices, sold my house in the UK and moved to Ireland to be with my new love. A few years down the line and one journalism course later the relationship ended leaving me homeless. I also live on a tiny Greek Island, it's my third season here and I cannot find work this year, yes things really are that bad. My photojournalism hasn't helped me one iota out here. So well done littlemissdeddi, good for you.
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gundaw
I know nuffinck!
08:19 PM on 07/21/2012
Oh man, hope things are on the up for you soon!
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George McAulay
Delighted to meet you
04:04 PM on 07/08/2012
Thatcher started it and every government of every colour has followed her and failed to protect the 99%

All the more reason to destroy the power of the media mogul who chooses who governs
03:07 PM on 07/01/2012
All the posts I have read in the UK's Huffington Post regarding the political handling of poverty - blaming the poor (children) themselves, having to live in poverty because of mental illness; if one works, one brings home less while seeing the costs of basics such as food rise 47% - mirror almost exactly what is happening in the US, where I live. The only thing I have not read is that while here the Supreme Court declared a corporation to legally be considered a person (!) [WHAT corporation has ethics? The only thing they exist for is to make profits for their shareholders!], Big Oil, Big Money, for all intents and purposes now "own" the U.S. Congress and control the way their (bought) Congressperson votes. Hence our record is just as shameful, if not more so; and I am living it.
11:35 AM on 07/21/2012
What gets me is that corporations are not machines. They are run by people. Brothers, sisters, relatives and friends may well be shareholders of, or work for one. How do we enbolden these people to stand up within the organisation and take on the phsychopaths directing these things? By making them aware of the consequences of their actions. Get them away from their televisions and socialising with them to get the message through. Why are our governments coming down so hard on whistle blowers? Because this process has already begun, that's why.
02:32 AM on 06/27/2012
Please do remember that the last Labour shower let EU citizens come here to work, unlike Germany, France , Italy where restrictions where levied on the number of workers who could come from the new EU entrants...the government at the time callously reckoned on 75,000 coming instead of the 1,000,000 + ......by that one measure Labour insured that a whole generation and a half would never have a chance of working ever.....at least Spain have a decent football team !
09:24 AM on 06/24/2012
Get the statement correct the 50's were a boom time for britain with consumer goods becoming available for the working classes TV's, Cars, bigger houses and decent flats. It was the 30's when kids walked without shoes men stood on street corners because of know work and in that time the very small social allowances were cut by the tories in the times of the depression.
. Historically it s hard to see now but labour and the unions brought the working classes out of indentures, work houses and from the slums of the 18th and 19th century and gave people a descent life - The tories have only ever made nods in the direction of the poor like the liberals (the wigs). The tories cant get away with the past
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03:20 AM on 06/20/2012
This appears to be a global problem -- the rich moneyed investor class have been waging class warfare on the employee class -- and they're winning.
06:04 AM on 06/17/2012
I agree with that statement,the tories wont invest in the working class, i.e Sure start,schools,housing everything from the craddle to the grave, they will hit us at every turn and take away any benifits they can,whether its working class,disabled or pensioners they will squeeze every penny they can out of us.Why? So their pals get richer,they will give them tax redutions,they are taking away the protection the working class have in the work place,they are forcing the working class out of london into less well off areas,they will give their banking buddies billions,but when it comes to the working class like Essex oil refinery,they wont invest anything.But watch out they will meddle with are NHS,WHY? because again their rich buddies can pick up billions in contracts and make huge profits out of sickness and the less fortunate,WHY DO WE LET THESE IDIOTS RUN OUR LIVES?
02:45 PM on 06/16/2012
I am not sure I agree with the statement that poverty is brutal in the UK at the present moment. Clearly the writer was not born in the 1950's/1960's when rationing existed and few had the money for such luxuries as most beneficiaries enjoy in todays Britain or the lifestyle. It is all relative as no onestarves and the few beggars one sees on the streets are either there as a result of their own undoing or just simply arrived on the ferry looking for handouts.
I agree however that pay for leaders of the FTSE has got way out of hand and no longer is it reward for endeavour and success. Many are offered massive bonuses on top of generous emoluments even as we see their share prices decline. All governments make the right noises but the problem persists and I believe will endure.
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Kathryn Elaine Kerbs
12:45 AM on 06/20/2012
Sooo...you think it should get to the level you described (rationing, etc) before there should be a concern?

