"The rise in pensioner poverty is concerning, and we think it is being driven in part by increased housing costs, particularly for those in rented accommodation...
"With around 40% of pensioners in poverty living in rented (both private and social) properties, they risk being pulled further into poverty if rents continue to increase...
"In real terms, housing costs for both social and privately rented properties have risen considerably since 1994/5. As a result, over a third of pensioners who live in rented accommodation are now in poverty, some 800,000 people..."
"Rents have increased across all regions during the pandemic, and is likely to continue to pull more pensioners into poverty." ⬆️🏠
Our next question comes from Gary Craig:
'Many of those in work are in the gig economy, low pay, insecure employment, no protection and almost certainly in poverty. Is it possible to provide data which separates out this group from those in work generally?'
"We know that workers on zero-hours and other temporary contracts were 4 times more likely to lose their job than those on permanent contracts during Covid-19 👇 ... jrf.org.uk/report/what-fi…
"We also know that these workers were more likely to experience multiple employment shocks during the pandemic than workers on permanent contracts." 📜 jrf.org.uk/report/people-…
Our next question comes from Matthew Jones 👇
'Notwithstanding the importance of speaking to people about their experiences, could you identify a small number of metrics we could use to show the scale of poverty at a local level?'
"Within this report (#UKPoverty2022) we don’t include analysis specifically on refugees. Last year we published a report on structural racism in housing and challenges faced by those with no recourse to public funds, here...👇 jrf.org.uk/report/whats-c…
"There are sources of data that can provide insight into outcomes for refugees, for example the Scottish Government publishes figures on the number of asylum seekers claiming section 95 support due to risk of destitution, here 👇"
"The falling employment rate for those aged 50+ is concerning. As this has most likely been an impact of Covid there is the possibility that it will pick up again in the near future...
"However, even before Covid the 50+ were being failed by the labour market. JRF did address this in this thread, containing recommendations for what Government and businesses can do to improve the situation 👇...
"At JRF, we fully understand the impact age can have on the likelihood of being in poverty and it is one of the key demographics we focus on. We will always work to ensure the story of all people is told and understood."
Our next question comes from Mike Tighe 👇
'Is the increased inflation rate here for the long haul? Inflation feels like it is even higher than the national figures reported today suggest and many price increases seem to have hit ‘all at once’ in the last few months.'
"While we don’t yet know the long-term outlook for inflation, we know that with inflation set to continue rising through the winter and into spring, the rising costs of living will be felt by everyone, hitting low-income families especially hard...
"This is outlined in more detail in our blog here 👇...
"This is something that has been much discussed this week. At the moment there is little data looking at the different impacts of inflation by income level.
"This chart shows that low income households, particularly those with children, spend a higher proportion of their budget on unavoidable costs such as housing, energy and food. This leaves a smaller margin for when costs do increase." jrf.org.uk/data/household…
Our next question is from Shirley Widdop, who is a member of our Grass Roots Poverty Action Group:
'Is there any scope to include the impact of the Poverty Premium, e.g. the additional costs of accessing essential goods & services for those in poverty, in future reports?'
"To support families through the coming months, we’ve called for an immediate emergency payment for people on the lowest incomes... theguardian.com/money/2022/jan…
"In relation to housing costs; solutions would include relinking LHA to local rents, scrapping the ‘removal of the spare room subsidy’ and the benefit cap and, over the longer term, increasing the supply of homes for social rent...
"You may also be interested in the report we published last year which describes the policy black hole faced by low-income private renting households 👇." jrf.org.uk/report/renters…
"Research shows that women have been more impacted by the welfare reform changes - is there evidence of women being more impacted (aside from the figures on lone parents who are mostly women)?"
"Women typically experience higher poverty than men, and whilst it is true that lone parents (of whom over 90% are women) are particularly affected, this is true for all women...
"Women are 50% more likely than men to be either economically inactive or employed part-time and more likely to rely on benefits to support them. As more than half of #UniversalCredit claimants are women, they will feel more keenly the effects of any welfare reforms."
"Within the dataset we use, shared owners are categorized as homeowners. We didn’t split these out for the analysis in this report (#UKPoverty2022)...
"We’ve run some ad hoc analysis, and for households buying with a mortgage who also pay rent (i.e. most likely shared owners) the poverty rate for 2019/20 is 21%, which is double the rate for all households buying with a mortgage...
