Poverty is theft

The Joseph Rowntree Foundation this week set out a radical new strategy to solve poverty. Ian Kirk-Smith reports.

The nineteenth century French radical Pierre-Joseph Proudhon famously coined the slogan ‘property is theft’ in his book What is property? Or an Inquiry into the Principle of Right and of Government.

Why not ‘Poverty is theft’? It is the theft of hope. It is the theft of dreams and the wonderful enthusiasm of youth. It is an appalling theft of human potential.

The scandal of increasingly high levels of inequality in British society and the intolerable pressure being placed on the poorest and most vulnerable to pay more for everyday goods and services were highlighted this week in an important new document launched by the Joseph Rowntree Foundation (JRF): We Can Solve Poverty In The UK.

The document offers a radical solution to a similar challenge to that faced by Proudhon – fixing an economic system that leaves too many behind and destroys their hopes of a decent, secure and fulfilled life.

The JRF believes that Britain needs a new ‘long term deal’ – between governments, business and the public – to solve poverty in a generation.

It is an ambitious vision, a radical vision, and a vision rooted in Quaker tradition and testimony.

The Foundation launched a five-point plan on Tuesday morning to solve poverty by 2030. The comprehensive strategy aims to solve poverty across all groups in the UK. It comes from years of research and rigorous academic work. It has vision, practical muscle, and comes from a strong ‘evidence based’ culture at JRF.

Ending the ‘poverty premium’

The first priority, JRF argues, is a reboot of markets towards a more responsible capitalism that benefits people on low incomes. The Foundation is calling on government, regulators and companies to work together to end the ‘poverty premium’, where people on low incomes pay more for goods and services such as fuel and credit.

Households in poverty are four times more likely to be behind with at least one bill and the ‘poverty premium’ can add as much as ten per cent to a minimum household budget. The ambitious JRF strategy sets out a target where the first generation of children starting school this year enter an adulthood in 2030 in a UK where:

 
• No one is ever destitute;
 
• Less than one in ten of the population are in poverty at any one time; and
 
• Nobody is in poverty for more than two years.

Launching the strategy earlier this week in Westminster, Julia Unwin, chief executive of JRF, said: ‘It’s shameful that in the twenty-first century thirteen million people in our wealthy country are living in poverty. A new “long term deal” to solve poverty is urgently needed so the first generation of “Brexit children” starting school this week grow up in a country where no matter where they live, everyone has a chance of a decent and secure life. Previous approaches have been too piecemeal, failing to deal with issues such as the high cost of living.’

Julia Unwin argued that poverty divides communities and generations. She said: ‘It harms people’s potential and strains families; it drains the public purse and holds back our economy’ and she referred to the promise made by David Cameron to ‘make Britain work for everyone and reform capitalism.’

As Westminster reconvenes this week, Julia Unwin urged the present prime minister ‘to deliver on this promise’ and said: ‘If we don’t take action now poverty is set to increase for children and working-age adults. Poverty is the biggest social evil of our time – we must act now.’

‘Poverty costs the UK £78 billion a year, £1,200 for every person and equivalent to four per cent of the UK’s GDP. £69 billion of this figure is spent on public services needed to pick up the pieces dealing with poverty – £1 in every £5 spent on public services. A further £9 billion is lost tax revenue and additional benefits spending due to the knock-on effects of poverty later in life.’

The document considers the nature of poverty today, outlines causes and solutions, and looks at the key groups who need to work together to solve it: national and local governments; businesses and employers; service and housing providers; investors and philanthropists; and citizens and communities. JRF’s strategy calls for a coordinated approach.

The human toll of poverty

New polling, which coincides with the launch of We Can Solve Poverty In The UK, shows that an overwhelming majority of the public want the UK to get to grips with high levels of poverty. The public sees poverty as ‘everybody’s business’ and ninety per cent believe the national government has an important role to play in dealing with it.

The JRF strategy describes the human toll of poverty on people from ‘cradle to grave’:

• Among children, those born into poverty and starting school this week are some way behind their richer peers. By age three, a child born into poverty is significantly behind in their cognitive development – a gap that widens by the time they are five.
 
• Among working age adults, four out of five low-paid workers fail to escape low pay completely after ten years.
 
• After retirement, someone born in a deprived neighbourhood will die an average of nine years earlier than a child born in a wealthier area.

Five key areas of action

To solve poverty, JRF’s plan focuses on five key areas of action:

1. Boost incomes and reduce costs:

• End the poverty premium – where people in poverty pay more for everyday goods and services
 
• Invest an extra £1 billion per year to build 80,000 genuinely affordable homes to rent and buy in England each year

2. Deliver an effective benefit system:

• Reboot Universal Credit to make work pay and provide a strong safety net
 
• Reform job centres to support people into secure and better-paid work – not just any job

3. Improve education standards and raise skills:

• Improve educational attainment among children growing up in poverty
 
• Double investment in basic skills training, so five million more adults have basic literacy, numeracy and digital skills by 2030

4. Strengthen families and communities:

• Radically overhaul the childcare system to give children the best start in life and to make work pay for parents
 
• Support strong families and relationships by establishing a family hub in every area

5. Promote long-term economic growth benefiting everyone:

• Employers support and train their lowest paid staff to get on at work into better-paid and secure jobs
 
• Give mayors and town halls the incentives, powers and budget to help create more and better jobs and connect people in poverty to economic opportunities

Teaming up

To mark the launch of the strategy, JRF has teamed up with Big Society Capital to raise up to £20m of social investment to tackle the ‘poverty premium’. The initiative will support charities and social enterprises in developing solutions.

Cliff Prior, CEO of Big Society Capital, said: ‘How can it be that thousands of people living in poverty pay more than £1,000 extra each year for even the most vital services such as gas, electricity and loans?

‘It’s a scandal that must be ended – and we believe that’s possible’ he said. ‘We want to prove that people on lower incomes can be served fairly, and to encourage companies, government and regulators to do the same.’

In the comprehensive strategy contained in We Can Solve Property In The UK, JRF are realistic. The organization admits that a solution will not be quick or easy, but states positively: ‘with vision, commitment and collaboration, we can all play a part in creating a society in which prosperity is more equally shared and the worst-off people and places are not left behind.’

Friends in Britain should read this powerful report. They need to put their weight behind it.

Further information: www.jrf.org.uk/solve-uk-poverty

Twitter: @jrf_uk

Conversation: #solveukpoverty

---

Comments

am i right in thinking that the title of the jrf document should contain the word ‘poverty’ not ‘property’?

a definition of the word ‘poverty’ should be available to anyone attempting to establish improvements.  my husband and i live very frugally, do not require ‘loans’ to survive, and look upon ‘sky’ tv as an indulgence we can’t afford.  we had the good fortune to grow up in modest households where debt was frowned upon.  our modern culture doesn’t encourage living within one’s means.  perhaps this is where changes need to be made.

By triplejay on 8th September 2016 - 15:44

---

there is a problem with the word poverty as it has come to be defined in a monetary way. I have lived mostly in Africa where a village might not have electricity but they sweep the dust daily from their doors and walk a while to collect water. poverty arrives at their doors with political insecurity, guns, wars, fear and a fragmentation towards the cities. I am glad for your definition of poverty that includes ‘losing hope’. ‘It is the theft of hope. It is the theft of dreams and the wonderful enthusiasm of youth. It is an appalling theft of human potential’. very often consumerism creates this poverty - we need affordable housing but without hope and a belonging and meaning we create our own world of poverty. WE NEED TO LOOK BEYOND A MONETARY DEFINITION

By bridgid hess on 8th September 2016 - 17:50

---

Please login to add a comment