Austerity, Poverty, Advice and Support Steve Cullen Citizens Advice Warrington

Austerity Difficult economic conditions created by Government measures to reduce public expenditure The condition of living without unnecessary things and without comfort with limited money and goods.

Poverty Definitions of poverty really matter. They set the standards by how we determine whether the living conditions of the poorest in society are acceptable or not. They are essential for determining questions of fairness.

Impact of Poverty Education Health Communities Poverty damages. It damages childhoods, it damages life chances and it damages us all in society.

who lives in poverty more likely to be:- Families with children Lone parents People with a disability Certain Ethnic minorities Workless families or households.

Causes of poverty Worklessness Low paid work Inadequate benefits

definition Widely accepted that poverty is relative to the place and time you live in. Anyone below 60% of median income thresholds Currently £26500 per annum nationally. The national minimum wage is targeted to reach 60% of median earnings by 2020.

Tax credit debate It is Argued that they have spiralled out of control It is Argued that they subsidise low wages and employers. However they also encourage a work ethic. They help to tackle worklessness They help people who can only work part time. They help families with children and reduce child poverty They reduce inequalities

Will workers be better off ? Govt said that following changes to minimum wage and tax credits a typical family with someone working full time will be better off by £2000. per annum. The I.F.S. Says that welfare cuts in the summer budget will leave some of Britain’s poorest families £1300 per year worse off.

The people who most benefit from higher national minimum wage will be single, childless or married to someone on higher earnings, and so will not be affected by welfare cuts. Unequivocally, tax credit recipients in work will be made worse off on average. The cost of the national minimum wage, coupled with increases in personal tax allowances and child care for three and four year olds = £5.5bn This does not match the £12bn the treasury is saving from cutting the welfare bill.

Policy impact on advice and support 2008 James Purnell MP launched the new ESA regime Jim Knight MP said:- ‘it is an enabling reform and it has been quite popular’ In 2009 Cit A dealt with 100K ESA problems 2010 Iain Duncan Smith said ‘the system we inherited contains some flaws that undermine its effectiveness. We have moved to put this right. In 2010 Cit A dealt with 200K ESA problems IDS said the system has markedly improved. In 2011 Cit A dealt with over 250K ESA problems IDS again ‘ strenuous efforts to improve the WCA are making a difference. In 2012 Cit A dealt with 420K ESA problems 2013 Mike Penning MP. The system we inherited wasn’t working properly. We will make sure we put this right so that it is fair to claimants and fair to tax payers. In 2013 Cit A dealt with over 430K ESA problems.

Poor policies disproportionately affect not only individuals families and communities but those third sector organisations providing support to those who are: poor sick hungry disabled complex/troubled families victims of domestic violence older people unemployed socially and financially excluded homeless

Building Resilience The ability to become strong, healthy, or successful again after something bad happens. An ability to recover from, or adjust easily to, misfortune or change. Tough times don’t last, tough people do.

“ its not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change.” Charles Darwin