State of the nation report: poverty, worklessness and
State of the nation report: poverty, worklessness and welfare dependency in the UK Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK Foreword by the Secretary of State for Work and Pensions AddressingpovertyandinequalityinBritainis attheheartofouragendaforgovernment.It isunacceptablethat,inoneofthewealthiest nationsintheworld,millionsofadults andchildrenarelivinginpoverty.Whole communitiesareexistingatthemarginsof society,trappedindependencyandunableto progress.Intheseareasaspirationandsocial mobilitydisappear,leavingdisadvantagedchildren tobecomedisadvantagedadults. ThisGovernmentrecognisesthattackling theseissueswillrequirecross-departmental action.ThatiswhywehaveestablishedaSocial JusticeCabinetCommittee.AsChairmanofthe Committee,Iwillbechampioninganapproachto povertythatrecognisesitsmultifacetednature. Wewilltacklethefactorsthattrappeoplein povertyandtherebybreaktheintergenerational cycleofdisadvantage.Ourapproachwilldeliver sustainableprogress. Overthepast13yearswehaveseenmoreand moremoneyspentonthebenefitssysteminan attempttomovepeoplefrombelowthe60% povertythresholdtoaboveit.Expenditureon child-relatedbenefitsalonehasalmostdoubled. Yetdespitethisexpenditure,thefiguresinthis documentshowthatthisapproachisfailing. Attheheartofthisfightagainstpovertymust bework.Iwillworktodeliverradicalreforms tothewelfaresystem.Ourcoregoalwillbeto improvethequalityoflifefortheworstoff–for pensioners,childrenandworking-ageadults. Incomeinequalityisatitshighestsincerecords began;millionsofpeoplearesimplyparkedon benefitswithlittlehopeofeverprogressing intowork;thereare800,000moreworkingageadultsinpovertythanin1998/99;andhigh levelsoffamilybreakdown,educationalfailure, addictionandhealthinequalityarehavinga severeimpactonoutcomesforbothadultsand children. Onlybyreformingthewelfaresystem,including benefitsreform,willwetakewelfareintothe 21stcentury. IainDuncanSmith SecretaryofStateforWorkandPensions 3 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK Contents Executivesummary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Chapter1 Incomepoverty,inequalityandsocialimmobility . . . . . . . . . . . . . . . . . . . . . . . . . 14 Chapter2 Worklessness:unemploymentandinactivity. . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 Chapter3 Welfaredependency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33 Chapter4 Poorhealthandeducationaldisadvantage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40 Chapter5 Familiesandcommunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49 Chapter6 Multipledisadvantage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59 SomeofthedataoutlinedinthisdocumentappliesacrosstheUK.However,someofthe figuresapplyto Englandonly,orEnglandandWalesonly.Wherethisisthecaseithasbeennoted. Manyaspectsofpolicyhighlightedinthedocumentaredevolved,indifferingsettlements,to the administrationsinNorthernIreland,ScotlandandWales.ItisthebenefitofdevolutionthattheDevolved Administrationscantailortheirpoliciesandthusdeliverpublicservicestomeetthespecificneedsoftheir citizens. TheGovernmentandtheDevolvedAdministrationswillcontinuetoworkcloselytogethertobuildamore prosperous,stronger,fairerUK,whilerecognisingthateachhasparticularandvarying responsibilities. 5 6 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK Executive summary The Coalition Government is committed to building a fairer society, where opportunity is more equally distributed. In Britain today, too many people are held back because of poverty, family background and other factors. We will dismantle these barriers and take action to ensure that everyone has the best possible chance to fulfil their potential and leave poverty behind. Thisreportsetsoutacomprehensiveassessment ofpovertyintheUKatthestartofthenew Government,establishingaclear‘stateofthe nation’overviewthatwillbeusedtoinform policydecisionsinthemonthsandyearsahead astheGovernmentadvancesitsaimsoftackling povertyandimprovinglifechances. TheCoalitionGovernmentrecognisesthat povertyisamultifacetedandwide-reaching problem.Thisreportthereforeincludesabroad rangeofpovertyanddeprivationindicators, includingincomepoverty,indebtedness, unemployment,educationalandhealth inequalities,familystructureandcommunity breakdown. Takentogether,thesemeasurementssetouta clearpictureofpovertyintheUK.Theyshow thatwhilesomeprogresshasbeenmadein someareas,acrossawiderangeofareasthe government’sperformanceintacklingpoverty andinequalityhasstalledordeteriorated.Thisis despitespendingbillionsofpoundsonstate-led programmes.Asaresult,povertyandinequality remainadeeplyentrenchedproblemthatblights manyfamiliesandcommunitiesacrosstheUK. Keystatistics • Newanalysisshowsthat5.3millionpeoplein theUKsufferfrommultipledisadvantage.1 1 • Newanalysisshowsthat1.4millionpeoplein theUKhavebeenonanout-of-workbenefit fornineormoreofthelast10years.2 • Newanalysisshowsthatanestimated670,000 householdsintheUKareeligibleforbenefits andtaxcreditsofover£15,600peryear.3 • IncomeinequalityintheUKisnowatits highestlevelsincecomparablestatisticsbegan in1961. • SocialmobilityinBritainis,intermsofsons’ earningsrelativetotheirfathers’,worsethan intheUSA,France,Germany,Spain,Sweden, Canada,FinlandandDenmark. • Ahigherproportionofchildrengrowupin worklesshouseholdsintheUKthaninalmost anyotherEUcountry. • Ahigherproportionofyoungpeopleinthe UKarenotinwork,educationortraining thaninalmostanyotherEUcountry. • Peoplelivinginthepoorestneighbourhoods inEnglandwill,onaverage,diesevenyears earlierthanpeoplelivingintherichest neighbourhoods. • Healthinequalities,asproxiedbylife SocialExclusionTaskForceandStrategyUnitinternalresearch. DepartmentforWorkandPensions,internalresearch. 3 DepartmentforWorkandPensions,internalestimates. 2 expectancyatbirth,arehighernowthanthey wereinthe1970s. Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK • Thegapineducationalattainmentbetween incomepovertyasachildisassociatedwith increasedriskofeducationalunder-achievement andunemploymentlaterinlife.Parenting, homeenvironmentandschoolexperiencemay beasinfluentialindetermininganindividual’s trajectoryinlifeashouseholdincomein childhood.Nevertheless,itisclearthatin2010 lowincomeremainsabarriertomanypeoplein theUK.Forexample,whileonsomemeasures relativeincomepovertyhasfallen(particularly forpensionersandchildren): childrenfromrichandpoorbackgrounds remainspersistentlyhigh. • Thegapinincomebetweenthemiddleand thebottomhasnotimprovedinthepast decadeandonsomemeasuresappearsto haveincreased. Income poverty, inequality and indebtedness In2010,incomepovertyandinequalityremain amajorproblemintheUK.Severepoverty– definedasahouseholdincomelowerthan40% ofthemedianhouseholdincome–hasincreased inrecentyears.Inaddition,relativepoverty– definedasahouseholdincomelowerthan60% ofthemedianhouseholdincome–hasalso increasedsince1998/99amongsingleadultsand coupleswithoutchildren. Lowincomenotonlyresultsinlowerstandards oflivingbutalsoaffectspeople’slifechances andopportunities.Forexample,experiencing • severepovertyhasincreasedsince2004/05; • almostoneintenpeople(8%)livein persistentpoverty,measuredasspending threeyearsorlongeroutofthepastfour yearsinrelativepoverty; • theproportionofthepopulationlivingin relativepovertyishigherintheUKthanin manyotherEuropeancountries,including France,GermanyandPortugal;and • overthepastdecade,personaldebtreached recordlevels–andUKhouseholddebtis amongthehighestofanydevelopedcountry. Figure 1: The UK’s relative poverty rate is high compared with other European countries % of households below 60% of equivalised median income 20% 15% 10% 5% Source: Eurostat, 2007 s rla nd en N et he Sw ed ce an Fr an d y nl Fi 15 an m G er EU 27 EU l Po rtu ga K U ly Ita Sp ai n 0% 7 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK Riskofpovertyisunevenlyspreadinterms ofregion,ethnicity,householdstructureand disabilitystatus.Overhalf(52%)ofPakistanis andBangladeshisareinrelativepoverty,while childrenlivinginfamilieswithatleastone disabledmemberhavea29%chanceoflivingin poverty,comparedwith20%forthoselivingin familieswithnodisabledmember.Theadditional costsassociatedwithdisabilitymeanthata narrowfocusonincomesdoesnotfullycapture thelevelsofdisadvantageexperienced. Thereisalsoevidenceofgrowingincome inequalityintheUK.In2008/09,forthesecond consecutiveyear,incomeinequalitymeasured bytheGinicoefficientwasatitshighestlevel sincecomparablestatisticsbeganin1961,andthe UKranksabovetheOrganisationforEconomic Co-operationandDevelopment(OECD) average.IntheUKtoday,wealthinequalityis evenmorepronouncedthanincomeinequality. Accordingtothelatestdata,thebottomthird ofthewealthdistributionownsonly3%oftotal wealthintheUK. Onsomemeasures,socialmobilityalsoappears tohavestalledinrecentyears.Thereisahigher correlationbetweenindividualandparental earningsinBritainthaninGermany,Franceand theUSA,meaningthatfamilybackgroundisa biggerfactorindetermininglifechancesinBritain thaninmanycomparablecountries(Figure2). Figure 2: Britain has a poor record of social mobility, as indicated by the extent to which sons’ earnings levels reflect those of their fathers 0.5 Correlation between fathers’ and sons’ earnings 8 0.4 0.3 0.2 0.1 0.0 Britain USA France Germany Spain Sweden Canada Finland Denmark Source: OECD (2010), Economic Policy Reforms: Going For Growth, Chapter 5 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK Figure 3: The UK ranks poorly against comparator countries in key statistics % children in jobless households (European comparator) 28/28 % adults in jobless households (European comparator) 25/27 % young people not in education, employment or training (OECD comparator) 22/24 Source: Eurostat, People living in jobless households, 2008 data; and OECD Education at a Glance 2008, 2007 data Note: Low numbers suggest poor performance against indicators. Base varies depending on the country sample Worklessness In2010,unemploymentandinactivityisprevalent inmanyUKcommunities.Ahigherproportionof childrenintheUKliveinhouseholdswhereno oneworksthaninalmostanyotherEUcountry. Worklesshouseholdsaresignificantlymorelikely toexperiencepovertyandseverepovertythan householdsinwhichatleastoneadultisinwork. Forexample,childrenlivingincouplehouseholds wherenoadultworkshaveovera64%chanceof livinginpoverty,comparedwithjusta1%chance forthoselivinginahouseholdwithtwoadults infull-timework.Evidencealsosuggeststhat childrengrowingupwithoutaworkingadultmay belesslikelytoworkthemselvesthanchildren growingupinhouseholdswheresomeone isinwork.Thishighlightstheimportanceof measuringemploymentatahouseholdaswellas anindividuallevel. Keystatistics • Morethanoneinfourworking-ageadults– 10.6millionpeople–intheUKdonotwork. • TheUKhasoneofthehighestratesof worklesshouseholdsintheEU,with4.8million working-agepeoplelivinginahouseholdin whichnooneofworking-ageisinwork. • TheUKhasoneofthehighestratesof childrenlivinginworklesshouseholdsinthe EU,with1.9 millionchildrenlivinginworkless households(Figure3). • Over2.5millionpeopleareunemployed, includingaround940,00016–24-yearolds,upfromaround650,000in1997.The unemploymentratefor16–17-year-oldsis now35%. • Certaingroupsareparticularlylikelytobeout ofwork.Forexample,overathirdofBlack Africanhouseholdsarenotinwork,while overhalfofdisabledpeoplearenotinwork. 9 10 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK Figure 4: Annual expenditure on working-age benefits is high compared with many other areas of government expenditure 100 90 80 70 £ billion 60 50 40 30 20 10 0 NHS Working Schools Defence Transport Justice Overseas Energy age budget aid and climate benefits change Source: HMT, 2009, Public Expenditure Statistical Publications (PESA); Department for Work and Pensions. All figures for 2009/10 Welfare dependency In2010,welfaredependencyremainsasignificant problemintheUK.Fortoomanypeople,the welfaresystemdoesnotprovidesufficient incentivestowork,andpeopleonbenefitsor lowincomesfacesignificantbarrierstoworking theirwayoutofpoverty. Keystatistics • Atleast12millionworking-agehouseholds receivebenefitseachweek(includingtax creditsandChildBenefit)atacostofaround £85billionperannum(Figure4). • Around2.6millionpeoplehavespentatleast halfofthelasttenyearsonsomeformofoutof-workbenefit. • Thenumberofworking-ageadultsclaiming DisabilityLivingAllowancehasrisenbyover 40%inthepastdecade–from1.2millionin 1997to1.8millionin2009. • Thepoorest20%ofhouseholdsreceiveon average58%oftheirincomefromthestate. • Anestimated670,000householdsintheUK areeligibleforbenefitsandtaxcreditsofover £15,600peryear. • Somelow-incomefamilieskeepaslittleas five penceineveryadditionalpoundearned (notincludingadditionalin-workcosts),while 70,000familiesfacedeductionratesover90%. Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK 11 Figure 5: Obesity and behaviours that put health at risk are prevalent in England (percentage of adult population) Obesity Smoking 25% 21% Hazardous alcohol consumption 24% Source: The Health and Social Care Information Centre (2009) Social Care Statistics Health disadvantage In2010,thehealthgapintheUKbetween richandpoorremainswide.Healthnotonly influencesqualityoflifedirectly,butitcan affecttheextenttowhichpeopleareableto participateinthelabourmarketandwider society.IntheUKtoday,toomanypeople’s healthisdeterminedbytheirwealth,andthere aretoomanypeoplewhoexperiencepoor physicalandmentalhealth: • InEngland,peoplelivinginthepoorest neighbourhoodswill,onaverage,dieseven yearsearlierthanpeoplelivingintherichest neighbourhoods. • Disabledpeoplearemorelikelytolivein poverty,tobeworklessandtohavelower skillsthannon-disabledpeople.Among disabledpeople,32%reportdifficultiesin accessinggoodsandservices,and22%donot havefrequentchoiceandcontrolovertheir lives. • Healthinequalities,asproxiedbylife expectancyatbirth,arenowhigherthanthey wereinthe1970s. ItisalsoclearthattheUKcontinuestoexhibit highratesofobesityandriskyhealthbehaviours: • Aquarter(25%)ofadultsintheUKare obese,upfrom15%in1993.Obesityrates intheUKaresignificantlyhigherthanthe OECDaverage,andthosefromlowersocioeconomicgroupsaremorelikelytobeobese thantherestofthepopulation. • Some2.4millionadultsregularlydrinkmore thandoubletheNHSguidelines.British teenagersalsodrinkmoreandearlierthan theirEuropeancounterparts. • Some21%ofadultsstillsmoke,whileover4% aredependentondrugsotherthanalcohol. • Thereisacorrelationbetweenyouth offendingandalcoholconsumptionanddrug use. 12 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK Educational disadvantage In2010,thegapineducationalattainment betweenchildrenfromwealthyanddeprived backgroundsremainshigh.AchildintheUK eligibleforfreeschoolmealsishalfaslikelyto achievefiveormoreGSCEsatgradeA*–C, includingEnglishandmaths,asachildfroma wealthierbackground.Inaddition,toomany otherpeopleintheUKareheldbackbecauseof alackofskills. Keystatistics • Some10%oftheworking-agepopulation havenoqualifications,whichrisesto24%for disabledadults. breakdowniscorrelatedwithmentalhealth problems,forexample,whilechildrenwho experienceparentalseparationappeartosuffer onarangeofeducationalandbehavioural outcomescomparedwiththosewhodonot. Keystatistics • TheUKhasthehighestrateofteenbirthsin theEU. • TheUKhasoneofthehighestproportionsof loneparentfamiliesintheOECD. • Childreninloneparentandstepfamiliesare twiceaslikelytobeinthebottom20%of childoutcomesaschildreninmarriedfamilies. • Internationalbenchmarkssuggestthatthe • Ofthe142,000mostdisadvantagedfamilies • Theattainmentgapforchildrenincarehas • WomeninBritainare40%morelikelyto proportionofadultswithoutuppersecondary levelsofqualificationsintheUKisabovethe OECDaverage,withtheUKalsoperforming relativelypoorlyinmanyotherstudiesof attainment. widenedsince2001,withtheproportion ofchildrenincareachievingfiveGCSEsor equivalentatgradeA*–Crisingfrom8% in2001to14%in2008,comparedwithan overallrisefrom48%to65%. • Just1%ofchildreneligibleforfreeschool mealsgotoauniversityintheRussellGroup, comparedwith7%ofnon-freeschoolmeal students. • Of81,000pupilsonfreeschoolmeals,only 45 wenttoOxbridge. • In2008/09therewerearound208,000 persistentabsenteesinprimary,state-funded secondaryandspecialschools,withthose eligibleforfreeschoolmealssubstantially morelikelytobepersistentlyabsent,and almostthreetimesaslikelytobeexcludedfor fixedperiods. Family structure Familystructuremayhaveapowerfulimpact onlifechancesandtheriskofpovertyinthe UK.Thereisaclearcorrelationbetweenfamily structureandwideroutcomes.Relationship intheUK(measuredintermsofthose whosufferfromfiveormoreselected disadvantages),under20%arefrommarried households,comparedwitharound65%forall families. enterpovertyiftheydivorcethanifthey remainmarried. • Loneparentfamiliesaretwiceaslikelytobe inthebottomincomequintileastwo-parent families. Loneliness and lack of social capital In2010,lonelinessandlackofsocialcapitalare aseriousproblem,impactingonwell-beingand awiderangeofotherindicators.Peoplewith fewersocialnetworksmay,forexample,beless successfulinjob-searching,whilelonelinesscan affectmentalhealth. Keystatistics • Halfofallpeopleaged75andoverlivealone, withnearlyhalfofallolderpeople(45%) consideringthetelevisionastheirmainform ofcompany. • Over500,000olderpeoplespentChristmas dayalonein2006. • Overhalfoftheadultpopulationdidnot participateinanycivicactivitiesinthelast year. Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK 13 • Some6%ofpeoplereporthavingnoclose friendsandafurther32%reporthavingonly onetotwoclosefriends. Poor housing and local environment In2010,poor-qualityhousingandthegrowing waitinglistforsocialhousingisasignificant problemintheUK,andhasadirectimpacton economic,healthandsocialoutcomes: • Some7.4millionhomes(33%)wereclassified asnon-decentin2008. • Socialhousingwaitinglistshavegrownbyover 70%since1997. • Some400to800peoplemaybesleeping roughinLondononanyonenight. • Some7%ofhouseholdsinEnglandreport noisetobeaseriousproblem. • Some10%ofhouseholdsreportcrimetobea seriousproblemintheirarea. Someofourpoorestcommunitiesaretypified byacombinationofpoorsocialandeconomic outcomesandpoorqualitylivingenvironment thatinteractandreinforceeachother.Theresult canbeconcentrationsofdeprivationthatcan persistforgenerations: • Low-incomehouseholdsareconcentratedin inner-cityandisolatedruralareas. • Some40%ofpeopleonout-of-work benefitsliveinthe20%mostdeprived neighbourhoods. • Therateofworklessnessamongthosein socialhousingismorethandoublethatofthe generalpopulation. • Indicatorsofeducationaldisadvantage,suchas absencerates,arehigherinthemostdeprived areas. Multiple disadvantage In2010,multipledisadvantageisasignificant problemintheUK.Overthepastdecade,there hasbeennodemonstrableprogressinreducing thenumbersofpeoplewhosuffermultiple disadvantage.Over60%oftheindicatorsin oneofthemainannualsurveysshoweither noprogressoratrendinthewrongdirection. Newanalysisshows5.3millionpeople(11%) sufferfrommultipledisadvantageintheUK,and 3.7 millionpeopledosopersistently. Thereisstrongevidencethatmultiple disadvantageisintergenerational:27%ofchildren fromfamiliesexperiencingsixormoreparentrelateddisadvantagesalsohavethreeormore disadvantages,comparedwithonly4%ofthose withnoparent-relateddisadvantages. 14 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK Chapter 1: Income poverty, inequality and social immobility Income poverty and inequality continue to be significant problems in the UK today and remain a barrier to social progress. Across a wide range of indicators it is clear that while on some measures progress has been made, on others, including severe poverty, the situation has got worse in recent years. Incomepovertyandinequalityareimportant forunderstandingdisadvantageinsociety.Living inincomepovertymeansbeingunabletohave thestandardoflivingmanytakeforgranted. Italsoaffectspeople’sfuturechancesand opportunities.Livinginincomepovertyasachild isassociatedwithincreasedrisksoflowerschool performanceandofbeingworklessinlaterlife, forexample,whilehavinglowincomeduring workingagereducesthechanceofbeingableto buildupthepensionandsavingsrequiredfora secureretirement. However,whileincomepovertyandinequality remainsignificant,itisimportanttonotethat evidencesuggeststhatotherfactorssuchas parentingstyle,homeenvironmentandschool experiencecanbeasinfluentialindeterminingan individual’soutcomesashouseholdincomelevels inchildhood.Itisthereforecrucialthatpolicyis notskewedtowardsincreasingincomesalone, butrathertakesaholisticapproachtopoverty anddisadvantageandtacklesthedriversbehind them. Thischapterexplores: • trendsandinternationalcomparisonsof incomepoverty; • thepersistenceofincomepovertyandgroups whichareparticularlyvulnerable; • levelsofpersonalindebtedness; • thedegreeofincomeandwealthinequality; and • theextentofsocialmobility. Keystatistics • Povertyamongsingleadultsandcouples withoutchildrenhasrisensince1997/98. Amongsingleadults,forexample,povertyhas risenbyaboutathird. • Theproportionlivinginsevereincome povertyhasincreasedsince2004/05. • Almostoneintenliveinhouseholdsthat experiencepersistentincomepoverty. • TheUKhasahigherproportionofthe populationonlowincomesthanmanyother Europeancountries. • Therewere10.9millionpeoplelivingin relativeincomepovertyin2008/09,300,000 fewerthanin1998/99,butup900,000since 2004/05. • Almost7millionpeopleliveinabsolute poverty. • Whilethenumberofchildreninrelative povertyhasfallen,accordingtoSavethe Children’smaterialpovertymeasurethe proportionofchildrenlivinginpovertyinthe UKhasincreasedfrom11%in2004/05to13% in2007/08. Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK 15 • TheUKhasrelativelyhighlevelsofincome inequalitycomparedwiththeOrganisation forEconomicCo-operationandDevelopment (OECD)average,whilewealthinequalityis evengreaterthanincomeinequality. • Ononemeasuresocialmobilityisworsein BritainthanintheUSA,France,Germany, Spain,Sweden,Canada,FinlandorDenmark. Trends in income poverty in the UK Thissectionconsidersmeasuresofrelative, absolute,andseverepoverty,aswellasmeasures ofmaterialdeprivation. Relative poverty Relativepovertyisameasureoftheproportion ofpeopleearninglessthanaparticular percentageofmedianincome.Onthismeasure: • usingapovertylineof60%ofmedianincome, 10.9millionpeople(18%ofthepopulation) liveinrelativepovertybeforehousingcosts4 (BHC)and13.4millionpeople(22%)after housingcosts(AHC);5 • usingapovertylineof50%ofmedianincome, 6.3millionpeople(10%ofthepopulation) liveinrelativepovertyBHC,and9.4million people(16%ofthepopulation)AHC;and • ingeneral,relativepovertyfellovertheperiod 1997/98to2008/09bothbeforeandafter housingcosts;howeversince2004/05there hasbeenarise. Absolute poverty Absolutemeasuresofincomepovertyfocuson levelsoflowincomecomparedwithaparticular pointinthepastorwiththelevelofincome neededtopurchasecertainitems.Thismeasure reflectswhetherlivingstandardsareincreasing forthoseatthelowerendoftheincome distribution. IntheUKtheabsolutemeasureofpovertyused inrecentyearshasbeenthenumberofpeople livinginhouseholdswithincomebelow60%of the1998/99real-termsmedianincome.Thedata showthat: • around8.9million(15%)ofthepopulation liveinabsolutepovertyAHCandaround6.8 million(11%)BHC;and • absolutepovertylevelshavefallenoverthe pastdecade. Material deprivation of children Materialdeprivationmeasuresattemptto identifythegoodsandservicesthatahousehold isabletoafford.Accordingtodatafrom Households Below Average Income 2008/09,while thevastmajorityofpeopleintheUKareableto affordbasicconsumergoodssuchasawashing machineorcolourtelevision,thereremain relativelyhighlevelsofunmetneedforbasic consumergoods: • Around40%ofchildrenareinfamilieswhere theadultsreportnotbeingabletoafforda week’sannualholidayawayfromhome. • Aroundafifthofchildrenareinfamilieswhere theadultsreportnotbeingabletoaffordto provideguestswithamealonceamonth. • Over30%ofchildrenareinfamilieswhere theadultsreportnotbeingabletoaffordto replacefurniture. 4 Relativepovertyismeasuredbyincomenetoftaxesbeforeorafterhousingcostsarededucted.Theafterhousing costs(AHC)measuretendstoprovideabetterreflectionofthelivingstandardsofpensionerscomparedwiththerestof societysincethemajorityofpensioners(72%in2008/09)owntheirownhomesoutright.Comparingpensionerincomes withthoseoftherestofthepopulationBHCdoesnotreflectthefactthatworking-agepeoplegenerallyhavetouse someoftheirincometopayforhousing.Whenassessingworkingageandchildpoverty,theBHCmeasureisabetter reflectionofrelativelivingstandardsasthesehouseholdsexercisesomechoicearoundtheamountoftheirincomethey spendonhousing. 5 DepartmentforWorkandPensions.HouseholdsBelowAverageIncome,1994/05–2008/09.Unlessotherwisestated, alldataaredrawnfromthissource. 16 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK Severe poverty Despitesomeprogressonrelativeandabsolute poverty,thereissomeevidencetosuggestthat severeincomepoverty–commonlydefined asincomebelow40%ofmedianincome–has increasedinthepastdecade.Between1998/99 and2008/09,thismeasureofseverepoverty appearedtorisefrom5%to6%BHC(Figure1.1). Thisdatamustbetreatedwithcaution.Asthe InstituteforFiscalStudies(IFS)notes,increases wereaccompaniedbyfallsinpersistentpoverty andnochangeinsevereexpenditurepoverty.6 Second,therearedifficultiesinaccurately measuringtheincomesofthoseatthelowest endoftheincomespectrum.7Concernsabout measuringverylowincomesarealsodiscussedin theHouseholds Below Average Incomereport. Anotherwayofapproachingmaterialmeasures ofseverepovertyisproposedbySavethe Children.8Onthismeasure,1.7millionchildren werelivinginpovertyBHCin2007/08.The proportionincreasedfrom11%ofallchildren in2004/05to13%in2007/08.Inmoneyterms, thismeanslivingonlessthan£12,220ayear(for acouplewithonechildunder14).Thisamount leavesfamiliesaround£113aweekshortofwhat theyneedtocoverfood,electricityandgas, phones,otherbills,clothes,washing,transport andhealthcare.9 Figure 1.1: Severe poverty (BHC) – there is evidence that the proportion of households with less than 40% of median income has grown 7% Percentage of individuals 6% 30 to 40% of median 20 to 30% of median 10 to 20% of median 0 to 10% of median 0 net income 5% 4% 3% 2% 1% 0% 1998 2000 2002 2004 2006 Source: Institute for Fiscal Studies 2010 6 DefinedbytheIFSaslessthan40%ofmedianconsumptionexpenditure–seeInstituteforFiscalStudies(2010).What hashappenedto‘severepoverty’underLabour?2010ElectionBriefingNoteNo.3 7 ibid. 8 Accordingtothismeasure,childrenarelivinginseverepovertyiftheylivein‘ahouseholdwithanincomeofbelow50% ofthemedian(AHC),andwherebothadultsandchildrenlackatleastonebasicnecessity,andeitheradultsorchildren orbothgroupslackatleasttwobasicnecessities’.SeeMagadiandMiddleton(2007).SevereChildPovertyintheUK. SavetheChildren 9 SavetheChildren(2010).MeasuringSevereChildPovertyintheUK:PolicyBriefing Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK 17 International comparisons of income poverty Theproportionofthepopulationlivingon relativelylowincomesishigherintheUKthan inmanyotherEuropeancountries,including France,GermanyandPortugal(seeFigure1.2). ComparedwithourEuropeancounterparts, theUKalsofarespoorlyintermsoftherisk ofpovertyforthoseaged65andover(30% comparedwithanEUaverageof19%onaBHC basis);whilein2007,thechildrenatriskof povertyratefortheUKwasthreepercentage pointshigherthantheEU27average,at23% (BHC).10 Figure 1.2: The UK’s relative poverty rate is high compared to other European countries % of households below 60% of equivalised median income 20% 15% 10% 5% s N et he rla ed nd en ce Sw an Fr an d y nl Fi er m an 15 G EU 27 l EU Po rtu ga K U ly Ita Sp ai n 0% Source: EU Community Statistics on Income and Living Conditions (2009), 2008 data 10 EUCommunityStatisticsonIncomeandLivingConditions(2009). 18 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK Persistence of income poverty • inGreatBritain,8%ofindividualslivein Themeasuresofincomepovertyusedabove captureasnapshotofthepopulationatacertain momentintime.Butanewentranttothe labourmarket,forexample,maytemporarily experienceincomepovertybutthenmoveout ofpovertybyprogressingatwork.Persistent povertyfigures(heredefinedasthoseliving below60%ofmedianincomeforatleastthree outoffouryears,BHC)attempttofiltersuch groupsout.Thedatasuggestthat: householdsthatexperiencepersistent povertyBHC,whilethefigureis10%AHC; • theproportionofchildrenandpensioners inpersistentpovertyisaround10%and 14%respectivelyBHC,and15%and9% respectivelyAHC;and • disabledpeoplearetwiceaslikelytobein persistentpovertyasnon-disabledpeopleat 11%and5%respectivelyBHC. Figure 1.3: The percentage of the population experiencing persistent poverty before housing costs is greatest among pensioners at 14% (2004-07) All population 8% Working age adults 5% Pensioners 14% Children 10% Source: Department of Work and Pensions, Low Income Dynamics, 1991–2007 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK 19 Personal indebtedness in the UK Overthepastdecadepersonaldebtreachedrecordlevels(Figure1.4)andUKhouseholddebtwas amongthehighestofanydevelopedcountry.Otherevidenceshowsthat: • although24%ofborrowinghouseholdsowedlessthan£1,000onunsecuredcredit,28%owed inexcessof£10,000in2008/09;11 • between7and9millionpeopleinBritainhavereportedhavinghadaseriousdebtproblem;12 • Britishconsumersare,onaverage,twiceasindebtedasthoseincontinentalEurope.13 Figure 1.4: UK personal debt as a percentage of total disposable income has risen sharply, although secured debt accounts for most of this increase 1.6 Unsecured Debt as % of total disposable income 1.4 Secured 1.2 1.0 0.8 0.6 0.4 0.2 0.0 1995 1997 1999 2001 2003 2005 2007 2009 Source: Office for National Statistics, Financial Statistics Consistent, 2010. Forsomehouseholds,thismaynotbeacauseforconcern.Students,forexample,mayget intodebtbutreasonablyexpecttopayitoffastheymoveintothelabourmarket.However, examinationofsurveydataonarrears–ameasureofhowdifferentgroupsarecopingwiththeir indebtedness–showsthatdebtproblemsseemcorrelatedwithgroupsmostatriskofpoverty. TheWealthandAssetsSurvey14foundthattheproportionofhouseholdsfallingbehindwith payments: • fallswithage.Nearly25%ofthoseinarrearsarebetween16and24; • ishighestamongtheunemployed,thoselookingafterafamilyhomeandthosetemporarilysick ordisabled; • ishigherinroutineoccupationsandthelong-termunemployed.Nearly25%ofthoseinarrears haveneverworkedorarelong-termunemployed;and • isparticularlyhighamongloneparentswithdependentchildren.Over30%ofthoseinarrears fallintothisgroup,doublethepercentageinthenextlargestcategory. 