How does housing affect work incentives for people in poverty? Report to Joseph Rowntree Foundation Kenneth Gibb, Mark Stephens, Darja Reuschke, Sharon Wright, Kirsten Besemer and Filip Sosenko

Project Objectives & Our Approach JRF Poverty theme question – how can housing policy and practice more effectively support out of work households into work, and in-work households in poverty into better work? Research carried out part mixed methods: evidence review; longitudinal quantitative analysis, five case studies and synthesis

Evidence Review Economic analysis of work incentives Neighbourhood effects on work incentives Housing as a spatial barrier to employment Self-employment Welfare changes and work incentives Non-housing influences (gender, lone parents, impairment & disability)

Longitudinal pathways into/out of poverty (BHPS/Understanding Society) Exploration of complex disaggregated patterns of individuals and households moving in and out of poverty Important role of employment, houseold type, gender and housing in these patterns Combination of sequence analysis and modelling to try to understand some of these relationships Sample sizes vary, 60% of equivalised median household income is benchmark

Poverty pathways of individuals in poverty in 2000

Key Quantitative Findings and Conclusions 1.Poverty and employment 2.The nature of poverty 3.Pathways into poverty 4.Housing and pathways into poverty 5.Housing and pathways out of poverty 6.Employment pathways out of poverty Overall – high degree of LM attachment among people who experience poverty – work does not guarantee a life free of poverty, but few exit poverty without being in employment

Case Studies Seek to carry out 50 plus in depth interviews in well defined local contexts (labour market pressure, housing system and UK variation), plus professional/practice focus group and housing-led employment good practice Case studies selected: 1. London borough of Lewisham 2. Scottish Borders 3. Larne, Northern Ireland 4. Oldham, Northern England 5. Merthyr Tydfil, Wales

Case Study ‘Place’ Themes Housing and place Transport and mobility Housing costs and work incentives

HOUSING AND PLACE

TRANSPORT AND MOBILITY

HOUSING COSTS AND WORK INCENTIVES

Case studies Key Messages 1 1.Neighbourhoods can facilitate social networks that support work and informal recruitment channels 2.Poor quality homes and neighbourhoods may demotivate or incentivise different people 3.Changes to housing and labour market have added further barriers to labour mobility 4.The changing nature of jobs exacerbates the impact that cost and availability of transport has on employment incentives

Case study Key Messages 2 1.Economics of car ownership can be a major disincentive 2.The importance of the underlying level of rents 3.Effects of housing incentives are most acutely felt by those with low skills, impairment and age disadvantages

Conclusions Challenges the perception of a widespread reluctance to work But there are multiple disincentives – housing, nature of jobs, child care, transport, welfare Key issues going forward are investment in relevant skills but also addressing root causes of low skills Policy makers need to better understand the position and lack of control of people at the bottom end of the labour market

Recommendations 1.Investing in neighbourhoods 2.Affordable transport 3.More secure tenancies –remakng the case for social housing 4.Greater tenure security increases mobility 5.The way HB and UC are administered 6.Childcare availability & affordability And learn from local/devolved diversity

Link to report and findings housing-affect-work-incentives-people- poverty housing-affect-work-incentives-people- poverty