How Deprived Britain is Now
Your chances of living in poverty in the UK have fallen in the last few years. But, oddly, that doesn’t mean we have more money.
Author:Rhyley CarneyReviewer:Paula M. GrahamFeb 26, 202138.8K Shares580.5K Views
Great news! In the last few years, the chances of living in poverty in the UK have fallen. But, interestingly, that doesn't mean that we have more capital. Sadly, the number of Britons suffering has increased in almost every measure since the financial crisis of 2007.
More individuals struggle to pay their mortgages, leases, meet loan payments, keep their homes warm, meet unexpected expenses, or even regularly eat meat or protein.
So, why is it less likely that people are in poverty? Yeah, that's because, relative to everyone else, poverty is calculated, and everyone else has become poorer too.
“Someone is described as being at risk of poverty if their equivalised disposable income (after social transfers such as direct income support, child benefits, and non-contributory pensions) is below the poverty threshold. This threshold is 60% of national median equivalised disposable income,” explained the Office for National Statistics (ONS).“This type of relative indicator does not measure absolute wealth or poverty, but low income in comparison to other residents in that country, which in itself does not necessarily imply a low standard of living.”What does that mean in practice? Well, an annual income of £14,873 – or £286 a week – puts you “at risk of poverty”, according to official figures.
How Bad Is It?
The ONS calculated that in 2011, the most recent period we have figures for, 14 million people were at risk of poverty or social exclusion in Britain. More than one person in 20 (5.1%) is now experiencing “severe material depression”, the ONS reports.There has been a 38% rise in the number of people unable to meet unexpected financial expenses since 2007, while the number of people unable to afford an annual holiday has increased by 39% in the same period.
The number of households with “low work intensity” – where adults work just a fifth of the time they could work – has also risen since 2007, up 12%.
The Good News
While things are a lot worse for many Britons compared with before the financial crisis, they are getting slightly better.
The biggest improvement was in the number of people with “low work intensity”, which is down 12% since 2010. Overall the number of people at risk of poverty fell 5% between 2010 and 2011.
That means that for the first time since comparable records began, you are less at risk of poverty in the UK than in Europe on average.
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Rhyley Carney
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Paula M. Graham
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