11 DepartmentforBusiness,InnovationandSkills(2010).Over-indebtednessinBritain:Secondfollow-upreport SocialJusticePolicyGroup(2007).BreakthroughBritain:Volume5,SeriousPersonalDebt 13 ibid. 14 OfficeforNationalStatistics(2009).MainResultsfromtheWealthandAssetsSurvey2006/08 12 20 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK A breakdown of poverty in the UK • Coupleswithchildrenhaveseennosignificant • Thepercentageofpensionersinpovertyhas • PovertyishigherintheNorthEastand Levelsofincomepovertyareunevenly distributedamonghouseholdtypes,regionsand constituentcountriesoftheUK,disabilitystatus andethnicity:15 declinedfrom29%to16%(AHC,1998/99 to2008/09),resultingin1.1millionfewer pensionersinpoverty. • Pensionerpovertycontinuestobegreatest amongolderandfemalepensioners,disabled pensionersnotinreceiptofdisabilitybenefits andethnicminorities. • Intermsofchildpoverty,thetargetofarate one-quarterlowerin2004/05thantherate in1998/99wasmissedby100,000BHCand 300,000AHC,althoughrelativepovertyfell by600,000inthe10yearsfrom1998/99to 2008/09. • Intermsofhouseholdtype,singleparentsare mostatriskofpoverty(Figure1.5). 15 16 changebetween1998/99and2008/09, whereascoupleswithnochildrenhaveseen ariseinpoverty(8%to10%BHC1998/99to 2008/09). theWestMidlandsBHC,andinLondon (particularlyInnerLondon),theNorthEast andtheWestMidlandsAHC.Atthecountry level,incomepovertyratesarehigherin Wales(BHCandAHC)andNorthernIreland (BHC)thantheUKaverage. • Thereisagreaterlikelihoodofdisabled peoplelivinginpoverty.Forexample,23% ofindividualsinfamilieswhereatleastone memberisdisabledareinpoverty,compared with16%offamilieswithnodisabledmember (BHC). • Relativepovertyratesvarybyethnicityand arehighestamongthoseofPakistaniand Bangladeshibackgroundat52%BHCand60% AHC.16 Thefiguresinthissectionrefertorelativepovertyas60%ofcontemporarymedianincomeunlessotherwisenoted. 60%ofmedianincomemeasure,BHCandAHC. Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK 21 Figure 1.5: The risk of poverty is greatest among single parents and single pensioners. Figures refer to those at risk of poverty measured as 60% of contemporary median, BHC, by household type 2008/09 Couple without children Couple with children 17% Pensioner couple Single with children 10% 34% 18% 23% Single pensioner 20% Single without children Source: Department for Work and Pensions. Households Below Average Income, 1994/95–2008/09 International comparisons of income inequality Incomeinequality,measuredintermsoftheGini coefficient,isatitshighestlevelforthesecond consecutiveyearsincerecordsbeganin1961.In addition,thegapinincomeinequalitybetween themiddleandthebottom,measuredinterms ofthe50:10ratio,hasnotimprovedinthepast decade,anditappearsthatincomesofthe bottom5%havefallenonaverageinrealterms whilethemedianhasgrownby1.6%perannum. Levelsofincomeinequalityaregenerally high comparedwithotherOECDcountries (Figure1.6): • TheUKhashigherlevelsofinequalitythan Sweden,France,Germany,Australia,Canada, JapanandSpain. • TheUKhaslowerlevelsofinequalitythan ItalyandtheUSA. WhiletheUKperformspoorlyintermsof incomeinequalitycomparedwithotherG8 nations,thelevelsofincomeinequalityinthe UKaresubstantiallybelowthoseofanumberof developingcountries–Mexico,forexample,has aGinicoefficientinexcessof40%oftheOECD average.(AlthoughtheUKisstartingfroma highbase,mostotherOECDcountrieshave experiencedhigherratesofgrowthininequality sincethemid-1990s.) 22 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK Figure 1.6: By international standards, the UK is relatively high in terms of income inequality 0.4 Gini coefficient 0.3 0.2 0.1 Sw ed en ce an y an m er Fr lia G tra A us D O EC na Ca 30 da n ai Sp n pa Ja K U ly Ita U SA 0.0 Source: Growing unequal: Income distribution and poverty in OECD countries, OECD 2008 Wealth inequality Inequalityinwealthisevengreaterthan inequalityofincome: • The2006/08Wealth and Assets Surveyfinds thattheleastwealthyhalfofhouseholdsowns only9%oftotalwealthinBritain,withthe lowestthirdowning3%(Figure1.7).Thetop 20%,bycontrast,owns62%. Intermsofthetrendsinwealthinequality, wealthownedbythetop1%,5%and10%ofthe populationincreasedfrom1990,peakingaround 2000/01beforefallingbackslightly.Wealth inequalityin2005wasthereforearoundthe samelevel(atleastforthetop1%,5%and10%) asin1996.17 • Themedianhourlywageofthetop10%of householdswas3.9timesthatofthebottom 10%. • Bycontrast,thetop10%ofhouseholds possess100timesthewealthofthebottom 10%. 17 HerMajesty’sRevenue&Customs.DistributionofPersonalWealthSeries Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK 23 Figure 1.7: Only 3% of total wealth is owned by the bottom third of households 22% 3% 0 10 20 75% 30 40 50 60 70 80 90 100 Wealth decile Source: ONS, Wealth and Assets Survey, 2006/08 data Social mobility Socialmobilityisakeycomponentofafair society.Withoutit,thosewhoarebornto disadvantagewillfinditdifficultorimpossible toadvanceinsocietyandprovideeffective supportfortheirfamilies.Intheabsenceofsocial mobility,incomeinequalityalsobecomesharder tojustify.Socialmobilityisimportantasit: • impliesequalityofopportunitybygiving individualstheopportunity,motivationand toolsto‘geton’;and • allowsabetterallocationofhumanresources, maximisingproductivityandindividual potential.18 Enhancingsocialmobilityhastwocore components: • absolutemobility:ensuringagreater proportionofjobsineachsuccessive generationarehighskillandhighvalueadded (‘roomatthetop’);and 18 • relativemobility:ensuringwithineach generationthatallgroupsareabletoaccess theopportunitiesavailablebyreducingthe impactofparentalachievementandpersonal characteristicssuchasrace,gender,disability andsexualorientation. Absolute mobility Thereissomeevidencethatthequalityofjobs onofferinthelabourmarkethasimprovedin thepastdecade,echoinglonger-termtrends wheretheUKhasmovedawayfromroutine semi-skilledandunskilledmanualworktowards moremanagerialandprofessionaljobs,suchas thatofdoctor,lawyerandmanager.However itisclearthatthereisstillalong‘tail’oflowskilledemploymentinthelabourmarketinthe UK,witharelativelyhighproportionofthe workforceengagedinlowvalue-addedwork. Thereisalsoevidencetosuggestthat,whilethe levelofqualificationatthelowendisimproving, thedemandforjobsrequiringthesequalifications isnotgrowinginresponse,resultinginmore jobsthatreportnotrequiringqualificationsthan peoplewithnoqualifications.19 Socialmobilitycanalsocontributetoimprovingthewell-beingofthoseinworkandtheirfamilies,althoughthispartly dependsonthedefinitionofwell-being 19 Felstead,Gallie,GreenandZhu(2007),SkillsatWork1986–2006.Thestudyreportsasizeableandgrowinggap betweenthenumberofjobsthatdonotrequireaqualification(6,990in2006)andpeoplewithnoqualification(2,232in 2006) 24 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK Relative mobility Evidencesuggeststhatbackgroundmattersto successintheUK:forexample,only7%ofthe populationattendedindependentschoolsyet, asFigure1.8makesclear,thosewhoattended independentschoolsmakeupoverhalfofmany professions,including75%ofjudges,70%of financedirectorsand45%oftopcivilservants. Figure 1.8: A high proportion of those in professional occupations have attended independent schools Top civil servants Top journalists Solicitors Lords 45% 54% 55% 62% Top barristers Finance directors Judges 68% 70% 75% Source: Fair Access to the Professions, 2009 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK 25 TheFair Access to the Professionsstudyalsofound thatseniorprofessionalshaveincreasinglycome fromwealthier-than-averagebackgrounds. Acrosstheprofessionsasawhole,thetypical professionalgrewupinafamilywithanincome wellabovetheaveragefamily’s:today’syounger professionals(bornin1970)typicallygrewupin afamilywithanincome27%abovethatofthe averagefamily,comparedwith17%fortoday’s olderprofessionals(bornin1958),whileinnine ofthetwelveprofessionsrecorded,thedata showsanincreaseinpeoplecomingfrombetterofffamiliesbetweenthe1958and1970birth cohorts.Thisispartlyexplainedbytheincreasing linkbetweenfamilyincomeandeducational attainmentastheadditionalopportunities tostayineducationfor16–18-year-olds disproportionatelybenefittedthosefrombetteroffbackgrounds,ashasthefurtherexpansionof highereducationfromthe1980s.20 Measuredbyintergenerationalearnings,Britain performspoorly,havingthehighestcorrelation betweensons’andfathers’earnings,compared withothercountriesincludingCanada,Finland andDenmarkwheresocialmobilityismuch higher(Figure 1.9). Figure 1.9: Great Britain has a poor record of social mobility, as indicated by the extent to which sons’ earnings levels reflect those of their fathers Correlation between fathers’ and sons’ earnings 0.5 0.4 0.3 0.2 0.1 0.0 Britain USA France Germany Spain Sweden Canada Finland Denmark Source: OECD (2010), Economic Policy Reforms: Going For Growth, Chapter 5 20 Baden,Machin,Gregg,(2005),ChangesinintergenerationalmobilityinBritain,CentreforEconomicPerformance 26 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK Further,usingabirthcohortstudy,evidence showsthat:21 • ofsonsborntoparentsinthebottom25% oftheincomedistribution,37%areinthe bottom25%byage33–34,withonly13% havingmadeittothetop25%;and • ofsonsborntoparentsinthetop25%of theincomedistribution,45%arealsointhe top25%byage33–34,withonly13%inthe bottom25%. Evidencefrominternationalcomparisonsofthe importanceoffamilybackgroundtobothincome andoccupationalclass,relyingondatafromthe 1970s,1980sand1990s,isunclear.Forchildren borninthe1960s,accordingtoonestudy,the UKwasatthetopofalistofninecountriesin termsoftheimportanceoffamilybackgroundon individuals’incomes,butotherliteraturesuggests theUKisclosertothemean.Furtherrobust evidencewillbeavailablethroughtheMillennium CohortStudyseries,butthisonlybeganinthe early2000ssoevidencewillonlyemergeover time. 21 ibid Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK 27 Chapter 2: Worklessness: unemployment and inactivity In too many communities in the UK, worklessness is prevalent. A higher proportion of children live in households where no one works than in any other EU country22 and, in total, more than one in four adults of working age are out of work. There is a particular problem with unemployment among young people, with around 940,000 16–24-year-olds currently unemployed23 and over 300,000 more 16–17-year-olds not in employment or full-time education than there were in 1997.24 Worklesshouseholdsaresignificantlymore likelytoexperiencepovertythanhouseholds inwhichatleastoneadultisinwork,25and evidenceshowsthatchildrengrowingupin poororworklesshouseholdsaremorelikely tobeworklessorpoorthemselvesasadults thanchildrenwhogrowupinhouseholdswhere someoneisinwork.26Itisthereforeimportant thatworklessnessismeasuredatahousehold levelaswellasanindividuallevel. Employmentoffersthebestandmostsustainable routeoutofpoverty:childreninhouseholds wheretwoadultsareinfulltimeworkhavea1% chanceofbeinginpoverty,comparedwitha64% chanceforchildrenintwo-parenthouseholds whereneitheradultworks.27Thereisalsoclear evidencethatworklessnesscontributestoill health,unhappinessanddepression,28withpeople whomoveintoworktendingtoreportsubstantial 22 improvementsinmentalhealth.Periodsof unemploymentcanalsohavealastingnegative impactonearnings.Forexample,youngpeople whospendtimenotineducation,employmentor trainingcanfacea10–15%wagepenalty.29 Thischaptersetsoutanalysisof: • employment,unemploymentandinactivity trendsoverthepastdecade,including evidenceofhowtheUKcompareswith internationalcomparators;and • thegroupsinoursocietymostatriskof worklessness. Itdemonstratesthatdespiterelativelyhighlevels oflabourmarketparticipation,theUKhasone ofthehighestratesofworklesshouseholds intheEU,withnearly4.8millionpeopleof workingageandafurther1.9millionchildren livinginworklesshouseholds.30Some2.6million OfficeforNationalStatistics,WorkandWorklessnessamongHouseholds,2009.Thiscomparisonisbasedon countrieswhichrecordthesestatisticsonEurostat. 23 Unlessotherwisestated,referencesinthisreporttounemploymentrefertotheILO’sinternationallyrecognised measureofunemploymentratherthanthenumbersofpeopleclaimingJobseeker’sAllowance.FigurespublishedinOffice forNationalStatistics,LabourMarketStatistics,May2010 24 OfficeforNationalStatistics,LabourMarketStatisticalBulletin,2010 25 OfficeforNationalStatistics,HouseholdsBelowAverageIncome,2010 26 Gregg,Harkness,andMachin(1999),Childpovertyanditsconsequences,JosephRowntreeFoundation;andSuchand Walker(2002)‘FallingBehind?Researchontransmitteddeprivation’,Benefits 27 DepartmentforWorkandPensions,HouseholdsBelowAverageIncome,2008/09 28 Black(2008),DameCarolBlack’sReviewofthehealthofBritain’sworkingagepopulation,TSO 29 GreggandTominey(2005)Thewagescarfromyouthunemployment,LabourEconomics,12;andGregoryandJukes (2001)Unemploymentandsubsequentearnings:estimatingscarringamongBritishmen,1984-1994,EconomicJournal,111 30 OfficeforNationalStatistics,WorkandWorklessnessAmongHouseholds,2009 28 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK peopleareonincapacitybenefits,whileover 2.5millionpeopleareunemployed,including around940,00016–24-year-olds.31Anumber ofthedriversofthisworklessness,including disincentivestoworkinherentinthecurrent benefitssystemandlowlevelsofeducational attainment,particularlyamongdisadvantaged groups,arediscussedinsubsequentchapters. Employment, unemployment and inactivity Labourmarketparticipationcanbeanalysedat boththeindividuallevelandthehouseholdlevel. Thissectionexploreseachinturn. Individual level Inspiteofthebillionsofpoundsspentviathe NewDealandothergovernmentschemes,there hasbeennoimprovementinoverallemployment ratesinthepastdecade.Thecurrentrateis72%, meaningmorethanoneinfouroftheworkingagepopulation–10.6millionpeople–arenot working.32 Therelativelyconstantoverallemploymentrate hidesthelong-termdeclineintheemployment rateformenwhichnowstandsbelow75%, comparedwithover90%inthe1970s,33although thisdeclinehasbeenoffsetbyrisingfemale participationrates. Ofthe10.6millionpeoplenotworking,arounda quarterareclassifiedasunemployed(i.e.actively seekingandavailabletotakeupwork): • followingtherecentrecession,almost 2.5 millionpeopleofworkingagearenow unemployed,withthenumberscontinuingto rise(therewasa53,000increasebetween October2009andMarch2010);and 31 • youngpeoplearedisproportionately representedamongtheunemployed.Around 940,000youngpeopleareunemployed (277,000ofwhomareinfull-timeeducation), consistingof207,00016–17-year-olds(an unemploymentrateof35.3%)and734,000 18–24-year-olds(anunemploymentrateof 17.9%).34 Evenbeforetherecentrecession,toomany peopleexperienced‘churn’betweenlowpaidjobsandout-of-workbenefits.Theusual ‘snapshot’unemploymentdatamissthisissue. Almostonemillionpeoplemadefiveormore claimsforJobseeker’sAllowancebetween October2000andMarch2010.35Whileahigh churnratecanreflectasystemthatisworking wellinencouragingpeopletoaccepttemporary jobsinsteadofbenefits,theprevalenceof repeatedclaimsoveraperiodofyearssuggests thatmorecouldbedonetohelppeople turnatemporaryopportunityintosustained employment. Inadditiontothosewhoareunemployedand activelyseekingandavailableforwork,there arearecord8.2millionpeople(21.5%ofthe working-agepopulation)classifiedasinactive– thatis,eithernotseekingornotavailablefor employment.