"However, this is the before factoring in the immense financial pressure (and emotional turmoil) many shared owners and leaseholders will have experienced as a result of the cladding crisis, which has trapped too many people in impossible situations...
"In the affordability briefing we published last year, we identified that shared ownership would be unaffordable for the majority of low-income households who current rent privately.
"#UKPoverty2022 focuses on the state of poverty in the UK so comparisons with other countries are not pertinent to this report. However, we do consider what is happening elsewhere if it can be helpful...
"For example, in our briefing that examined the adequacy of benefits, we compare benefits as income replacement amongst OECD countries 👇." jrf.org.uk/report/our-soc…
Our next question is a pertinent one:
"Does the report make it clear that the complexity of many compounding factors deepens poverty? I think part of the problem is focusing on stats and not hearing enough about complex lived experiences."
"Our #UKPoverty2022 report breaks down analysis across the main drivers and experiences of poverty, although of course it is often the combination of complex compounding factors that drives and deepens poverty..."
"We developed this report alongside the Grassroots Poverty Action Group, a group of people with direct experience of poverty, and together we published a series of blogs on their experiences of poverty...
"Colin Ridgway wrote about his experience of the impact of the Universal Credit cut and rising prices during winter here 👇... jrf.org.uk/blog/rising-pr…
"Members of the group wrote about their experiences of and solutions to the cost-of-living crisis here 👇... jrf.org.uk/blog/take-acti…
"And others described how systems need to be designed to tackle stigma and prejudices 👇." jrf.org.uk/blog/how-we-ca…
Our next question comes from Carrick Brown 👇
'I welcome the focus on child poverty - and the focus on health inequalities. Are there long term studies quoted within this report that show poverty as a causation of childhood disability and the financial/social impacts of this?'
"We’ve not broken down further by characteristics within tenures, however we have broken down poverty rates by a wide range of different demographics. This thread summarizes the headlines 👇."
"These are the families who are going to be hit disproportionately by inflation that will continue to increase during the winter and into spring and the resulting increase in the cost of living... jrf.org.uk/blog/inflation…
"In April, benefits will be uprated by 3.1%, closing the gap somewhat, but not enough as it is much lower than the current inflation rate of 5.4%, which is forecast to rise further when the energy price cap rises in April...
"Some of the hit will be mitigated by working families receiving #UniversalCredit, who will benefit from changes to the taper and work allowance announced in the November budget, but even here, the rising cost of essentials (particularly energy costs) will outweigh the gain..."
"Families relying on the benefits replaced by #UniversalCredit have received no additional support, so will find the increased costs of living even harder to bear, while those on Universal Credit who are out of work will have seen the full loss of the £20 a week uplift..."
"We need a poverty fighting social security system that is strengthened to at a minimum provide for families’ basic needs and allow them to live with dignity." jrf.org.uk/report/our-soc…
Thanks for following and taking part in our #AskAnAnalyst Q&A.
Want to dive deeper into the data behind the trends in poverty?
You can find the latest data on the nature and scale of poverty in the UK from our #UKPoverty2022 report on our website 👇 jrf.org.uk/data
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This year’s #UKPoverty2022 report is designed to act as the ultimate reference document for the complete picture of poverty across all its characteristics and impacts.
Here, JRF analysts share the latest data from the areas of the report they have worked on
The findings of our latest report paint a stark picture of the state of the nation going into the pandemic, with rising child and pensioner poverty, and very high poverty rates for larger families and single-parent families, as well as Bangladeshi, Pakistani and Black families 📈
While we don’t yet have the official poverty data for the pandemic period, we know that the impacts of the pandemic were very uneven.
During the pandemic, people on the lowest incomes were most likely to see their earnings reduced if they were working and to get into debt 💷
Our state of the nation report into poverty in the UK reveals that 1.8 million children are growing up in very deep poverty, meaning family incomes are so low that they are completely inadequate to cover the basics.
Large numbers of children were living on low incomes for prolonged periods of time in the years running up the pandemic.
For many young children, this persistence of poverty means going without essentials is all they have ever known or can remember
📈Our analysis shows that households able to work the most hours gain the most from the National Living Wage rising and changes to the #UniversalCredit taper and work allowance.
❌However, rising living costs wipe out most of these gains
A couple with two young children, with one parent working full-time and one working part-time will be better off by £7 per week