The Poverty Strategy Commission, an independent, cross-party group Chaired by Baroness Stroud, has today published its first report, “A new framework for tackling poverty”, highlighting the scale of the resources gap that must be closed if poverty is to be successfully alleviated in the UK.
The “missing” £36 billion is equal to an increase in resources of £6,000 a year for each of the six million families living in poverty. is equal to an increase in resources of £6,000 a year for each of the six million families living in poverty.
The report sets out the need for significant and sustained action from businesses, civic society, individuals, and families in poverty themselves, as well as action from central, national, and local governments. It recommends the creation of a comprehensive, sustainable, and fair social contract.
Increasing earnings by 5% for people in poverty would mean the number in poverty falls by 515,000; increasing benefit awards by 5% for people in poverty could see a reduction of 725,000 people in poverty.
A family in poverty may not be able to save or accumulate assets, however, saving in good times can insulate them against future shocks. Ensuring that people build up savings buffers before they are in poverty could reduce the numbers in poverty by 415,000.
A fall in the costs of housing, childcare and disability can help to reduce poverty. Lowering housing costs by 5% for people in poverty could reduce poverty numbers by 355,000.
Enhancing relationships and networks; education and qualifications; physical and mental health; financial capability; and labour market outcomes can affect the experience of poverty and the ability of people to create their own pathway out of poverty. For example, ensuring that everyone in poverty has at least some basic formal qualifications could reduce the number of those in poverty by 115,000.
Baroness Stroud, Chair of the Poverty Strategy Commission, said:
“The Commission’s rallying cry is this: together we can tackle poverty. The status quo is unacceptable but not inevitable, as the work of the Commission shows.
“We can make a once-in-a-lifetime impact on poverty in the UK if all key actors play their part. Today’s report is the first step in setting out a plan for how this can become a reality.”