(Increasednumbersaredueinpart topopulationchange,andnotallofthesepeople aredisadvantagedasthefiguresincludeagrowing numberofstudentsandthoselookingafter homeandfamily.)36Thereare2.6millionpeople inreceiptofsicknessanddisabilitybenefits, 39%ofwhomhavespentatleastfiveyearson benefits.Aftertwoyearsonincapacitybenefits, thechanceofleavingthesebenefitsinthenext yearislessthan20%. FigurespublishedinOfficeforNationalStatistics,LabourMarketStatistics,May2010 ibid. 33 OfficeforNationalStatisticsLabourMarketStatistics–IntegratedFirstRelease,TimeSeriesData 34 OfficeforNationalStatistics,LabourMarketStatistics,2010 35 OfficeforNationalStatistics,EconomicandLabourMarketReview,June2010 36 OfficeforNationalStatistics,LabourMarketStatistics,2010 32 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK 29 Oneofthefastestgrowinginactivegroupsis theunder-25s.Inthefirstquarterof2010,over halfofthe1.4millionunder-25snotinfull-time educationoremploymentwereclassifiedas inactive,withtheremainderunemployed.37 Some 45%ofthoseinthisgrouphaveneverhada paidjob. Theemploymentratefor16–17-year-oldsnot infull-timeeducationhasbeendecliningandis nowjust36.4%whileinactivityamongthisgroup hasrisenfrom14.2%in1992to39.4%today.38 BetweenFebruary–April1997andJanuary– March2010,thenumberof16–24-year-oldsnot inemploymentorfull-timeeducationincreased from1.1millionto1.4 million,anincreaseofover 300,000(althoughpartofthisincreasereflects populationgrowth).39 Spendingtimenotineducation,employment ortrainingcanhavealastingimpactonwages, withevidenceofa10–15%wagepenaltyfor youngpeople.40TheUKstillsuffersfroma relativelyhighproportionofyoungpeoplenot ineducation,employmentortrainingcompared withmostotherOECDcountries(Figure2.1). Figure 2.1: The UK has a high proportion of young people not in education, employment or training compared with most EU and OECD countries % of the population aged 15–19 not in education, employment or training 12% 8% 4% an d nl Fi an y er m G la nd Ire nc e Fr a U SA Po rtu ga O EC l D av er ag e ly Ita K U Sp ai n 0% Source: OECD, Education at a Glance 2009 (figures relate to 15–19-year-olds, 2007 data) 37 OfficeforNationalStatistics,LabourForceSurvey ibid. 39 OfficeforNationalStatistics,LabourMarketStatisticalBulletin,2010 40 GreggandTominey(2005)Thewagescarfromyouthunemployment,LabourEconomics,12;andGregoryandJukes (2001)Unemploymentandsubsequentearnings:estimatingscarringamongBritishmen,1984-1994,EconomicJournal,111 38 30 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK • theUKhasthehighestrateofchildren Workless households Measuringdisengagementfromthelabour marketatthehouseholdratherthanthe individuallevelhighlightstheseverityofthe situationintheUKcomparedwithourEU counterparts,andthelackofprogressthathas beenmadeoverthepastdecade: inworklesshouseholdsintheEU,with 1.9 millionchildrenlivinginworkless households(Figure2.2);42 • theworklesshouseholdratehasremained consistentlyabove15.5%since1999;43and • around30%ofpeoplewhohavelivedin • theUKhasthethirdhighestoverallrateof adultslivinginworklesshouseholdsinthe EU,behindonlyBelgiumandHungary,41with 4.8millionworking-agepeoplelivingina householdinwhichnooneisinwork; worklesshouseholdsinthepast10yearsdid soforatleasthalfofthatperiod.44 Figure 2.2: The UK has the highest rate of children in workless households in the EU, with 1.9 million children under 16 living in a household in which no one of working age is in work % of children living in jobless households 20% 16% 12% 8% 4% ec e re G l rtu ga s Po rla nd he a N et A us tri ai n Sp Ita ly e an c Fr an y m er G Ire la nd U K 0% Source: Eurostat, People living in jobless households aged 0–17, 2008 data 41 Eurostat,Peoplelivinginjoblesshouseholds,18-59,2008data OfficeforNationalStatistics,WorkandWorklessnessamongHouseholds,2009.Thiscomparisonisbasedon countrieswhichrecordthesestatisticsonEurostat 43 OfficeforNationalStatistics,WorkandWorklessnessamongHouseholds,2009 44 BritishHouseholdPanelSurveydata,1997/98–2007/08 42 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK 31 Geographical concentrations of worklessness Therearestronggeographicaldisparitiesin worklesshouseholdrates.Ataregionallevel,the highestratesareintheNorthEast,followedby Wales,LondonandtheNorthWest.Thelowest ratesareintheEastofEngland.Worklessnessis alsohighlyconcentratedatalocalauthorityand neighbourhoodlevel: • thereisastronglinkbetweenworklessness andsocialhousing–halfofworkless householdsareinsocialhousing;46and • theemploymentrateinthemostdeprived 10%ofneighbourhoodswas54.9%in2008/9 comparedwith75.2%intherestofEngland.47 • athirdofpeopleinworklesshouseholds liveinjust10%oflocalauthorityareas; andatwardlevel,fouroutof10peopleon out-of-workbenefitsliveinthe20%most deprivedneighbourhoods–over1.6million individuals;45 Figure 2.3: Unemployment rates in the UK are particularly high among certain groups, including the young, disabled people and certain ethnic minorities Longterm disabled 11% 18–24 years old 18% 16–17 years old 35% Ethnic minorities 13% Source: Office for National Statistics and Department for Work and Pensions 45 DepartmentforWorkandPensions,AdministrativeData,NOMIS OfficeforNationalStatistics,LabourForceSurvey 47 CommunitiesandLocalGovernmentanalysisofDepartmentforWorkandPensionsworking-ageclientgroupdata 2009 46 32 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK Vulnerable groups Ratesofunemploymentandinactivityvaryacross theUKbyage,ethnicity,education,disability status,familytypeandregion(Figure2.3).The datasuggestthatthereareanumberofgroups whohavebeenparticularlydisadvantagedover thepastdecade: • Asmentionedearlierinthechapter,and consistentwithothercountries,youngpeople facesignificantlyhigherunemploymentrates thanthewiderworking-agepopulation. • Unemploymentratesalsovarysignificantly betweenethnicminorities.Forexample, theethnicminoritygroupwiththelowest unemploymentratesisIndians(6.8%),and thehighestrateisamongPakistanis(19.0%), comparedwithanaverageunemployment rateamongethnicminoritiesof12.8%.Black Africanworklesshouseholdratesare36%, morethandoublethenationalaverage.48 48 • Lessthanhalfofallpeoplewithno qualificationsareinwork.In2008those peoplewithnoqualificationsexperienced unemploymentratesof18.0%compared withjust4.2%forpeoplewithdegreesor equivalentlevelqualifications.49 • Lessthanhalfofalldisabledpeopleare employed,withsomegroupssuchaspeople withlearningdisabilitieshavingasignificantly loweremploymentrate,andafurther10%are unemployed.50 • Employmentratesamongloneparentsare significantlylowerthanthenationalaverage (57%comparedwith72%),whileaquarterof allworklesshouseholds(23%)aremadeupof asingleadultanddependentchildren. 51 OfficeforNationalStatistics,LabourForceSurvey,Quarter1,2010 ibid. 50 LabourForceSurvey,2009 51 OfficeforNationalStatistics,WorkandWorklessnessamongHouseholds,2009 49 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK 33 Chapter 3: Welfare dependency Welfare dependency is a significant problem in the UK today. Around 1.4 million people have been on an out-of-work benefit for nine or more of the last 10 years,52 and at least 12 million working-age households receive financial support from the Government each week. This costs around £85 billion per annum.53 Welfaredependencycreatesanumberofcosts forindividualsandforsociety.Forindividuals, itcansetpeopleapartfromtherestofsociety, withevidencetosuggestthatthesourceof incomemaybemoreimportantthanthe levelofincomeindetermininglevelsofsocial exclusion.54Thisismainlyduetodisengagement fromthelabourmarket,whichcanhavewider effects:thelongerpeopleremainoutofwork, forexample,themorelikelyitisthattheirhealth willdeteriorateandmoreobstaclestowork willdevelop.Welfaredependencycanalsohave widerunintendedconsequencessuchas,creating disincentivestosave.Forsociety,welfare dependencyimplieshighlevelsofgovernment expenditureontransferpaymentsandthelossof potentialtaxrevenue. Thebenefitssystemitselfalsoimpactsnegatively onincentivestowork.Thecombinedratesat whichbenefitsandtaxcreditsarewithdrawnas peopleincreasetheirhoursofworkcanbeas highas95.5%,meaningfamilieskeeplessthan fivepenceineveryadditionalpoundearned(not includingadditionalin‑workcosts).Some70,000 familiesfacedeductionratesofover90%. 52 Working-age benefit dependency Volumes Evenfollowingprolongedeconomicgrowthfor muchofthe1990sand2000s,andwithsubstantial expenditureonemploymentprogrammes, claimantnumbersformanyout‑of‑workbenefits remaintoohigh.Thesehaverisenasaresultof therecentrecession.Forexample: • claimantnumbersofthemainout‑of‑work working‑agebenefitshavenowreached 4.9million,theirhighestlevelsince1998/99; • in‑workbenefitclaimantnumbershave risensubstantially,partlyasaresultofpolicy decisionstoexpandeligibility,with,for example,2.4millionhouseholdsnowreceiving WorkingTaxCredit; • thenumbersofworking‑agepeoplereceiving someofthebenefitsthatmaybeclaimed bothoutofworkandinworkhavealsorisen substantially.Forexample,thenumbersof working‑agepeopleclaimingDisabilityLiving Allowancehaverisenbyover40%since1997 to1.8million(Figure3.1).(Overallnumbers ofDisabilityLivingAllowanceclaimantshave grownfrom2.0millionin1997to3.1million, includingpensionersandchildren);and DepartmentforWorkandPensions,internalresearch,1999–2009 OfficeforNationalStatistics,FamilyResourcesSurvey2007/08.ThesefiguresincludeChildBenefitandtaxcredits 54 http://research.dwp.gov.uk/asd/asd5/report_abstracts/rr_abstracts/rra _219.asp 53 34 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK Figure 3.1: The numbers of working-age Disability Living Allowance claimants have increased by over 40% since 1997, from 1.2 million to 1.8 million Number of claimants 1.2m 1997 1.8m 1.5m 2003 2009 Source: DWP Tabulation Tool and Quarterly Statistical Releases • forseveralotherbenefitsthatmaybeclaimed bothoutofworkandinwork,claimant numbershaveremainedhigh.Forexample, 3.2millionworking‑agehouseholdsnowclaim HousingBenefiteachweek.55 Duration of benefit claims Thereisahighdegreeofpersistenceamong claimantsofmanylow‑incomeandout‑of‑work benefits.Forexample: • around2.6millionpeoplespentatleasthalfof thelast10yearsonsomeformofout‑of‑work benefitand1.4millionpeoplehavebeenonan out‑of‑workbenefitfornineormoreofthe last10years;56 • almost2.5millionworking‑agepeoplehave beenclaimingIncomeSupportorincapacity benefitsfortwoyearsormore,ofwhom aroundtwomillionareclaimingonincapacity grounds;57 Justathirdofthosewhohavebeenclaiming out‑of‑workbenefitsfortwoyearsormoreare agedover55,afurtherthirdareagedbetween 45and54andtheremainingthirdareaged under45. Fraud and error Inadditiontothelargenumbersofpeople claimingbenefitsandtaxcreditslegitimately, thereremainsignificantnumbersofpeople eitherclaimingfraudulentlyorbeingpaid toomuchinerror.Thetotalamountlostto fraudanderroreveryyearisestimatedat over£4.5billion.Officialestimatesoffraud anderrorinthetax‑creditsystemalonerun ataround£1.7billionayear.Regardingother benefits,estimatesoflossstandat£1.0billion in2009/10forfraud(up£200millionsince 2007/08)and£2.1billionforcustomerand officialerror. • around2.2millionpeople,including1.1million peopleofworkingage,havebeenclaiming DisabilityLivingAllowanceforoverfive years;58and • aroundhalfofallHousingBenefitclaimants, and40%ofworking‑ageclaimants,havebeen receivingthebenefitforoverfiveyears. 55 DepartmentforWorkandPensionsTabulationTool DepartmentforWorkandPensions,WorkandPensionsLongitudinalStudy,1999–2009 57 www.poverty.org.uk/14/index.shtml 58 DepartmentforWorkandPensionsTabulationTool 56 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK 35 Working-age benefit costs Partlyduetorisingvolumes,thecostsofthese working‑agebenefitsandtaxcreditshave increaseddramaticallyto£84.6billionfrom £60.9billionin1996/97(Figure3.2,bothfigures in2009/10prices).Muchofthisincreaseisdue totheintroductionoftaxcredits,however,in addition: • expenditureonworking‑ageHousingBenefit • expenditureonDisabilityLivingAllowancefor working‑ageclaimantshasincreasedbyalmost 60%from£3.9billionin1996/97to£6.2billion in2009/10(bothfiguresin2009/10prices). Figure3.3placesexpenditureonout‑of‑work benefitssuchasIncapacityBenefit,Income SupportandJobseeker’sAllowanceinthe contextofotherbenefitsandtaxcreditsand otherselecteddepartmentalexpenditure. hasincreasedbynearly40%from£10.4 billion in1996/97to£14.2billionin2009/10(both figuresin2009/10prices).Themaximum HousingBenefitawardisnowover£93,000 ayear,withtheaverageawardintheprivate rentedsectorover£5,500ayear;and Figure 3.2: Spend on working-age household benefits and tax credits increased by almost 40% from 1996/97 to 2009/10 £61bn £85bn 1996/97 2009/10 Source: Department for Work and Pensions and HM Revenue and Customs, costs in 2009/10 prices 36 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK Figure 3.3: The cost of the most expensive benefits and tax credits relative to selected other departmental expenditure 60 50 £ billion 40 30 20 10 ci un LA D H ou sin g an d Co Ba sic S ta te P l T ens io ax n & B A en tte e nd Tax fits a St nce cred A at e S llo its w ec on an c d Pe e n C In hild sion ca pa Be n ci ty efit Pe ben e ns io fits n Jo Inco Cr bs e ee me dit Su ke r’s p A por ll t O owa th n Ed Fu er b ce e uc rth er nefi at io n edu ts fo r u cati nd on er fi ve s Pr iso ns 0 Sources: DWP Tabulation Tool, DWP Statistical Analysis 2010, HMRC Child and tax credit statistics 2007 and 2009, and House of Commons Written Answers 12 March 2010 Low-income households Forthepoorest20%ofhouseholds,state supportintheformofbenefitsandtaxcredits constitutes58%oftheirgrossincome,59and whenmultiplebenefitsarepaid–usually tofamiliesfacinghighrents,caringforlarge numbersofchildren,and/orlivingwithsevere disabilities–ratescanbehighrelativetoworking peers.Forexample,ithasbeenestimatedthat around175,000householdsintheUKare entitledtoover£400aweekincashbenefits andtaxcredits,theequivalentofover£20,000a year,ofwhich: 59 60 • 125,000householdsareentitledto£400to £500aweek(£20,800to£26,000ayear);and • 50,000householdsareentitledtoover£500a week(over£26,000ayear)60(Figure3.4). OfficeforNationalStatistics,Theeffectoftaxesandbenefitsonhouseholdincome,2009 DepartmentforWorkandPensions,internalestimates Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK 37 Figure 3.4: 670,000 households are entitled to benefits of over £15,000 per year 495,000 households 125,000 households 50,000 households £15,600– £21,000 £21,000– £26,000 £26,000+ Source: Department for Work and Pensions, internal estimates Incentives to work Thebenefitssystemcontinuestoadverselyaffect theworkincentivesofthosewhomostneedan incentivetowork.Ofthevariousdisincentivesto work,threeofthemostsignificantarethat: • becauseoftheadditionalcostsassociated withwork(suchastravel,clothingandchild care)andthelossofout‑of‑workbenefits, somepeoplewillseerelativelysmallgains fromenteringworkandmayevenhaveless moneyaftertakingaccountofthesecosts thantheyhadonbenefits; • forthoseonanumberofbenefitsthatcan beclaimedinwork,thecombinationof howtheseparatebenefitsarewithdrawn asincomerisesmeansthatsomeindividuals seeverysmallgainstoprogressinginwork. Thesecombinedwithdrawalratescanbeas highas95.5%forfamiliesonlowincomes, meaningtheykeeplessthanfivepencein everyadditionalpoundearned(notincluding additionalinworkcosts),and70,000families faceratesofover90%;and • thecomplexityofthebenefitssystemmeans thatwithsomepeoplereceivingmultiple benefits,allwithdifferingeligibilityrules,the financialimpactofworkcanbedifficultto calculate.Theoftenconfusingandfrustrating experienceofclaimingbenefitscanalsomean claimantsarereluctanttotakeonajobthat maynotworkout. 