Achieving Our Potential?: Tackling Poverty During the

Recession

January – March 2009

Achieving Our Potential ?Tackling Poverty During the Recession

Introduction

Current trends in poverty – where we have got to, and the challenge ahead

Achieving Our Potential – an adequate response to poverty in Scotland?

Tackling Poverty in Recession – what can be done?

About the Poverty Alliance A Scotland-wide independent network of groups,

organisations and individuals working together to tackle poverty

Focus on working alongside people in poverty to ensure their experience is heard by policy makers

Lobbying and campaigning for change: current focus on living wages, welfare reform and child poverty

Current Trends in Tackling Poverty

Where have we got to in the fight against poverty?

Focus on 2 key areas Income

Out of work poverty ‘In-work’ poverty

Income Inequality

Incomes: out of work– Key Issues

Inadequacy of out of work incomes Large decline in pensioner poverty but trend

slowing Decline in child poverty has stopped in Scotland

over the last three years and risen in UK Poverty amongst working age adults without

children increased over last 10 years Now single largest group of poor people. Their

welfare benefit values have declined by 20% relative to wages since 1997

Incomes

Incomes

Incomes out of work

Incomes & In-Work poverty – Key Messages

Rise of ‘in-work’ poverty 50% of children in poverty are in working households More working age adults in poverty are in work than out

of work Most of increase of ‘in-work’ poverty has been amongst

those without dependent children Labour market ‘churn’ 50% of people making new JSA

claim were claiming 6 months before. Same as decade ago

‘Work first’ approach is failing some groups esp. childless adults

Incomes & In-Work poverty

Incomes & In-Work poverty

Incomes & In-Work poverty

Income Inequality The poorest tenth of the population have, around

2% of Scotland's total income, second poorest tenth have 4½%. 

The richest tenth have 27% and the second richest tenth have 15%. 

Scottish Government's new focus on the bottom 30% (Solidarity Target) should benefit pensioners and lower-income working families.

Income Inequality

Inequality: Bottom 30%

Bottom 30%

Achieving Our Potential

“The Framework sets out further priorities for action and investment to deliver improvement in four areas”

1. Reducing income inequalities2. Introducing longer term measures to tackle

poverty and the drives of low income3. Supporting those experiencing poverty or at

risk of falling into poverty4. Making the tax and benefits system work better

for Scotland

1. Reducing income inequalities

Maximising the potential for people to work

• by removing barriers to work including provision of accessible child care

• financial literacy skills during the transition to work; develop plans for employability for BME communities

Maximising Income for All• New income max programme in 2009-10, 2010-2011• Focus on older people and other key groups• Additional £7million funding

Do the actions match the rhetoric?

2. Longer term measures to tackle poverty Providing children with the best start Supporting broader efforts to deal with

health inequalities Promoting equality and tackling

discrimination Affordable housing Regenerating disadvantaged communities

3. Supporting those experiencing poverty Create a fairer local taxation system Address fuel poverty Introduce the new Energy Assistance

Package for people on low incomes; press UK Government to do more on winter fuel allowance and on social tariffs;

Promote financial inclusion & address stigma

4. Making the Tax and Benefits System Work Better for Scotland

System must be fair, transparent and sympathetic to those in poverty.

Financial benefits of working must be significant and sustainable.

Transitional support must be responsive, quick and effective.

Benefits must provide a standard of living which supports dignity, freedom and social unity.

Administration must be swift, streamlined and customer focused.

1. Reducing Income Inequalities: Making Work PayAction/Policy New Existing Planned Nature of

actionFunding Timescale

Additional investment in ILA

X Training Yes No

Press UK Govt to transfer responsibility for tax and benefits

X X Lobbying N.A. No

HIE will support rural business and diversification

X Economic development

Yes, ongoing No

More action to address low pay in the public sector

X Research No 2009

Campaign to raise awareness of statutory workers rights

X Awareness raising

Yes 2009-10

Recession and Poverty: Key Questions

How do we keep the current anti-poverty agenda relevant during the recession?

Does the rhetoric match the reality?

What actions do we need ?

Achieving Our Potential?: Tackling Poverty During the

Recession

January – March 2009

Assessing Our PotentialKey Strengths:

Recognition that low income is at the heart of the experience of poverty

Understanding that income inequality is problematic in itself, not merely a benign outcome of the market

Identifies a range of clear, practical actions that can be delivered by local and national government, and by the voluntary sector

Strong on the structural causes of poverty Makes important statements in relation to the way the

benefit system should operate

Assessing Our PotentialKey Weaknesses: No recognition of impact of recession Few new resources Little recognition of the importance of place Very weak monitoring and evaluation processes Too many actions/plans still to be developed Pick and mix approach to policy development No timescales for review

Responding to the Recession The Scale of the Recession in Scotland Growing view that Scotland will be hit

harder than UK Net job losses of 37,000 in 2009 and

16,000 in 2010 Total job losses could exceed 160,000 in

2009 Both service and manufacturing sectors

will be hit

Recession and Poverty: Some areas for action• A review of JSA benefit levels as part of

‘fiscal stimulus’• Benefit maximization campaigns

coordinated by UK & Scottish Government

• Revision of the 16 hour rule to enable more people to undertake training whilst receiving benefits

• Support for apprentices facing redundancy

Recession and Poverty: Some areas for action• Moratorium on elements of current

welfare reform programme

• Increased investment into voluntary sector and social economy

• Increase in the national minimum wage

• Action to support a living wage in key sectors of the economy