A recent report reveals that the most marginalized individuals in the United Kingdom have not seen any improvement in their circumstances over the past 15 years. The report, from the Centre for Social Justice, highlights a significant disparity between those who are able to make ends meet and those who are stuck in poverty. This troubling finding highlights the ongoing problem of inequality in one of the wealthiest countries in the world. The Centre for Social Justice has a track record of influencing policy, including reforms to the UK's welfare system and the establishment of Universal Credit, a monthly government subsidy for those with low incomes.
The 300-page report released on Sunday provides further evidence of how the UK's economic stagnation has significantly hindered efforts to address poverty, with a cost-of-living crisis worsening the struggles of the most vulnerable members of society.
"We have found that the nation is deeply divided," stated Sophia Worringer, deputy policy director at the Centre for Social Justice, during the report's launch event on Monday.
"The majority of the population can manage, but there is a segment of people whose lives are characterized by family instability, physical and mental health issues, living in unsafe areas, and facing numerous obstacles to finding employment. The think tank cautions that the UK is in danger of reverting back to a society reminiscent of the Victorian era, with a growing division between the mainstream population and a poverty-stricken underclass."
During the Victorian age, which spanned the latter half of the 19th century, there was widespread social inequality. The working class endured harsh living conditions, lacking access to clean water, proper food, and sanitation, while having limited opportunities for advancement.
A report concludes that poverty is also deeply ingrained in modern Britain, asserting that financial hardship is just one of many factors contributing to disadvantage. The breakdown of families, addiction, unemployment, significant personal debt, and educational struggles are identified as other major causes.
The shuttered House of Fraser department store in the heart of Middlesbrough, a town in the UK, serves as a stark reminder of the harsh economic challenges confronting the most deprived regions of Britain.
Joanne Coates/Bloomberg/Getty Images/File
The research utilized a survey of 6,000 individuals, with over half of them being from low-income communities. Additionally, the team interviewed more than 350 small charities, social enterprises, and experts, visiting over 20 towns and cities across the UK.
"The foreword to the report, signed by Mervyn King, a former Bank of England governor, among others, states that Britain is broken and the gap between the haves and have-nots is dangerously wide," it finds. It also reveals that average weekly wages in Britain have remained unchanged since the 2008 financial crisis when adjusted for inflation. Additionally, it highlights that 38% of people claiming Universal Credit are also working, indicating that their earnings are insufficient to support themselves.
Pandemic lockdowns catastrophic
"For some individuals, work is often insecure and of poor quality," stated Worringer. "The lack of stability in available work compared to the security of benefits makes it not worth the jump into work for some."
The report highlights that pandemic lockdowns worsened the main causes of poverty and had a devastating impact on the country's social structure. It also revealed that during lockdowns, calls to domestic abuse helplines increased by 700%, mental health issues in young people rose from one in nine to one in six, severe school absenteeism surged by 134%, and an additional 1.2 million people began receiving welfare payments.
Alcohol poisoning deaths, which had been on the decline prior to the pandemic, have increased since the widespread outbreak of Covid-19.
"The lingering effects of the Covid-19 pandemic continue to impact those who have been left behind," Worringer stated. "Life has yet to return to normal for them, and the scars from that time are still deeply ingrained."
If current trends persist, over 25% of children ages five to 15 are expected to have a mental health disorder by 2030. Without the pandemic and lockdowns, this percentage would be less than 20%, as stated in the report.
The authors of the report will present an extensive set of policy suggestions next spring to address the underlying causes of poverty, Worringer stated. She added that without a plan to do so, "our future looks bleak."
A think tank called the Resolution Foundation published a report last week that revealed greater income inequality in Britain than in other large European countries. The report pointed to slow growth and high inequality as a detrimental combination that has been impacting the living standards of low- and middle-income Britons even before the onset of the cost-of-living crisis. The report also highlighted that inflation-adjusted wages have stagnated in Britain since 2007, resulting in an average loss of £10,700 ($13,500) per year in pay growth for workers.