38 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK Figure 3.5: Transfers from the State makes up 58% of the income of the poorest 20% of households, and 2% of the income of the richest 20% of households 60% % of gross income 50% 40% 30% 20% 10% 0% Bottom 2nd 3rd 4th Top Household quintiles Source: Office for National Statistics (2009). The effects of taxes and benefits on household income, 2007/08 Higher income households ItisnotjustthepooresthouseholdsintheUK thatreceivefinancialsupportfromtheState. Householdsinthetopfiveincomedecilesreceive anaverageof£2,885eachyearincashbenefits, andeventhetopincomequintileofhouseholds receive2%oftheirgrossincomefromtheState (Figure3.5).Householdswithchildrenare eligibleforChildBenefitandmaternitybenefits, regardlessofincome,andoveroneinfiveof DisabilityLivingAllowanceclaimantsareinthe toptwoincomequintiles(whenDisabilityLiving Allowanceisincludedasincomeandnoaccount istakenofextracostsofdisability). Welfare dependency among pensioners Thischapterhasfocusedonwelfare dependencyamongtheworking‑age population,giventhepotentialofdisincentives toworkforthisagegroup.Therehashowever alsobeenanincreaseinthenumberof pensionersreceivingbenefits,driveninpart bytheintroductionofPensionCredit.Over threemillionpensionerhouseholdsarenow inreceiptofmeans‑testedbenefits,primarily intheformofPensionCredit,raisingissues aroundtheextenttowhichthishascreated disincentivestosave. Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK 39 Vulnerable groups Thenumbersofpeopleclaimingbenefitsandthe durationofbenefitclaimsvaryacrosstheUKby ethnicity,education,familytypeandregion: • Levelofqualificationisstronglycorrelated withratesofbenefitclaiming.Forexample almosthalf(46%)ofthe2.6millionpeople onincapacitybenefitshavenoformal qualifications,andafurther13%hold qualificationsbelowarecognisedLevel2.61 MorethanoneinfiveofnewJobseeker’s Allowanceclaimants(22%)haveno qualifications.62 • ThoseoutsidetheSouthEastofEnglandare significantlymorelikelytobeclaimingcertain benefits.Forexample,6.1%ofworking‑age peopleclaimDisabilityLivingAllowanceinthe NorthWestcomparedwith3.5%intheSouth East.63 • Over40%ofbenefitclaimantsarefoundin the20%mostdeprivedneighbourhoods.The rateofIncapacityBenefitclaimantsinthese neighbourhoodsisnearlydoubletherate inEnglandfortheworking‑agepopulation (13.2%comparedwith6.9%).Thisamountsto roughly820,000people.64 • Likelihoodofclaimingbenefitsalsovaries accordingtofamilytype,withitlikelythat moreloneparentsreceivefinancialsupport fromtheStatethantwo‑parentfamilies. 61 DepartmentforWorkandPensions,NewDealforDisabledPeople:EligiblePopulationSurveyWaveThree,2006 Knight,(2010),ResearchReportNo624:JobseekersRegimeandFlexibleNewDeal,theSixMonthOfferandSupport fortheNewlyUnemployedevaluations:Anearlyprocessstudy,DepartmentforWorkandPensions 63 DepartmentforWorkandPensionstabulationtool;OfficeforNationalStatisticspopulationestimates2008 64 CommunitiesandLocalGovernmentanalysisofDepartmentforWorkandPensionsWorkingAgeClientGroupdata, 2009 62 40 State of the nation report: poverty, worklessness and welfare dependency in the UK Chapter 4: Poor health and educational disadvantage In 2010, the health gap, proxied by life expectancy at birth, between those from high and low socio-economic backgrounds is wider now than in the 1970s,65 while the gap in educational attainment between children from wealthy and deprived backgrounds remains high. Heath not only influences quality of life directly, but can also affect the extent to which people are able to participate in the labour market and in wider society. Despite growing life expectancy, there are many people who continue to experience poor physical and mental health, and the prevalence of risky behaviours remains an issue. Children’s health and well-being appear particularly poor relative to other countries. A recent report by the Organisation for Economic Co-operation and Development (OECD)66 suggests that – except for material well-being and quality of school life – the UK ranks below the middle on most other dimensions and our young people rank almost bottom on risky behaviours. In terms of education, a child in the UK eligible to free school meals is half as likely to achieve five or more GSCEs at grade A*–C, including English and maths, as a child from a wealthier background. In addition, many people in the UK are held back because of a lack of skills, with qualifications being correlated with stronger employment outcomes, higher wages and better 65 health. Of the working-age population, 10% still have no qualifications, which rises to 24% for working-age disabled adults.67 International benchmarks suggest that the proportion of adults without upper secondary levels of qualifications in the UK is above the OECD average.68 Health disadvantage Although life expectancy continues to increase,69 large numbers of people in the UK still suffer from poor health outcomes. Around 2.7 million adults (6%) aged 16 and over in England report having bad or very bad health.70 The number of people who report having a long-term health condition is around 18 million, of which around 10 million report suffering from a limiting longstanding illness.71 Some 32% of disabled people report difficulties in accessing goods and services, and 22% do not have frequent choice and control over their lives. ONS Longitudinal Study estimates of life expectancy, by social class 1972–2005 OECD, Doing Better for Children, 2009 67 Labour Force Survey, Quarter 2, 2008 68 OECD, Education at a Glance 2009 69 Life expectancy has risen to 77 years for males and 82 years for females, a rise of six and five years respectively over 25 years. Office for National Statistics (2009) Social Trends No. 39 70 NHS Information Centre. Health Survey for England, 2008. This figure has fluctuated between 6% and 7% between 2003 and 2008. Figure provided for 2008 66 State of the nation report: poverty, worklessness and welfare dependency in the UK 41 Mental health There are particular concerns around the state of the UK’s mental health, because of the profound effect this has on quality of life and because over 40% of people claiming healthrelated social security benefits cite mental-health problems as the reason.72 The overall cost of mental illness has been estimated at £77 billion a year.73 Several studies show or imply the prevalence of mental illnesses, in particular: •�around 6 million (15%) adults aged 16 and over have at least one common mental-health disorder74 and 3 million adults have symptoms severe enough to require treatment;75 •�the number of prescription items for anti- depressant drugs has increased from nine million in 1991 to 34 million in 200776 (although greater availability of drugs and better diagnoses will account for some of this increase); and •�roughly 1% of the population suffers from a severe mental illness like schizophrenia.77 71 Alcohol, smoking and drugs consumption It is notable that the UK experiences relatively high levels of risky behaviours such as alcohol consumption, smoking and drug dependency. The volumes of alcohol consumption by international standards are high (Figure 4.1), and the pattern of consumption exacerbates this: •�Around 2.4 million adults regularly drink more than double the amount specified by NHS guidelines – an average of 78 units per week.78 Alcohol consumption has doubled over the last 50 years, with nearly a quarter of the adult population drinking nearly threequarters of all the alcohol consumed in England.79 •�Around 1.6 million adults are moderately or severely dependent on alcohol.80 •�Societal harm from alcohol each year includes approximately one million incidents of violent crime, over 100,000 cases of domestic abuse, and over 600 deaths from drink driving,81 while costs to society are estimated at between £17 billion and £22 billion.82 Office for National Statistics. General Lifestyle Survey, 2008 data. Data for 2008 shows 17.8 million reporting long- term health conditions and 10.4 million reporting suffering from limiting long-standing illness. � 72 Department for Work and Pensions Tabulation Tool (Incapacity Benefit/Severe Disablement Allowance data, 2009) � 73 Sainsbury Centre for Mental Health (2003) The economic and social costs of mental illness. Policy Paper 3 � 74 The Clinical Interview Scheduled – Revised, 2007 data. The Clinical Interview Schedule – Revised (CIS-R) is an interviewer-administered structured interview schedule covering non-psychotic symptoms in the week prior to interview. It can be used to provide prevalence estimates for 14 types of neurotic symptoms, six types of common mental disorder, and a continuous scale that reflects the overall severity of neurotic psychopathology. It provides a more accurate estimate of the prevalence of common mental disorders in a population than survey-based measures, such as the GHQ or SF-36/12. � 75 McManus, Meltzer, Brugha, Bebbington & Jenkins (2009), Adult psychiatric morbidity in England, 2007. Results of a household survey. A survey carried out for The NHS Information Centre for health and social care by the National Centre for Social Research and the Department of Health Sciences, University of Leicester. � 76 Young Foundation (2009) Sinking and Swimming: Understanding Britain’s Unmet Needs, based on Office for National Statistics Social Trends data, 2009 � 77 ibid. 78 According to the NHS guidelines, men should not regularly drink more than 3–4 units a day and women should not regularly drink more than 2–3 units a day. � 79 Department of Health analysis of General Lifestyle Survey, January 2010. � 80 McManus, Meltzer, Brugha, Bebbington & Jenkins (2009), Adult psychiatric morbidity in England, 2007. Figures in 2007 were 111,340 incidents of alcohol-related violent crime and 608 deaths from drink driving. 81 ibid. 82 From Cabinet Office (2003) Alcohol misuse: how much does it cost? With updated estimates from Home Office and Department of Health. Costs from disorder and crime between £8 billion and £13 billion, unemployment and workplace sickness £6.4 billion and NHS costs £2.7 billion. 42 State of the nation report: poverty, worklessness and welfare dependency in the UK •�British teenagers drink more and earlier than their European counterparts, with UK 15-year-olds more likely to have both drunk alcohol and been drunk in the last 12 months than the European average (88% and 57% compared with 82% and 39% respectively).83 •�the problem is particularly acute among young adults, with 10.2% of 16–24-year-olds dependent on drugs other than alcohol; •�cannabis is the most common drug of dependency with 8.7% of 16–24-year-olds being dependent on it (2.7% of the overall population);85 and In terms of drugs and smoking: •�around 3.4% of adults aged 16 and over in •�21% of adults smoke cigarettes.86 England are dependent on drugs other than alcohol;84 Figure 4.1: The average person in the UK consumes 11.5 litres of pure alcohol per year Litres of pure alcohol consumed per person per year 14.0 12.0 10.0 8.0 6.0 4.0 2.0 ay or w N ly Ita d an Fi nl et h er la nd s ar k m N D en ai n Sp e an c Fr K U er m G Ire la n d an y 0.0 Source: World Health Organization Global Information System on Alchol and Health (GISAH), 2008. 2003 data, for adults over 15 83 European School Survey Project on Alcohol and Other Drugs, 2007. The NHS Information Centre, Adult psychiatric morbidity in England, 2007. Other drugs of dependency include cocaine, heroin and methadone but drugs that are less associated with dependency like LSD, magic mushrooms, etc, are not included 85 ibid. 86 General Lifestyle Survey 2008 84 State of the nation report: poverty, worklessness and welfare dependency in the UK 43 Overall population 16–24yearsold Figure 4.2: There is strong drug dependence among adults in England, with addiction concentrated among young adults All Male Female 10.2% 13.3% 7.0% 3.4% 4.5% 2.3% Source: Understanding the risks of social exclusion across the life course: Families with Children. Social Exclusion Task Force, Cabinet Office, 2009 Obesity The UK also suffers from rising levels of obesity: •�around 10 million adults (24.5%) in England aged 16 years and over are obese (Figure 4.3), up from 14.9% in 1993;87 •�of those, 800,000 (2.0%) are morbidly obese;88 87� The 88 89 90 •�around 1.4 million children aged 2–15 years (16.0%) are obese, up from 11.7% in 1995;89 and •�the prevalence of obesity in the UK is much greater than the average for OECD countries (24.0% versus 16.2%), with only the USA and Mexico reporting higher rates in 2006.90 NHS Information Centre, Health Survey for England 2008, 2009. ibid. ibid. OECD Health Data 2009. Note that data is only available for 14 of the 30 OECD countries in the sample. 