From Local to National: tackling poverty during austerity Jan – Feb 2012

Introduction Seminar Programme and Aims: oThree sessions looking at key areas: trends in poverty, the policy responses, and the local picture oEach session gives an introduction to key trends and policy developments in each area. Focus is on discussion in each session: hearing how the trends are impacting on your work and community. oBy the end of the seminar we want to have a better sense of key priorities for tackling poverty in the coming period oA 'mini-manifesto' will be produced and will be used in campaigning activities during the local elections

Income Poverty in Scotland  Total of 870,000 people living in low income h/h in 2009/10  Child Poverty continued to decline in period 04/05-09/10 (although only slightly)  Important to note that CP fell when unemployment was rising

Income Poverty in Scotland  Proportion of adults in poverty showing increase since 2006  Pensioner poverty has fallen significantly over the last 10 years. But showed an increase in year to  New indicator shows that around 10% of pensioners are 'materially deprived'

Inequality in Scotland  Income inequality has increased in Scotland since 2004/05: share of total income going to top 30% has increased from 50% to 54%. That going to the bottom 30% has fallen from 14% to 13%  Scotland is slightly more equal than the UK, but only Portugal and Latvia are more unequal in Europe  In relation to unequal outcomes, Scotland has lower life expectancy than all more equal countries, only Latvia and Lithuania do worse  The income of the average UK household is almost 2.5 time greater than that of bottom 10%  The top 10% has 40% of all property wealth and 60% of all asset wealth.

 After falling, unemployment has begun to rise again, now stands at around 8.2%, just over 2.5M. Higher in Scotland at 8.6%  Work-less households now at a 10 year high (370,000)  Unemployment amongst women is at a 23 year high  Youth unemployment now 22.6% (1.04 million)  Highest level of 'forced' part-time workers, 1.26 million, since 1992 Unemployment

 Overall employment rate in Scotland is now 70.9% and 70.3% in the UK  In % of women and 14% of male employees in the UK were paid less than £7.50 an hour. Down by 11% and 3% respectively since Most of the fall came up to 2006  Around 5.1 million people were low paid in 2010, with around 46% in wholesale and retail. 45% of part-time workers were low paid  Still significant ‘churn’ in the labour market. ½ of all men and 1/3 of all women making a new claim for JSA were claiming less than 6 months before Employment and In-work Poverty

 During recession average incomes increased. However during h/h incomes feel back to levels  Poverty amongst pensioners and children fell during recession, due to changes in tax & benefits  Poverty is predicted to increase by 800,000 by  Fuel poverty predicted to increase from 5.5M h/h to 6.4M in 2011 Key Messages

 Poverty is not just a feature for some groups – all now affected with working age poverty increasing. The stagnating level of welfare benefits for those without children is key  In-work poverty is a real problem: the decline stopped in Not just about pay, but also the quality, availability and distribution of work.  Clear gender dimension to both poverty statistics and labour market disadvantage  Welfare reform cannot solve the problem. It is not incentives but lack of work that is the issue. Key Messages

Discussion  How are these trends reflected in your work/community?  What other issues are important? (e.g. spending, housing, etc)

From Local to National: The policy context

Policy context  UK: Welfare Reform  Welfare Reform  Austerity  Scotland  Employability  Infrastructure

Strategic Approaches to Poverty?  There is less emphasis on a strategic approach to addressing poverty at the UK. Only in child poverty policy is a strategy set out. No NAP, no ‘Opportunities for All’, only welfare reform  In Scotland, anti-poverty framework, Achieving Our Potential, launched in No plans for review  Child poverty, fuel poverty, regeneration, health inequalities, all in place or being reviewed  Emphasis in Scotland and UK is on localism.  Makes the process of accountability more difficult: are targets being met, are policies effective?

Austerity in the UK  UK Coalition key aim is deficit reduction. Goal is to cut structural deficit to zero by 2015  Severe cuts (£81 Billion) are being made across all parts of the public spending, except health and international development by  Additional £18 Billion is being taken out of welfare budget alone. Some benefits frozen, more conditions placed on them, new benefits will be introduced Significant cuts in public services will have a severe impact on the poorest – analysis suggests that poorest decile will lose equivalent of 21% of household income compared to just 3% for the top 10%

Welfare Reform 1. £18 billion of cuts Welfare Reform Bill, key aims:  Employment as the key route out of poverty  Simplification  Making work pay  Delivering ‘fairness for claimants and taxpayers’ ie focus on fraud and conditionality

Key Welfare Changes Children  Health in Pregnancy Grants abolished  Maternity Grant restricted to first child  Child Benefit frozen for three years  Tax credit changes  Increased poverty for those with young children, especially lone parents  General changes  Benefits up rated by CPI instead of RPI (expect Pension Credit)

Key Welfare Changes Tax credits  New calculations - overall cut for working claimants (current and forthcoming 2012) Working tax credit (WTC) –  Basic and 30 hrs elements frozen for 3 years,  Childcare help reduced from 80% to 70%,  Couples with children must work at least 24 hours, (April 2012)  50+ element scrapped (April 2012) Child tax credit (CTC)  Baby element in child tax credit (CTC) scrapped

Scottish Context  In Scotland, Achieving Our Potential, should set out the broad approach to addressing poverty  Targets to reduce income inequality and the proportion of individuals remain in place, although it is not clear what specific policies are in place to reach these targets  Key policy areas include employability, infrastructure investment, health inequalities, fuel poverty and regeneration  New emphasis on community led responses to poverty, and particularly on the assets of individuals and communities

Employability & Infrastructure  Key approach remains through the Workforce Plus strategy that aims to co-ordinate local partners to improve employability  Particular emphasis on youth unemployment: creation of 25,000 modern apprenticeships in 2011, the Opportunities for All program to provide training and learning to all year olds  Infrastructure investment is going targeted to help create jobs. Expected to invest in 50 projects over the next Parliament  All large projects will be required to have social clauses (i.e. apprenticeships included)

Key messages  Welfare reform will continue to dominate the anti- poverty policy context for the foreseeable future. This will mean an increasing importance for advice services  Continuing importance of local approaches to addressing poverty: however most local Single Outcome Agreements do not emphasise poverty  Role of the 3 rd sector will be crucial in supporting people during the next recession. How can this role be delivered in the context of cuts  Increasing impact of stigma on people living in poverty during recession: what role for local and national players in Scotland to reduce this?

Discussion  How do these policies impact on your work/community?  What other policy areas are having an impact  What is the ‘local’ response to these policies?

Click to edit Master subtitle style 30/01/12 ‘From the Local to the National Tackling Poverty during Austerity’ Milind Kolhatkar – Edinburgh Voluntary Organisations’ Council

Click to edit Master subtitle style 30/01/12 Three levels: Sub-Local Local Authority Scotland/UK

Click to edit Master subtitle style 30/01/12 Sub-Local: The 'political' left Transitions (type) Groups #Occupy

Click to edit Master subtitle style 30/01/12 Local: SOA 3 Economic Development Third Sector

Click to edit Master subtitle style 30/01/12 National: 'Reform' Single Fire Service & Police Service Integration of Health & Social Care Review of Community Planning 'Strategic Development' Achieving a Sustainable Future Change Funds/Preventative Spend Community Empowerment 'The Known Unknowns' Independence Referendum It's the Economy, Stupid!

Click to edit Master subtitle style 30/01/12 ‘From the Local to the National Tackling Poverty during Austerity’ Discussion

 What for you are the key challenges ahead for tackling poverty?  What actions should local people/organisations take to address them  Who should you work with to take these forward?