We live in a world where the top earners own over 40% of the entire planet, while other people literally starve to death. The wealthiest see their riches rise, while the poorest see their meager earnings fall (at the same time cost of living increasing dramatically). There is a huge problem here and it should be nipped in the bud NOW.
10:27 AM on 06/20/2012
Nobody said the world was fair but the threads were not talking about the world but Britain as it is today. Poverty is relative and our most deprived citizens and migrants are infinitely much better off than many around the world, I can assure you. We in Britain still have a social fabric which featherbeds those worse off than the rest. However, the sad fact is many in UK have become accustomed to receiving State handouts and treat them as some sort of entitlement for which they have not worked for and do not intend to:some 300,000 families have never worked nor have any sort of work ethic. We are becoming a nation of whingers and scroungers and my forebears would now be turning in their graves if they were alive to this today. My family worked hard all their lives in a time when children left school to work at 14 in an apprenticeship and provided for their families in for many was a stable and family environment. There were no handouts or bleeding heart liberals as there are today. You sound as if entrepreneurs are both exploitive and owe everyone a living - they do not they are however the catalyst for people to change their lives for the better. You cannot change human nature by simply nipping it in the bud as you so forcefully say.
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novelist2000
veritas non olet
06:21 AM on 06/16/2012
At least they still have a roof. Not that I think it is enough, but it's more than those Americans who live in stormwater drains, in tent clusters in the woodlands, or under the overpasses. In the last decades, the world, incl. Britain has followed the example of America through adopting her principles and policies. No discussion there when you looked at the Moscow alternative. Now that the world has changed we should be allowed to say the American example is no longer worth following. As long as it is taboo to spell it out, no change I guess.

A Robin Hood Tax on financial transactions is really only clawing back what we have lost through privatisations. Governments used to have assetts and businesses which could keep things afloat. Such a tax could also make it possible to monitor financial transactions, see where anomalies develop and intervention is needed.

I do not expect to see the end of it when I read the unemployment figures from Britain, the US, Spain, Egypt, Tunesia etc. I have serious doubts whether these millions or maybe even a billion or two, can ever be integrated into the economies. Maybe Paul Ehrlich was right and this is the first phase of the population bomb exploding. It can be no coincidence that the one country on earth with stable population like Germany is supposed to rescue Europe, and according to Obama America as well. Won't happen; applying rules from old textbooks looks more ridiculous every day.
02:16 PM on 06/19/2012
America is a disparate nation ...society isn't part of the American way ,,,the strong win win win
dog eat dog... the poor are poor because they want to be so
so says the YANKIE
01:02 AM on 06/16/2012
Good article by someone who appears to know what he is talking about not some idle tax avoiding rich person determined to make the poor pay for being poor.
05:41 PM on 06/15/2012
This is nonsense, I was brought up in the 1950s, my mother had three sons, she did not have child allowance for any of us. I still have my ration book, we were poor, but my parents were responsible. My father was in work, not earning much, but we rented a small flat in London. My mother did some part time housework, she cooked all our meals, no take away pizzas which I see being delivered to mothers on the local council estate. Mothers who smoke, and drink as well.
We went without a few luxuries like color TV, a telephone, holidays abroad, but we were well fed, and happy. Today's poor families waste money on take away food, drink, smoking, holidays, and they spend very little time being parents. their children are running the streets at all hours, and there is no home life, no sit down meals, no time spent teaching children to read, going to museums, all free.
I feel sorry for todays children, but the parents need a few lessons in life.
07:03 PM on 06/15/2012
You can add contracts for mobiles phones, sky/virgin TV. Since the recession started we have had an increase in betting shops in this area. New nail shops and hairdressers/barbers have opened. They are always full of customers, and this is the poor end of Croydon with high unemployment. The same people are complaining that they do noty get enough benefits. To my mind if they can afford this life style on benefits they are getting too much.
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vividrick
I came, I saw...I had a cup of tea!
01:00 PM on 06/16/2012
I work in a, what maybe classed as, a lower income area. And I think it's not all down to the people in the ways you suggest. You're right, there seems to be an incredible amount of betting shops now opened, that's there to exploit the vulnerability of the people, as are the amount of takeaways, and shops selling cheap booze etc. The will power amongst a lot lof people at bottom end of ladder isn't as strong as the society buit up around them caters for them as opposed to help them.
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vividrick
I came, I saw...I had a cup of tea!
12:49 PM on 06/16/2012
Peter Hitchens was coming with all that on Question Time recently. I think it's important not to make general sweeping statements like that, it was a much different time in the 50's.
08:44 AM on 06/20/2012
Yes the 1950s was a different time, many people were really poor, child allowance had not come in, the NHS has just started and I was the first in my family to be born in a hospital. In those days being a mother was taken seriously, no expensive take aways, a mother had to learn to prepare and cook food.
Everyone has too much money these days, and no responsibility, kids have everything given to them, so they don't respect anything.
04:58 PM on 06/15/2012
would someone then please point these facts out to IDS who seems to think there is a bottomless pit of jobs for everyone.