44 State of the nation report: poverty, worklessness and welfare dependency in the UK Figure 4.3: 25% of the UK adult population was obese in 2008 15% 1993 20% 25% 1999 2008 Source: NHS Information Centre. Health Survey for England 2008 Trend Tables, 2009 Children’s health and well-being in the UK appears particularly poor relative to other countries. A recent OECD report suggests that – except for material well-being and quality of school life – the UK ranks below the middle on other dimensions.91 Our young people rank almost bottom on risky behaviours. •�The gap in terms of quality of life, as measured Distribution of health inequalities Health problems and diseases are not experienced equally. As a recent independent report, Fair Society, Healthy Lives, has identified, there remain significant and systematic differences in health: the poorer and more disadvantaged you are, the more likely you are to die early and to spend significantly more of your shorter life in poor health.92 •�The death rate for females under 75 from •�In England, people living in the poorest neighbourhoods die, on average, seven years earlier than people living in the richest neighbourhoods. Between the very richest and poorest, the gap is even larger.93 91 by disability-free life expectancy, is greater still with the average difference between those living in the poorest and richest neighbourhoods being 17 years; the gap between the very richest and poorest is also larger. circulatory diseases in the most deprived wards is almost three times higher than in the least deprived wards (2.7 times higher for men). •�The death rate for females under 75 from cancer in the most deprived wards is 1.4 times higher than for those in the least deprived wards (1.7 for men).94 In terms of obesity and risky behaviours: •�around 26% of those in routine or manual occupations smoke, with 7% being heavy smokers, compared with 3% in managerial and professional occupations;95 and Organisation for Economic Co-operation and Development (2009) Doing better for children The Marmot Review (2010) Fair Society, Healthy Lives. Strategic Review of Health Inequalities in England post-2010 93 i bid., 2003 data 94 Mortality by deprivation and cause of death in England and Wales, 1999–2003 (Ester Romeri, Allan Baker and Clare Griffiths) in Health Statistics Quarterly 32 (Winter 2006), ONS data for 1999–2003 for England and Wales by the Office for National Statistics. A similar link between health and deprivation is observed in other main causes of death, including ischaemic heart disease, stroke, all cancers, respiratory diseases, and general accidents 95� NHS, information centre, statistics on smoking, England 2009 92 State of the nation report: poverty, worklessness and welfare dependency in the UK 45 •�around 34% of those in routine or manual occupations are expected to be obese by 2012 compared with 29% of those in non-manual occupations, with the gap expected to widen by 2015.96 These systematic gaps cannot be explained in terms of chance or genetics alone. They are partly driven by clustering effects. In 2003, around 30% of men in social class V reported at least two combinations of being smokers, drinking alcohol at unsafe levels and having a poor diet; this compares with less than 10% of adult males from the highest social class.97 Educational disadvantage and a poor start for children In the future, the Government may use different benchmarks to measure the health of our society and the levels of disadvantage within it. Yet it is clear that, despite large increases in expenditure on education and growth in the proportion of children attaining current expected levels of educational achievement over the past decade, there are still a substantial number of children and adults who are not achieving their full potential, especially in the most disadvantaged 96� NHS communities. Moreover, the UK scores poorly on a range of other indicators of child wellbeing;98 a recent World Health Organization survey showed the UK’s performance on social and psychological indicators of child health and happiness to be disappointing.99 As a consequence, it has been estimated that the UK spends a third more than other countries in Europe on addressing social problems.100 Early years Social class is strongly associated with levels of development in the early years. This is shown by research into the 1970 birth cohort where a group of children’s ability levels were assessed at four points in time. The results imply that during primary schooling (around age 6), children with low ability (as assessed at 22 months) from families in the high Socio Economic Status (SES) overtake the children with high ability from families in the low SES group (Figure 4.4).101 This appears to be confirmed by a recent study suggesting an emerging social class gap in the early years for children born in 2000, although recent analysis of qualifications at 16 suggests a weakening link between parental income and child outcomes at that age.102 information centre, statistics on obesity, physical activity and diet, England 2010 Department of Health analysis of Health Survey for England 2003, published in Department of Health (2008) Health Inequalities: Progress and Next Steps 98 Bradshaw and Richardson (2009 published online) ‘An Index of Child Wellbeing in Europe’, Child Indicators research 99 World Health Organisation Regional Office for Europe (2008) ‘Social Cohesion of mental wellbeing among adolescents’ WHO/HBSC forum 2007 final report 100 Aked et al (2009) Backing the Future: ‘Why Investing in Children is Good for us All’, New Economics Foundation 101 Feinstein (2003) Inequality in the Early Cognitive Development of British Children in the 1970 Cohort, Economica Vol.70 102 Blanden and Machin (2007) Recent Changes in Intergenerational Mobility 97 46 State of the nation report: poverty, worklessness and welfare dependency in the UK Figure 4.4: Socio-economic background is strongly associated with early-years attainment 100 Low socioeconomic status; high early rank High socioeconomic status; high early rank Low socioeconomic status; low early rank High socioeconomic status; low early rank 90 80 Attainment percentile 70 60 50 40 30 20 10 0 22 32 42 52 62 72 82 92 102 112 Age (months) Source: Feinstein (2003) Inequality in the Early Cognitive Development of British Children in the 1970 Cohort. Economica Vol. 70 Evidence from long-term studies, such as the Effective Pre-school and Primary Education (EPPE) study, shows that in the early years goodquality childcare is second only to parenting in determining the child’s outcomes – both short and long term. Good-quality childcare as well as good-quality parenting programmes are therefore particularly important for children from disadvantaged backgrounds and can help to narrow gaps in achievement which are still visible up to age 10.103 The EPPE study also found that the quality of the learning environment of the home (where parents are actively engaged in activities with children) promotes intellectual and social development in all children. By international standards, the UK ranks 11th in the OECD countries in terms of the percentage of the population taking part in early years education.104 Children at primary and secondary school There is a clear link between poverty and underattainment throughout the education system; pupils who are eligible for free school meals have, on average, lower attainment than other pupils. By the end of Key Stage 2 (end of primary education) the chance of a pupil who is eligible for free school meals achieving Level 4 in reading, writing and maths is almost 1.5 times lower than that of a pupil who is not eligible for free school meals.105 In secondary education, a child eligible to free school meals is half as likely to achieve five or more GSCEs at grade A*–C, including English and maths, than a child from a wealthier background.106 103 Sylva et al (2008) Final Report from the Primary Phase of the Effective Pre-school and Primary Education (EPPE) study, published as DCSF RR061 104 OECD, Education at a Glance 2009 105 The percentage of FSM pupils achieving level 4 and above in English and maths is 53%, compared with 76% for non-FSM pupils 106 Department for Children, Schools and Familes Achievement tables, Time series of GCSE achievements by pupil characteristics, England 2006–09 State of the nation report: poverty, worklessness and welfare dependency in the UK 47 Figure 4.5: There is a clear and consistent link between poverty and educational attainment The gap between those eligible and ineligible for free school meals has remained persistently high, at around 28 percentage points Eligible Ineligible 54% 27% % achieving 5+ A*–C grades, including English and maths Source: Department for Children, Schools and Families, Achievement Tables, time series of GCSE achievement by pupil characteristics, England 2006–09 Although the gap in attainment between those eligible for free school meals and those who are not has narrowed in recent years, it has done so only slightly. By 2009, the gap was 23 percentage points at Key Stage 2 (with 76% of children ineligible for free school meals reaching Level 4 in English and maths, compared with only 53% of children eligible for free school meals) and around 28 percentage points at GCSE (54% of children ineligible for free school meals obtained five or more A*–C grades including English and maths, compared with 27% of children eligible for free school meals – see Figure 4.5). at GCSE has risen from 48% to 70%. The gap has therefore widened from 40 percentage points in 2001 to about 55 percentage points by 2009. Pupil achievement is hampered by absence from school. The number of persistent absentees fell from 273,000 in 2006/07 to 208,000 in 2008/09, but there are still relatively high numbers of pupils from disadvantaged backgrounds who are persistently absent: •�An average of 8% of half days are missed in the most deprived areas, compared with 4.6% in the least deprived. There are also large gaps in attainment in terms of the area in which pupils live. Although differences have narrowed slightly recently, there is still, for example, a 39 percentage point gap in gaining five or more A*–C grades at GCSE between those living in the most and in the least deprived areas. •�Those known to be eligible for free school Other disadvantaged groups are also falling behind, with a growing education gap for children in care. While the proportion of children in care achieving five GCSEs or equivalent at grade A*–C has risen from 8% in 2001 to 14.8% in 2009 (and to 21% on new data taking in a broader range of qualifications), over the same period the proportion of all children achieving those grades •�Of those with a statement of special 107 meals are much more likely to be persistent absentees (7.3% versus 2.5% for other pupils in 2008/09). •�Of pupils resident in the most deprived areas, 5.7% are persistent absentees, compared with just 1.3% in the least deprived areas. educational needs (SEN), 9.2% are persistent absentees, compared with 2.1% of pupils with no identified SEN in 2008/09.107 For all the bullets above, Department for Children, Schools and Families, Achievement Tables, England 2006–09 48 State of the nation report: poverty, worklessness and welfare dependency in the UK Even more critical than persistent absenteeism is the issue of pupils who are permanently excluded from school. In 2007/08 there were around 8,100 permanent exclusions (11 in every 10,000) and around 380,000 fixed-period exclusions (5.1% of the school population). Children eligible for free school meals are around three times more likely to receive either a permanent or fixed-period exclusion than children who are not eligible. For fixed-period exclusions, the rates were 11.6% and 4.0% respectively. Black Caribbean pupils have consistently been around three times more likely than the overall average to be permanently excluded and twice as likely to receive fixedperiod exclusions.108 •�just 1% of pupils eligible for free school meals By international standards, the UK ranks in the middle of 18 OECD countries surveyed in terms of overall reading achievement of 10-year-olds.109 For secondary education, the UK ranks 14th out of 57 countries in science (behind, for example, Finland, Canada, Japan and Germany), 17th in reading and 24th in maths.110 •�those with lower-level skills are less likely to Higher education Research shows that individuals with higher qualifications are more likely to be employed than those with lower qualifications, and once in work they earn more on average than similar individuals with lower-level skills. Participation in higher education is marked by socio-economic background. For example: •�fewer than one in five young people from the go on to a Russell Group university, compared with 7% of pupils who are ineligible;112 and •�out of the 81,000 pupils eligible for free school meals in 2006/07, only 45 went to Oxbridge. Adult population Despite a growing ‘lifelong learning’ culture in the UK, it is clear that there are millions of adults who may be regarded as suffering from educational disadvantage: •�7.3 million adults in England (24%) lack at least a Level 2 qualification, i.e. those academic and vocational qualifications, that are equivalent to five GCSEs A*–C;113 receive work-related training through their employer, are less likely to participate in informal training, and face greater barriers to learning, with just 47% of those with no qualifications engaging in further learning (compared with 97% of those with a higher degree);114 and •�3% to 5% of adults lack basic numeracy or literacy skills.115 International benchmarks suggest that the proportion of adults without Level 2 qualifications in the UK is higher than the OECD average, and substantially above levels in Germany, Sweden and the USA.116 most disadvantaged areas participate in higher education compared with more than one in two for the most advantaged areas;111 108 In 2007/08, 0.36% of Black Caribbean pupils were permanently excluded compared with 0.12% of the school population as a whole (11.1% versus 5.77% for fixed-period exclusions). � 109 IEA, PIRLS 2006 � 110 OECD, PISA 2006. It should be noted that the scores of many countries are similar, and therefore rankings should not be over-interpreted as many countries have scores that are not statistically different. 