Keir Starmer’s Labour government is doing very little to address the cost of living and low wage crisis. Analysis from the Joseph Rowntree Foundation (JRF) shows the number of people living in “very deep poverty” in the UK reached 6.8 million in 2023/24. That’s the highest level, both absolutely and proportionately, since accounting began in 1994/95. “Very deep poverty” means they have an average income that is 59% below the poverty line.
Labour u-turn on child benefits
As ever, Labour did U-turn. The governing party plans to scrap the two child benefit cap, which is a step in the right direction. Although, it previously suspended seven MPs for voting against the cap and called keeping the Conservative policy a “matter of fairness”.
It’s clear that only pressure from the Green party resulted in the change of policy, not actual conviction that children shouldn’t grow up in poverty. That conviction is particularly true when one considers that the UK harbours a neoliberal job market that’s completely incapable of providing employment for all. That’s because high levels of unemployment are seen as good for bosses who then have a lot of options, while a job guarantee only increases the value of labour.
Labour could at least be addressing greedflation through mandating higher wages and cheaper goods. But other than scrapping a Conservative policy, they are doing next to nothing.
Joseph Rowntree Foundation analysis
Apparently, neoliberal capitalism takes us in the right direction. Yet the number of people living in destitution (unable to stay warm, fed, dry and hygenic) more than doubled from 2017-2022, the analysis points out.
The number of people who are food insecure also increased by 60% from 2021/22 to 2023/24. That’s another 2.8 million people who are struggling to afford food.
The organisation notes that a lack of an ambitious government industrial strategy is fueling poverty. Over a decade of weak growth, increasingly high housing rents and austerity have supercharged deep poverty levels.
While the number of people in deep poverty has increased, the percentage of UK citizens in poverty generally is similar to 2020 – at 21%. To break it down, two in every ten working age adults are in poverty, three in every ten children and three in every 20 pensioners.
The number of pensioners in poverty is a disgrace. But the disparity between children, adults and pensioners living in poverty demonstrates the lack of government strategy to invest in society. People no longer have the benefits the post-war settlement offered baby boomers. The nationalisation of essentials, affordable homes, and free university are all examples of what delivered prosperity for the older generation. Today, we have privatisation, excruciating rents, and high tuition fees.
We need a new settlement, fast. Nationalisation should go further – removing profiteering middlemen like supermarkets. Home ownership should be offered at cost price, challenging state landlordism as the only other option. Tuition fees should be binned, with an investment in education seen as a priority.
Re-imagining society is key.
Featured image via the Canary
By James Wright
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