Unequal Risks of Poverty

Morag Gillespie,

Scottish Poverty Information UnitSchool of Law and Social Sciences,

Scottish Poverty Information Unit• Established 1995

• Applied policy research unit in School of Law and Social Sciences at GCU

• In pursuit of the ‘common weal’

Poverty is caused by the distribution of opportunities and resources rather than the lack of resources in society. Poverty can therefore be reduced or eradicated

www.povertyinformation.org

Unequal Risks of Poverty Cycle of unemployment and low pay

Structural inequalities

Recession as equalising factor?

Low pay, poverty and risk

Recovery – who pays, who spends?

What is poverty?Definitions used

absolute poverty: below 60% median income in 1998/99, adjusted for price inflation

relative poverty: below 60% population income in the same year

Cycling in and out of work

Ongoing issue:• Transitions to work and benefits barriers• E.g. 2003 evaluation - NDLP 29% return to IS in 12

months, 7% on programme for 3rd or subsequent time

• Persistent and severe child poverty – long-term on benefits and cycling between benefits and work

• Benefits reform and JCP programmes e.g. Employment Retention and Advancement

Employment rates in 2008aged 25-49 81.8 %Men 78.7%White 76.5%Women 70.4%Aged 18-24 63.4%Minority ethnic groups 60.5%Aged 50-69 56.1%DDA disabled people 48.0%

Work and GenderGender balance in Scottish labour force 50:50, but

• 41% women and 11% men work part-time• Women and men in different industries and

occupations• Two thirds of vulnerable and low-paid workers

are women • Women, and particularly mothers, are more likely

to be in insecure jobs as temps or home-workers. • Mothers need flexibility, but trade-offs with rights

and pay

The presence of children affects women’s employment:

With children No childrenSelf-employed 5 4Full-time employment 25 49 Part-time employment 31 16Looking after home/family 26 6Unemployed and seeking work 3 4Higher/further education 5 7Permanently sick or disabled 2 8Other 4 7

Source: Scotland’s People: Results from the Scottish Household Survey 2007

Old Age

Recession impact (2009) Private sector decline, public sector sustained;

Men affected more than women;

Non-white employment declined faster

youth employment fell most in Scotland 08-09 - 16-24 by 5.5%; 25-49 by 1.5%; 50+ by 0.8%

Future? Two stage recession?

• public sector spending cuts – impact on women

Credit CrunchRising home ownership/ record debt levels:

borrowing £400bn (1993), £1,500 bn (2008)

Falling house prices, reducing consumer confidence and spending

Living costs? Fuel rising

Risks of debt greatest for low income groups

IPPR – quality of work matters http://www.ippr.org.uk/publicationsandreports/publication.asp?id=726

Who pays for the recession? More households relying on female (often part-

time) employment

Women’s job loss in public sector

Recovery of youth employment?

Attitudes to equal treatment/ discrimination?

Harsher benefits regimes and work tests?

Cumulative disadvantage reinforced over life cycle

Income inequality is a problem of poverty and wealth

Inequality matters• Taxation changes• Increase adult benefits • Address access affordability (e.g. childcare) • Resource allocation informed by equality

analysis – address disadvantage• Tackle low pay – improve NMW• Tackle discrimination – work, education/ training• Improve quality/ sustainability of work and

progression• Improve rights/ conditions for marginal or

vulnerable workers