111 HEFCE 2010/03: www.hefce.ac.uk/pubs/hefce/2010/10_03/ � 112 BIS analysis of matched National Pupil Database and HESA student record � 113 2009 data, Statistical First Release on Post-16 Education & Skills: www.thedataservice.org.uk/statistics/sfrmar10/ � 114 National Adult Learning Survey, Department for Education and Skills (2006) Research Report 815 � 115 Estimates for 2002–03, Skills for Life Survey. The survey is currently being updated. � 116 OECD (2009) Education at a glance � Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK 49 Chapter 5: Families and communities There are severe problems in the UK today related to family breakdown, low levels of social capital, the shortage of good-quality housing and the extent of neighbourhood deprivation. AroundthreemillionchildrenintheUKhave experiencedtheseparationoftheirparents,117 andtheUKhasoneofthehighestratesof teenagebirthsinEurope.118Some6%report havingnoclosefriends,119whileover500,000 olderpeoplespentChristmasdayalone in2006.120Some7.4millionhomes(33%) areclassifiedas‘non-decent’121while7%of householdsinEnglandreportnoisetobea seriousproblem.122 Aswithotheraspectsofdisadvantage,these problemsareunevenlyspread.Peoplein managerialandprofessionaloccupationsare morelikelythanallotheroccupationalgroups tohaveparticipatedincivicengagement,for example.123 Thereisaclearrelationshipbetweenthese aspectsofdisadvantageandthosesetoutin earlierchapters.Intermsoffamilystructure, thereis,forexample,astrongcorrelation 117 betweenrelationshipbreakdownandadultillhealth,124andthereisalsoevidenceofsignificant differencesbetweenchildrenwhoexperience parentalseparationcomparedwithchildren in‘intactcouplefamilies’acrossarangeof educational,behavioural,emotionalandhealth outcomes.Intermsofsocialcapital,young peoplefromlowersocio-economicbackgrounds arelesslikelytoestablishsocialnetworksbeyond theirimmediatecircle,forexample,andthismay restrictjobopportunities.125 Intermsofhousing,linkshavebeenfound betweenpoorqualityhousing(suchashomes thataredamporhardtoheat)andarangeof healthoutcomes,suchasrespiratoryconditions andstomachproblems.Ataneighbourhood level,growingupinaneighbourhoodwith highlevelsofcrimeandantisocialbehaviour increasesthechancesofbeingeitheravictimor perpetratorofcrime,whilecertainareashave HerMajesty'sGovernment(2004)ParentalSeparation:Children’sNeedsandParents’Responsibilities OECD(2009)Doingbetterforchildren 119 CommunitiesandLocalGovernment(2009)CitizenshipSurvey2007/08 120 YoungFoundation(2009)SinkingandSwimming:understandingBritain’sunmetneeds 121 CommunitiesandLocalGovernment(2010)EnglishHousingSurvey:HeadlineReport2008/09 122 CommunitiesandLocalGovernment(2009)SurveyofEnglishHousing2007/08 123 CommunitiesandLocalGovernment(2009)CitizenshipSurvey2007/08 124 ColemanandGlenn(2009)WhenCouplesPart:Understandingtheconsequencesforadultsandchildren 125 Websteretal(2004)PoorTransitions:YoungAdultsandSocialExclusion 118 50 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK • Around3millionchildrenintheUKhave concentrationsofworklessnessandwelfare dependency.Thereisalsoastronglinkbetween socialhousing,povertyandworklessness;halfof allworklesshouseholdsareinsocialhousing.126 experiencedtheseparationoftheirparents. Thisispartlyattributabletoarisein cohabitation,giventheincreasedlikelihood ofbreak-upforcohabitingcouplesrelative tomarriedcouples.127Approximatelyone inthreeofthoseparentscohabitingatbirth willseparatebeforethechildisfiveyearsold, comparedwith1in10marriedparents.128 Changes in family structure Thereisevidenceofsignificantchangesinfamily structuresinthelast30yearsacrossarangeof measures: Figure 5.1: The proportion of children being born outside of marriage has risen from under 5% in the 1950s to 45% in 2008 500 All outsidemarriage live births Cohabitants Lone parents Rate per thousand live births 400 300 200 100 2004 1996 1988 1980 1972 1964 1956 1948 1940 1932 1924 1916 1908 1900 0 Source: Institute for Fiscal Studies (2010) Cohabitation, Marriage and Child Outcomes 126 StrategyUnit/SocialExclusionTaskForceanalysisofLabourForceSurvey2009 Benson(2009)Familypolicy,breakdownandstructure.BCFT 128 KiernanandMensahPartnershiptrajectories,parentandchildwellbeinginHansen,JoshiandDex(2010)Childrenof the21stCenturyVolume2:thefirstfiveyears 127 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK 51 • Birthsoutsideofmarriagerosefrom37% to45%between1997and2008(Figure5.1), composedalmostentirelyofanincrease inbirthstocohabitingparents.129Thisis consistentwithtrendsacrossEurope.130 • Themarriageratehasdeclinedby38%since 1970,inlinewiththeEuropeanaverage;the numberofdependentchildreninmarriedcouplefamiliesfellby1.3million,from 9.6 millionto8.3million,between1997and 2009,131butthisremainsthemostcommon familyform. • Therearearound2millionfamiliesheaded byaloneparent(90%ofwhichareheaded byamother,andthemajorityresultingfrom relationshipbreakdown).Thisrepresents aroundaquarterofallfamilieswithchildren, thefifthhighestproportionintheOECD (Figure5.2,forselectedcountriesonly).132 Theratevariessignificantlybyethnicityin theUK,with56%ofBlackorBlackBritish childrenlivinginloneparentfamilies.133 Figure 5.2 The UK has one of the highest proportions of lone-parent families in the OECD (selected countries only) 30% % of lone parent households 25% 20% 15% 10% 5% ga l Po rtu nd s he rla Ita ly N et Ire la nd N or w ay O EC D 2 9 Fr an ce Sw ed en Sp ai n G er m an y U K U SA 0% Source: OECD (2009) Family Database SF1: Family size and composition 129 InstitueforFiscalStudies(2010)Cohabitation,marriageandchildoutcomes Roberts,Stafford,Duffy,RossandUnell(2009)Literaturereviewontheimpactoffamilybreakdownonchildren, Brussels:EuropeanCommission,Directorate-GeneralforEmployment,SocialAffairsandEqualOpportunities,Unitfor SocialandDemographicAnalysis 131 OfficeforNationalStatistics(2009)SocialTrends40 132 OECD(2009)FamilyDatabaseSF1:Familysizeandcomposition 133 OfficeforNationalStatistics(2009)SocialTrends40 130 52 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK • In2007thedivorcerateinEnglandand Waleswas11.9per1,000marriedpopulation; divorcerateshaveremainedrelativelystable sincethemid-1980s.134 • Stepfamiliesarethefastestgrowingfamily typeintheUK.135Around1in10children nowliveinstepfamilies,abovetheOECD average.136 • Whilebirthsamongunder-18sareattheir lowestrateforover20years,theUKhasthe highestteenagebirthrateinEurope (Figure5.3).137 Figure 5.3: The UK has the highest teenage birth rate in Europe Births per 1,000 women aged 15–19 25 20 15 10 5 s N et he rla nd e an c Fr en Sw ed Ita ly ai n Sp ay or w N er m an y G U K 0 Source: OECD (2009) Doing better for children. Teenage fertility rates (15–19) per 1,000 women aged 15–19, 2005 134 OfficeforNationalStatistics(2009)SocialTrends40 Mooney,OliverandSmith(2009)Impactoffamilybreakdownonchildren’swellbeing:evidencereview 136 OECD(2009)Doingbetterforchildren 137 OECD(2009)Doingbetterforchildren 135 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK 53 Familybreakdownisassociatedwithanumber ofpooroutcomesfortheadultsandchildren involved.Forexample,thereisastrong correlationbetweencouplerelationship breakdownandadultill-health,138particularly maternalmentalhealth:motherslivingwith thefatheroftheirchildreportlessdepressive symptomsthanthoselivingwithotherpartners orasloneparents.139Thereisalsoevidenceof significantdifferencesbetweenchildrenwho experienceparentalseparationcomparedwith childrenin‘intactcouplefamilies’acrossarange ofeducational,behavioural,emotionalandhealth outcomes.Forexample,childreninlone-parent andstepfamiliesaretwiceaslikelytobeinthe bottom20%ofchildoutcomesaschildrenin marriedfamilies.140Itisalsonoteworthythatof the142,000mostdisadvantagedfamiliesinthe UK(measuredintermsofthosewhosufferfrom fiveormoreselecteddisadvantages)under20% werefrommarriedhouseholds,comparedwith around65%ofallfamilies(Figure5.4).141 Lone-parentfamiliesaretwiceaslikelytobe inthebottomincomequintileastwo-parent families(39%beforehousingcostsand44%after housingcostsforloneparentfamilies,compared with20%and21%respectivelyfortwo-parent families). 138 Thesecorrelationsshould,however,be interpretedwithsomecautionbecauseitis difficulttoassessaccuratelythedirectionand extentofcausalitybetweenfamilybreakdown, riskfactors(suchaspovertyandmaternalmental health)andoutcomes.142Forexample,childrenin householdsheadedbymarriedcouplesmayhave betteroutcomesduetothefactthatpeoplewho havehadabettereducationaremorelikelyto getmarried,ratherthanmarriageitselfcausing thoseoutcomes.Thescaleanddurationofthe impactonchildrenisalsocontested.Research indicatesthatoutcomegapsvarysignificantly withinfamilystructuresandarerelativelysmall comparedwithsocio-economicfactors,while separationmayinfactbenefitchildrenwhere therearehighlevelsofparentalconflict.143 Nevertheless,thestrongevidencelinkingthe experienceoffamilybreakdownanddysfunction topooreroutcomesforbothadultsandchildren indicatestheimportanceoffamilystructureand homeenvironmentforpolicy. ColemanandGlenn(2009)WhenCouplesPart:Understandingtheconsequencesforadultsandchildren BrownandMoran(1997)Singlemothers,povertyanddepression;Hetherington(1999)Shouldwestaytogetherfor thesakeofthechildren?;Hetherington(1999)Copingwithdivorce,singleparentingandremarriage 140 LexmondandReeves(2009)BuildingCharacter(Demos) 141 SocialExclusionTaskForceanalysisofFACS2006data,2010 142 Giventheinter-relationshipsbetweenloneparenthood,income,maternalmentalhealthandparenting,thereremains debateoverthevalidityofcontrollingforthesehighlycorrelatedvariables.Forexample,womeninBritainare40% morelikelytoenterpovertyiftheydivorcethaniftheyremainmarried(withanaveragefallofincomeof17%),since separationoftenmeansthedirectlossofafamilyearnerandmayalsomakeitharderforthemothertowork,sosimply discountingforincomeignoresthiscausalpathway 143 Mooney,OliverandSmith(2009)Impactoffamilybreakdownonchildren’swellbeing:evidencereview 139 54 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK Figure 5.4: Under 20% of the most disadvantaged families have married couples heading them 100% Stepfamily Composition of families by type Cohabiting couple 80% Married couple 60% Lone parent – other (divorced, separated, widowed) Lone parent – single, never married 40% 20% 0% % of all families Most disadvantaged 142,000 families Source: Social Exclusion Task Force analysis of GHS and FACS 2006 data, 2010 Thereisstrongeragreementthatfamily breakdownismostdetrimentaltochildrenwhere therearerepeatedchangestofamilystructure forexamplefroman‘intactcouplefamily’,to loneparenthood,tostepfamilystatus,andback toloneparenthood.Familytransitionsareoften linkedtoanumberofotherchangesinliving circumstances,parentalemployment,schools, andfluctuationsinincome,andtheeffectsof thesechangesarebelievedtobecumulative, withmultipletransitionsbeingparticularly detrimentaltochildren’swell-being.144Recent researchindicatesthatrisksofpoverty,maternal depressionandchildrenhavingemotionaland behaviouralproblemsarehighestwherelone mothersexperience‘periodsofpartnership’with thefatherand/orotherpartners(Figure5.5).145 144 Familybreakdowndoesnotaffectallpartsofthe countryorallsectionsofcommunitiesequally. Forexample,loneparentfamiliesareheavily concentratedindeprivedurbanareas,which haveratesofover40%,comparedtounder15% inseveralpartsofSouthEastandEastEngland,146 whilestudieshavefoundaclearassociation betweenlivinginadeprivedwardandadolescent pregnancyintheUK.147 Theevidencealsosuggeststhatriskoffamily breakdownislikelytobetransmittedintergenerationally,withchildrenofdivorcedparents estimatedtobetwiceaslikelyaschildrenof non-divorcedparentstoexperiencedivorce themselves.148 Mooney,OliverandSmith(2009)Impactoffamilybreakdownonchildren’swellbeing:evidencereview KiernanandMensah,Partnershiptrajectories,parentandchildwellbeing,inHansen,JoshiandDex(2010)Childrenof the21stCenturyVolume2:thefirstfiveyears 146 OfficeforNationalStatistics(2007)Focusonfamilies 147 SloggetandJoshi(1998);McCulloch(2001)reviewedinWorldHealthOrganization(2004)AdolescentPregnancy: IssuesinAdolescentHealthandDevelopment 148 Mooney,OliverandSmith(2009)Impactoffamilybreakdownonchildren’swellbeing:evidencereview 145 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK 55 Figure 5.5: Proportion of children experiencing behavioural problems at age five by family structure and relationship structure Proportion of children experiencing behavioural problems at the age of five 35% 30% 25% 20% 15% 10% 5% bl sta rie ar at M ar rie ha d bi tin b g irt to h – m – h irt Co e d e bl sta rie ar b at g tin Co ha bi ar M d P LP to m h rie d at b irt – h irt to sta to g b LP at L bl e P L tin g ha bi tin ha co ar LP to p re to g tin bi er tn ar p ew n Co ha bi Co er tn ip sh er tn ar LP to f p o ds io er p LP to ed 0% Source: Kiernan and Mensah, 2010 Partnership trajectories, parent and child wellbeing in Hansen, Joshi and Dex, Children of the 21st Century: the first five years. Loneliness and lack of social capital Thenatureandqualityofpeople’ssocial relations,whetherwithfriendsandfamilyor widercivicengagementthroughorganisations andothersocialnetworks,playsanimportant roleindeterminingwellbeing.Althoughthe UKcomparesfavourablywithothercountries onanumberofindicatorsofsocialcapital, suchaswillingnesstodonatetocharity,there remainsubstantialnumberswhosufferfrom disadvantageineithercivicorpersonalsocial capital. 149 Intermsofcivicengagement,largenumbersof citizensareactivelyinvolvedintheircommunities, with47%ofallpeoplecarryingoutatleastone formofcivicengagementactivityinthelast year.149Evenmorecitizens(64%)takepartin someformofvolunteeringatleastonceayear. Nonetheless,thereseemstobesomeuntapped demandforgreaterinvolvement: • only39%ofpeopleagreetheycaninfluence decisionsthataffecttheirlocalarea,andeven fewer(22%)agreetheycaninfluencedecisions affectingthecountryasawhole; CommunitiesandLocalGovernment(2010)CitizenshipSurvey2008/09.Civicengagementactivityincludescivil activism,civicconsultationandcivicparticipation.Allotherreferencesinthissectionaretothe2008/09Citizenship Surveyunlessotherwisestated 56 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK • 49%ofpeoplesaythattheywouldliketobe • around2.5millionpeople(6%)report having • only10%ofpeoplehave,inthelastyear, • theEnglishHealthSurveyof2005foundthat Moreover,therearedifferencesinthe characteristicsofpeoplewhoarelikelytoget involved: • onlyhalfofpeoplefeelthatpeopleintheir moreinvolvedindecisionsaffectingtheirlocal area;and participatedincivicactivism.150 • Whitepeoplearemorelikelythanmost otherethnicgroupstosaythattheyhave participatedincivicengagement; • peopleaged16–25arelesslikelythanmost agegroupstoparticipateincivicengagement; and • peoplewithmanagerialandprofessional occupationsaremorelikelythanallother occupationalgroupstohaveparticipatedin civicengagement. Intermsofsocialnetworks,manypeople(41%) reporthavingthreetofiveclosefriends.151 However,thereseemtobesomepeoplewho havefewsocialnetworksandaperceivedlackof socialsupport: • around2.9millionpeople(8%)feeltheylack oneormoreofthefollowing:someoneto listen,someonetohelpinacrisis,someone torelaxwith,someonewhoappreciatesthem andsomeonetocountontooffercomfort. Some2%ofthepopulationlackallofthese formsofsupport,indicatingaminoritywho experienceadeepformofsocialisolation;152 150 noclosefriendsandafurther13.3million (32%) reporthavingonlyoneortwoclosefriends;153 onequarterofthepopulationsuffered‘some lack’ofsocialsupport,with14%sufferinga ‘severelack’;154and neighbourhoodcanbetrusted,withtrust lowestamongthoseaged16–24years(33%) andthoseinthemostdeprivedareas(21%). Theelderlyaremostlikelytosufferfrom loneliness.Halfofallpeopleaged75andover livealone,withnearlyhalfofallolderpeople (45%)consideringthetelevisionastheirmain formofcompanyandover500,000olderpeople spendingChristmasdayalonein2006.155 Housing and quality of local environment Poorqualityhousingremainsaproblemformany peopleintheUK: • overcrowdingremainsaproblemincertain areas.Acrossalltenures,6.8%ofhouseholds inLondon,forexample,werelivingin overcrowdedaccommodationin2007/08;156 Eitherindirectdecision-makingaboutlocalservicesorissuesorintheactualprovisionoftheseservicesbytakingon arolesuchasalocalcouncillor,schoolgovernorormagistrate 151 CitizenshipSurvey2007-08.Thequestionisasked:‘Somepeoplehaveclosefriends.Thesearepeopletheyfeelat easewith,cantalktoaboutprivatematters,orcallofforhelp.Wouldyousayyouhavenofriends,oneortwo,threeto five,sixtoten,ormorethanthat?’