This month saw the launch of the latest London Poverty Profile 2011 commissioned by Trust for London and conducted by the New Policy Institute.
The key findings include:
• Although child poverty in the capital has fallen since the 2009, working-age poverty has risen while the number of children and working-age adults in in-work poverty grew. Over one million people now live in low-income families where at least one adult is working, an increase of 60% over the last decade.
• High housing costs are a critical factor in explaining why London has the highest poverty rates of all England’s regions. Taking account of housing costs, the poverty rate in London is 28%, compared to 22% in the rest of England, and the gap has grown in the last decade.
• 220,000 households live in overcrowded accommodation, 60,000 more than a decade ago with most of this increase in the private rented sector. London now accounts for 75% of all households in temporary accommodation in England, and most are housed in the private rented sector.
In additon,
Housing benefit changes mean that many parts of Inner London, particularly the Inner West, may become unaffordable for low-income families renting privately. Outer London boroughs, where housing is cheaper, often have lower levels of public services per head: 8 of the 10 primary care trusts with the fewest GPs per population are in Outer London and 35% of Outer London primary schools are full or overcrowded, compared to 19% in Inner London.
The poorest 50% of Londoners have less than 5% of financial or property wealth. The richest 10% have 40% of income wealth, 45% of property wealth and 65% of financial wealth.
The number of unemployed Londoners is now above 400,000, the highest number since 1996, and the rate is rising more quickly than the national average. The unemployment rate among young people is at its highest level for nearly 20 years (23%) and is still rising. Despite, on average, being better qualified than other young people in the rest of England, young Londoners are more likely to be unemployed. Nearly 50% of young adults are paid less than the London Living Wage.
Poor children in London are more likely to lack everyday items than their counterparts outside London, with 60% of children in low-income families unable to afford a week’s holiday away from home.
The report demonstrates the high levels of inequality and poverty that we see in the capital are increasing.
These findings come at a time when it has just been announced that average pay rises for FTSE 100 company executive directors this year were 49%. The Resolution Foundation has also recently published evidence showing that the pay of ordinary workers has been less than economic growth over the last ten years in the UK, indicating that inequality is not being addressed by the ‘trickle down’ of wealth from economic growth.
