Tackling Poverty in the Context of Reducing Public Sector Spend and Benefit Changes: Emerging Challenges for Eilean Siar, Scotland and the UK: Dr John H. McKendrick Glasgow School for Business and GCU Tackling Poverty Workshop, Stornoway, Eilean Siar. Friday October 30 th 2012

Crux of the problem Why does Scotland’s poverty remain an urban problem? Tackling Poverty Workshop. Stornoway, Eilean Siar. October 30 th 2012

Overview of presentation What is poverty? Eilean Siar’s poverty in the Scottish context The rural dimension Tackling poverty in Scotland New thinking and the implications for tackling poverty locally Tackling Poverty Workshop. Stornoway, Eilean Siar. October 30 th 2012

What is poverty?

The vision of the optimist … Poverty is an inevitable (but unproblematic) social ill Poor people are to blame Our anti-poverty interventions have not been sufficiently effective to tackle poverty in Scotland Vested interests create and maintain poverty Tackling Poverty Workshop. Stornoway, Eilean Siar. October 30 th 2012

Poor Michael Ballack! Tackling Poverty Workshop. Stornoway, Eilean Siar. October 30 th 2012

Good, bad or credible? Thinking through the concept of poverty Poverty is BAD, it is a problem for –For individuals and families –For society Poverty is GOOD, it encourages improvement –For individuals and families –For society Credibility of ‘poverty’ in an affluent welfare state Tackling Poverty Workshop. Stornoway, Eilean Siar. October 30 th 2012

Not having enough Thinking through the concept of poverty Poverty means ‘not having enough’ … what does ‘not having enough’ mean –Not having as much as others? –Not having enough for what you want? –Not having enough for what you need? –Not having as much as most of the others? Tackling Poverty Workshop. Stornoway, Eilean Siar. October 30 th 2012

Dimensions of poverty Absolute Poverty –Level of resources needed to sustain physical survival Relative poverty –Unable to take part in activities which are an accepted part of daily life Material deprivation –Specific necessities to which an individual or household may or may not have access Tackling Poverty Workshop. Stornoway, Eilean Siar. October 30 th 2012

UK Formal Measures Absolute Poverty –Number and proportion of children in households whose equivalised income before housing costs is below 60 per cent of inflation adjusted GB median income in 2010/11. This is a measure of whether the poorest families are seeing their incomes rise in real terms. Relative poverty –Number and proportion of children in households whose equivalised income before housing costs is below 60 per cent of GB median income in the same year. This is a measure of whether the poorest families are keeping pace with the growth of incomes in the economy as a whole Material deprivation –Number and proportion of children that are both materially deprived and are in households whose equivalised income before housing costs is less than 70 per cent of the GB median in the current year. This is to provide a wider measure of children’s living standards. Tackling Poverty Workshop. Stornoway, Eilean Siar. October 30 th 2012

Child material deprivation indicators –A family holiday away from home for at least one week a year? –Go swimming at least once a month? –Do a hobby or leisure activity? –Have friends around for tea or a snack once a fortnight? –Are there enough bedrooms for every child of ten or over of a different sex to have their own –Leisure equipment such as sports equipment or Toys –Celebrations on special occasions such as birthdays, Christmas or other religious festivals? –Go to a toddler group/nursery/playgroup at least once a week? –Go on school trips? –An outdoor space or facilities nearby where they can play safely? Tackling Poverty Workshop. Stornoway, Eilean Siar. October 30 th 2012

Poverty in Scotland in recent years Tackling Poverty Workshop. Stornoway, Eilean Siar. October 30 th 2012

Eilean Siar’s poverty in the Scottish context

Areas of multiple deprivation Tackling Poverty Workshop. Stornoway, Eilean Siar. October 30 th 2012 Local authority National Share of Deprived Areas (15% Most Deprived data zones in Scotland) 5% Most deprived areas in Scotland % 10% Most deprived areas in Scotland % 15% Most deprived areas in Scotland % Glasgow City Eilean Siar0000 Orkney Islands0000 Shetland Isl.0000 Aberdeenshire

Income deprivation in Scotland Tackling Poverty Workshop. Stornoway, Eilean Siar. October 30 th 2012

The rural dimension

BIG rural numbers 160,000 1 in 6 of people living in poverty in Scotland 14% of people in rural Scotland. Tackling Poverty Workshop. Stornoway, Eilean Siar. October 30 th 2012

Rural realities and poverty Higher cost of living Higher levels of consumption. Fewer opportunities to earn an adequate income. Dispersed ‘invisible’ deprivation. Culture of independence and self-reliance Gender pay gap Access. Tackling Poverty Workshop. Stornoway, Eilean Siar. October 30 th 2012

Tackling poverty in Scotland

What is being done? UK Child Poverty Target ( ) –UK goal to eradicate child poverty within a generation House of Commons Scottish Affairs Committee Poverty in Scotland report Social Justice Milestones ( ) –Ten long-term Targets and twenty-nine Milestones across five population groups Closing the Opportunity Gap ( ) –Three Aims, Six Objectives and Ten Targets Achieving Our Potential (2008 … ) –Discussion paper published on January 31 st 2008 –Framework published on November 24th 2008 –Aim to Reduce income inequalities –Aim to Provide opportunities for economic participation –Involve partners in addressing poverty –Economic prosperity and reducing income inequality Scottish Child Poverty Strategy (2011-) Tackling Poverty Workshop. Stornoway, Eilean Siar. October 30 th 2012

Tackling poverty locally

What might tackling poverty locally actually mean? Enabling people not living in poverty to increase the opportunities for more people to live a poverty- free life --- Reducing the number of people living in poverty Preventing people on the margins of poverty from falling into poverty Enabling people living in poverty to increase their chance of living a poverty-free life --- Protecting those living in poverty from the worst excesses of living with poverty Tackling Poverty Workshop. Stornoway, Eilean Siar. October 30 th 2012

A paradoxical problem Aiming to reduce the number of people living in poverty is a problematic goal for local anti- poverty strategies Tackling Poverty Workshop. Stornoway, Eilean Siar. October 30 th 2012

What is the problem with aiming to reduce the numbers living in poverty? Nothing (in principle, or for those with control over the key levers) The local state (and indeed the Scottish Government) cannot control this Reducing numbers tends to be interpreted as a work-first approach and … –Work, per se, does not eradicate poverty –(Job) supply is insufficient to meet demand –Local state is scaling back on the number it employs Tackling Poverty Workshop. Stornoway, Eilean Siar. October 30 th 2012

What should be at the heart of local strategies to tackle poverty? Protecting those living in poverty from the worst excesses of living with poverty Tackling Poverty Workshop. Stornoway, Eilean Siar. October 30 th 2012

Why should ameliorating poverty be at the core of a local strategy? It is already what you do –It would give more explicit acknowledgement of tackling poverty activity –More likely to engender wider internal support for tackling poverty It may, by default, become the most important function of the current tackling poverty interventions of the local state –Rising demand for core services –Contraction of activity in employment/employability It is within the realm of local control –No confounding/intervening factors (it could be argued) Tackling Poverty Workshop. Stornoway, Eilean Siar. October 30 th 2012

New thinking Early intervention Preventative spend Making work pay (relative to benefits) Person-centred services Mainstreaming Outcome focus / Single Outcome Agreements Big Government Big Society Resilient State Tackling Poverty Workshop. Stornoway, Eilean Siar. October 30 th 2012

Poverty informed decision making and budgeting: a critical introduction Dr John H. McKendrick Glasgow School for Business and GCU Tackling Poverty Workshop. Stornoway, Eilean Siar. October 30 th 2012