. 152 BasedonindicatorsintheBritishHouseholdPanelSurvey,2008 153 CitizenshipSurvey2007-08,basedonmid-yearpopulationestimates 154 ReportedinYoungFoundation(2009)SinkingandSwimming:understandingBritain’sunmetneeds 155 ibid 156 CommunitiesandLocalGovernment(2009)SurveyofEnglishHousing2007/08 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK 57 • some7.4millionhomes(33%)werenon- decentin2008(including4.8millionhomes withpotentiallyserioushazardsunderthe HousingHealthandSafetyRatingSystem). Overall,socialsectorhomeswereinabetter conditionthanprivatesectorhomes;157 • in2008,3.1million‘vulnerablehouseholds’ werelivingintheprivatesectorofwhich 1.2million(39%)werelivinginnon-decent homes;158 • 53,000householdsaredependentontheir localauthorityforhousinghavingbeen acceptedashomelessandplacedintemporary accommodation;159 • itisdifficulttoestimaterough-sleepinglevels withaccuracy,butaround3,500people wererecordedashavingcontactwithroughsleepingcharitiesinLondonin2008/09160and some400to800peoplecouldbesleeping roughinLondononanyonenight;161and • around540,000peopleinEnglandlive awayfromtheirhomesininstitutions, predominantlyeitherinnursingandresidential carehomes,inprisonorinlocalauthority care.Livinginaninstitutiondoesnot necessarilyimplydisadvantage(particularly whereelderlypeoplerequireresidentialcare), butinmanyinstances,beingremovedfrom thefamilyhomedoesconstituteaformof deprivation,andthequalityofaccommodation inmanyinstitutionscanbepoor.162 157 Intermsofqualityoflocalenvironment;in England • 7%ofhouseholdsreportnoisetobea seriousproblemand9%ofhouseholdsreport vandalismandhooliganismtobeaserious problem;163and • 10%ofhouseholdsreportcrimetobea seriousproblemintheirareaand4%report neighbourstobeaseriousproblem.164 Crimeisnotevenlydistributedacrossthe country.TheBritishCrimeSurvey165records ahigherriskofcrimeinthemostdeprivedand urbanareas: • Londonhasthehighestratesofpolice recordedcrimeandtheEastofEnglandthe lowest;and • 59%ofrobberiesinEnglandandWaleswere recordedbyjustthreepoliceforces:the Metropolitan,GreaterManchesterandthe WestMidlands. Someofourpoorestcommunitiesaretypified byacombinationofpoorsocialandeconomic outcomesandpoorqualitylivingenvironment thatinteractandreinforceeachother,effectively trappingpeoplewhoareunabletomoveoutand seekopportunitieselsewhere.Theresultcanbe concentrationsofdeprivationwhichcanpersist forgenerations. CommunitiesandLocalGovernment(2010)EnglishHousingSurvey:HeadlineReport2008/09 CommunitiesandLocalGovernment(2010)EnglishHousingSurvey:HeadlineReport2008/09 159 CommunitiesandLocalGovernment.StatutoryHomelessnessOct-Dec2009,England 160 Broadway(2009)StreettoHome:AnnualReportforLondon 161 BroadwayquarterlyreporttotheLondonMayor’sRoughSleepingDeliveryBoard,May2010;CHAINdatabase.400 to800rangereferstonumberofpeopleseensleepingroughin2009/10thathavebeenseensleepingroughonmultiple occasionsfortwoormoreconsecutiveyears.Theseindividualsmaynotbeincludedinaone-offstreetcountformany reasonse.g.temporarilyoutofareaorinprison,andthereforeCLGannualtotalstreetcountfigureislikelytoproducea lowerestimateofroughsleepinglevels 162 Forexample,23%ofcarehomesforolderpeoplewereratedasadequateorpoorbytheCareQualityCommission intheyeartoMarch2009,CareQualityCommission(2009),Thequalityandcapacityofadultsocialcareservices 163 CommunitiesandLocalGovernment(2009)SurveyofEnglishHousing,2007/08 164 CommunitiesandLocalGovernment(2009)SurveyofEnglishHousing,2006/07 165 HomeOffice(2009)CrimeinEnglandandWales2008/09.Volume1FindingsfromtheBritishCrimeSurveyand policerecordedcrime 158 58 State of the nation report: poverty, worklessness and welfare dependency in the UK Concentrations of disadvantage in communities Deprived areas are identified using the Index of Multiple Deprivation, which is a summary measure of area disadvantage based on indicators of employment, income, crime, health, education, housing and environment. This shows that disadvantage is consistently concentrated in a number of neighbourhoods, many clustered in urban areas (Figure 5.6). In particular: • 50% of all children living in families reliant entirely on benefits and 42% of people out of work for mental health reasons live in the 20% most deprived neighbourhoods; • 27% of lone parents out of work are found in the 10% most deprived neighbourhoods; and • there is a correlation between individuals with multiple disadvantages and deprived areas. Around two out of five people who experience five or more disadvantages are concentrated in the 10% most deprived neighbourhoods.166 The greater the number of disadvantages, the more likely individuals are to be concentrated in the most deprived areas. Figure 5.6: English Index of Multiple Deprivation 2007 166 Based on selected disadvantage indicators using the Annual Population Survey, and Index of Multiple Deprivation 2007 (LSOA level). Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK 59 Chapter 6: Multiple disadvantage In 2010, multiple disadvantage remains a significant problem in the UK with 5.3 million people suffering and 3.7 million doing so persistently. Thischapterexploresthenatureandextentof multipledisadvantageintheUK.167Itisoften theinteractionoftheproblemsexploredin previouschaptersthatcanleadtoentrenched, deep-seateddisadvantagethatcancutpeopleoff fromopportunitiestoparticipateinthenormal activitiesofsocietyandleadtoalifetimeof dependencyandwastedpotential.Forexample, theexperienceofaseriousmentalhealth problemcanpreventsomeonefromgettinga job,whileanex-offenderwithnoqualifications mightalsohaveproblemswithdrugsandalcohol. Multipledisadvantagealsocoststhestate:it isestimatedthatafamilywithfiveormore disadvantagescostspublicservicesbetween £55,000and£115,000peryearasaresultofits useofmultipleservices.168 167 Thischapter: • summarisesevidenceontheprevalenceof multipledisadvantageandtrendsovertime; • examinesthepersistenceofmultiple disadvantage;and • identifiesgroupsmostatriskofmultiple disadvantage,includingintergenerational disadvantage. Itillustratesthattherehasbeenlittleprogress inreducingthenumbersofpeoplewhosuffer themostmultipledisadvantage.Over60%of theindicatorsinoneofthemainannualreports ofpovertyanddisadvantageshoweitherno progressoratrendinthewrongdirectionin thepastfiveyears,169whileover5millionpeople (11%)sufferfrommultipledisadvantagesand3.7 milliondosopersistently.170 Multipledisadvantagereferstoindividualsorfamilieswhoexperiencetwoormoredisadvantages,suchaslow income,poorhealthandnoqualifications. 168 HMTreasury.(2007)AimingHighforChildren:SupportingFamilies. 169 MacInnes,Kenway&Parekh(2009).Monitoringpovertyandsocialexclusion2009.JosephRowntreeFoundationand NewPolicyInstitute. 170 AnalysisbyStrategyUnitandSocialExclusionTaskForce. 60 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK Prevalence of multiple disadvantage and trends over time Althoughinsomeareastherehasbeena reductionindisadvantageoverthepast10–15 years,inrecenttimesprogresshasslowedor stopped,andinotherareastrendshavemoved inthewrongdirection.TheOpportunity for All reportsuggeststhataround40%ofindicators havenotmovedinapositivedirectioninrecent years.171TheMonitoring Poverty and Social Exclusion 2009reportsuggestsevenlower levelsofprogress,withover60%ofindicators notmovinginapositivedirectioninthepast fiveyears(Figure6.1),172including(assetoutin earlierchapters): • peopleonverylowincomes; • incomeinequality; • childreninlow-incomeworkingfamilies; • youngadultunemployment;and • 16–19-year-oldsnotineducation, employmentortraining. Figure 6.1: Over 60% of indicators of disadvantage have shown either no progress or a deterioration in the past five years No Change 30% Worsened 37% Improved 33% Source: Derived from Monitoring poverty and social exclusion 2009, Joseph Rowntree Foundation and New Policy Institute 171 DepartmentforWorkandPensions(2007).OpportunityforAll:Indicatorsupdate2007. MacInnes,Kenway&Parekh(2009).Monitoringpovertyandsocialexclusion2009.JosephRowntreeFoundationand NewPolicyInstitute. 172 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK 61 Newanalysisfromhouseholdsurveydata confirmstheprevalenceofmultipledisadvantage intheUK.173 • Onawidedefinitionofdisadvantage, 5.3millionpeople(11%ofalladults)are disadvantagedatanyonetimeinthree ormoreofsixareas(education,health, employment,income,socialsupport,housing andlocalenvironment).174 • Onatighterdefinition,1.2millionpeople (2.5%ofalladults)aredisadvantagedatany onetimeinthreeofthesesixareas.175 Persistence of multiple disadvantage Itisclearthatasizeableproportionofthose sufferingmultipledisadvantagedosoovertime. Recentestimatesshowthat:176 • onawidedefinition,3.7millionpeople(7.7% ofthepopulation)aredisadvantagedinthree ormoreofsixareas(education,health, employment,income,socialsupport,housing andlocalenvironment)forfiveormoreyears outof10; • onatighterdefinition,flowsinandoutof severedeprivationarelimited:800,000(1.7%) aredisadvantagedinthreeofthesesixareas forfiveormoreyearsoutof10onatighter definition;and • only14%ofthemostmultiplydisadvantaged familiesarelikelytobedescribedas‘not disadvantaged’ayearlater.177 173 Those at risk of multiple disadvantage Thosemostatriskofmultipledisadvantagein keylifestagesare: • familieswithchildrenwithsomeorallof thefollowingcharacteristics:loneparents, thoselivinginsocialhousingorrented accommodation,thoselivinginlargefamilies (i.e.thosewiththreeormorechildren),those whohaveayoungmother,thosewhohave ablackmother,andthosewholiveinurban andthemostdeprivedareas.Familieswith thesecharacteristics,aswellasthoseinwhich oneorbothpartnershasaphysicaldisability, limitingillnessormentalhealthproblem, arealsomostatriskofpersistentmultiple disadvantage;178 • youngpeopleaged16–24withsomeorallof thefollowingcharacteristics:females,those livingindependentlywiththeirownchildren, thoselivingwithaloneparent,socialand privaterenters,andthoselivinginmore deprivedareas;179 • working-agepeoplewithoutdependent childrenwithsomeorallofthefollowing characteristics:women,olderworking-age people,thosefrommanualoccupational groups,home-makers,earlyretirees,sick anddisabledpeople,thosewhonever married,andthoselivinginsingle-person households;180and AnalysisbyStrategyUnitandSocialExclusionTaskForceusingBHPS2007data. Thewidedefinitionofmultipledisadvantageusesthefollowingindicators:eitherliveinaworklesshouseholdorare unemployed;areeitherinincomepovertyormaterialdisadvantageorfinancialstress;lacksocialsupport;eitherhave poorphysicalormentalhealth;eitherliveinpoorhousingorapoorlivingenvironment;havelowqualifications. 175 Thetighterdefinitionofmultipledisadvantageusesthefollowingindicators:liveinaworklesshousehold;arein incomepovertyandexperiencematerialdisadvantage;lacksocialsupport;aredisabled;liveinpoorhousingandapoor livingenvironment;havenoqualifications. 176 AnalysisbyStrategyUnitandSocialExclusionTaskForce,usingBHPS2007data. 177 Oroyemi,Damioli,Barnes&Crosier(2009).Understandingtherisksofsocialexclusionacrossthelifecourse: FamilieswithChildren.SocialExclusionTaskForce,CabinetOffice.AnalysisbyStrategyUnitandSocialExclusionTaskForce. 178 Ibid 179 Cusworth,Bradshaw,Coles,Keung&Chzhen(2009).Understandingtherisksofsocialexclusionacrossthelife course:Youthandyoungadulthood.UniversityofYork. 180 Fahmy,Levitas,Gordon&Patsios(2009).Understandingtherisksofsocialexclusionacrossthelifecourse:Working ageadultswithoutdependentchildren.UniversityofBristol. 174 62 Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK Figure 6.2: Children from multiply disadvantaged families are much more likely to be multiply disadvantaged themselves than those from families with no disadvantages % of children with three or more disadvantages 30% 25% 20% 15% 10% 5% 0% None 1 2 3 to 5 6 or more Number of parent disadvantages Source: Understanding the risks of social exclusion across the life course: Families with Children. Social Exclusion Task Force, Cabinet Office, 2009 • olderpeopleaged60andoverwithsomeor allofthefollowingcharacteristics:thoseaged 80yearsandover,thosewholivealoneand thosewhohavepooraccesstoservices.181 Therearealsoanumberofgroupswho aregenerallynotrepresentedinhousehold surveysbutwhoaresignificantlymorelikely toexperiencemultipledisadvantages.These groupscanbeparticularlyvulnerableandinclude thefollowing,someofwhommayleadchaotic lifestyles: 181 • thosewithseriousandenduringmentalhealth problems; • thosewithlearningdisabilities; • thosewithphysicaldisabilitiesorlimiting illnesses; • thehomeless; • thosewithdrugandalcoholproblems; • offendersandex-offenders;and • childrenincareandcareleavers. Becker&Boreham(2009).Understandingtherisksofsocialexclusionacrossthelifecourse:Olderage.National CentreforSocialResearch. Stateofthenationreport:poverty,worklessnessandwelfaredependencyintheUK 63 Intergenerational disadvantage Thoseatheightenedriskofmultipledisadvantage alsoincludechildrenwhogrowupinhouseholds whereoneorbothparentsexperience disadvantagethemselves.Thisisoftenreferred toastheintergenerationaltransmissionof disadvantage,wherebydisadvantageispassed fromonegenerationtothenext,potentially 182 leadingtoadamagingcycleofdisadvantage. AsFigure6.2makesclear,justoveraquarter (27%)ofchildrenfromfamiliesexperiencing sixormoreparent-relateddisadvantagesalso havethreeormoredisadvantagesthemselves, comparedwithonly4%fromfamilieswithno parent-relateddisadvantages.182 Oroyemi,Damioli,Barnes&Crosier(2009).Understandingtherisksofsocialexclusionacrossthelifecourse: FamilieswithChildren.SocialExclusionTaskForce,CabinetOffice. Cabinet Office 22 Whitehall London SW1A 2WH Publication date: May 2010 © Crown copyright 2010 You may re-use this document/publication (not including the Royal Arms and other departmental or agency logos) free of charge in any format or medium. You must re-use it accurately and not in a misleading context. The material must be acknowledged as Crown copyright and you must give the title of the source document/publication. Where we have identified any third party copyright material you will need to obtain permission from the copyright holders concerned. This document/publication can also be viewed and commented on at our website www.cabinetoffice.gov.uk/publications/state-of-nation-report.aspx The material used in this publication is constituted from 50% post consumer waste and 50% virgin fibre Ref: 401172 / 0510
© Copyright 2024