Britain must use developing country standards to identify – and address what actual poverty is.
With the advent of programs such as Channel 4’s Benefits Street, talk of welfare cuts and major anti-poverty campaigns underway, one would think that the crux of such matters – what British poverty actually is – had been adequately resolved.
The British understanding of ‘poverty’ has led every party to adhere to what is arguably a morally bankrupt understanding of the term.
Each anti-poverty organisation in the UK campaigns on the basis that ‘low-income’ is interchangeable with ‘poverty’. After probing the work of anti-poverty politicians or media outlets, it appears that few seem to correctly articulate what poverty or deprivation really is. Little wonder, then, that it is a huge political football that no party gets right.
The UK government defines ‘low-income’ as ‘poverty’ i.e. those individuals that receive less than 252 GBP BHC per week net disposable income, excluding housing costs: this in itself is extraordinary. Many agree – with some anti-poverty campaigners seeking to go further by stating that below 220 GBP/week AHC constitutes the ‘poverty line’ – and that it is not a merely low-income category. Whilst a tenuous case can be made for the consideration of such sums – which amount to 60% of the UK’s median income to be thought of as ‘poverty’, in practice, this is a nonsense both in relative and absolute terms. Not least that it sits apposite to discussions of social exclusion in a country that is highly developed. In short, only 3pc of households in the UK are materially deprived. That is less than the 7pc of households afflicted by drug use. The number of pensioners with low-incomes have declined to their lowest level in 30 years, as with children in low-income households in 25 years respectively.
Whilst some parties advocate that the ‘poverty line’ is fit for purpose, the Joseph Rowntree Foundation policy group, with allies including Oxfam, the Child Poverty Action Group and others, still rely upon the same circular datasets and campaigns to make its headlines.Some do argue, properly, for measures of social exclusion to be included into what is an already tenuous British ‘poverty’ definition – an international practice, but despite that, all have failed to seriously adopt a credible line a way that would satisfy a realistic, contextual and relevant definition of poverty.
The country is arguing over a definition that is inaccurate, doesn’t correspond to international standards and isn’t representative of the actual cost of living. That is also why many households classified as in ‘poverty’ or ‘low-income’ actually – in the now-forgotten words of a lone Joseph Rowntree researcher – ‘experience high standards of living’.
UNFIT BY INTERNATIONAL STANDARDS
What compounds this highly problematic issue is that the basket of goods relied upon to weigh the poverty index does not correspond to international standards. The only index that does, the Office of National Statistics’s recent RPIJ, has not been adopted – where over a 16 year period the current index is 7 per cent higher than it actually should be. More evidence that British poverty is not at all what it appears to be.
COST OF POVERTY FOR BRITISH LEFT OR RIGHT?
This isn’t a concern directed at one group or political party. The cost to the poor is not, for instance, understood by the Labour Left. By overstating or inaccurately identifying the number of deprived living in Britain, an extraordinary opportunity cost exists where fewer funds are allocated to those in actual need –for instance those with disabilities or vulnerable pensioners.
It also adversely affects public opinion that could be properly, permanently convinced of the need for benefits for those in genuine need. For those on the putative Tory right, an accurate depiction of deprivation and social exclusion would force greater scrutiny and accountability in contentious political areas such as benefit cuts, where spurious claims as to acute or genuine need would cease. Contentious claims as to where benefits are spent – ie the preservation of non-means tested fuel payments to pensionable millionaires would probably be scrapped. For every penny spent on those not in need, the gap between those genuinely deprived is less likely to be breached. Britain does have the equivalent of its bottom billion – those who can be better helped if they are correctly targeted.
A serious debate must be held to what constitutes social exclusion and poverty in the UK – before any decides whether or not certain groups are correct to receive whichever benefits they do. Consensus cannot be reached if the ‘poverty line’ itself in the context of the UK is redundant. The UK is wholly divorced from the international discourses on poverty. And this in turn has clear implications in generating an anti-competitive culture. Developed nations have lost sight of what deprivation is and that has manifold political and economic consequences.