WIREDGOV

Think-tank Demos has launched a pioneering new model for measuring poverty that could transform local social service provision and help thousands of families escape poverty.

The culmination of an 18-month research project supported by the Esmeé Fairbairn Foundation and NatCen Social Research, Poverty in Perspective analyses data from the Understanding Society survey of 40,000 households to identify five distinct types of child poverty.

Researchers applied 20 economic, social and environmental indicators - which included poor health, overcrowding, neighbourhood support and ability to pay bills - within the low-income population in an effort to better understand the everyday experience of different groups.

The five resulting child poverty types provide a groundbreaking insight into the different combinations of problems faced by struggling families, and the various services required to provide efficient support. 

The report reveals that economic factors, such as redundancies and squeezed wages, are much more associated with child poverty than social factors alone. The most common household type is ‘the grafters’, families where parents are recently unemployed or in low-paid work, with 1 in 3 low-income families falling into this category.

Work and Pensions Secretary, Iain Duncan Smith, recently launched a consultation looking at how measures of child poverty could be expanded beyond low income. Demos calls for the Government to adopt a strong evidence-based approach, building on the findings of this report which clearly lays out the key indicators and how they interact to affect people’s lives.

Breaking down the poverty types 

The five types of child poverty are:

The grafters – A combination of the recently redundant, the self-employed experiencing a drop in income, and those with a long work history in poorly paid jobs. While employment status differs, ‘the grafters’ share much else in common and perform well across other indicators. They tend to be homeowners, can afford material goods such as fridges and washing machines, have high levels of qualifications and employment, and say they are coping financially.  

Full house families – These tend to be very large households, containing multiple adults and young children, while for many, English is not a first language. ‘Full house families’ can heat their homes and are not behind in paying bills, but housing conditions are likely to be overcrowded.

Pressured parents – Living predominantly in social rental properties, ‘pressured parents’ have low incomes and are extremely deprived with little or no expendable income. They tend to be unemployed, have poor physical and mental health and are more likely to be caring for a child with a health condition or disability than other groups.

Vulnerable mothers – Likely to be single mothers under 24, with babies or young children, ‘vulnerable mothers’ are the most deprived of the five groups. They have limited work history in poorly paid jobs, are behind on bills, cannot afford many white goods, and are the most disengaged from community life. They are also more likely to be physically and mentally unwell.

Managing mothers – This entirely single parent group are slightly older mums with older children. The majority feel they are ‘getting by’ thanks to sophisticated budgeting strategies and whilst many are currently unemployed, they have a strong work ethic. However, a third of ‘managing mothers’ have mental health needs.

Demos also applied this innovative approach to previously under-explored groups creating five ‘types’ of pensioner poverty and also poverty among working-age people without children, currently the fastest growing form of poverty in Britain.

Economic troubles were consistently shown to increase poverty amongst childless households, with over a quarter classified as the ‘new poor’ – middle-aged adults who may own their own homes but as many as two-thirds are currently out of work.

Analysis of pensioner households reveals a widely held resilient attitude when faced with financial hardship. The most common pensioner poverty type, the ‘stoics’, which makes up a third of low-income pensioner households, mainly consists of older, female pensioners living alone who do not report any financial troubles despite, poor family support, financial hardship and low rates of home ownership.

Lack of local data

The report goes on to criticise the obstacles that prevent authorities from accessing local data, and urges the government to do all they can to help make this data available, allowing local policy makers and practitioners to better understand the distinct types of poverty in their area.

The poverty types outlined in Poverty in Perspective illustrate that unique combinations of problems are faced by different types of families across Britain, and how a greater understanding of this can help policy makers better integrate relevant services, such as social housing, adult education and social care to develop bespoke combinations to address the difficulties faced by each group.

Claudia Wood, Deputy Director of Demos and co-author of the report, said:

 “The first step in tackling poverty is understanding it properly. Gone are the days when we could talk about families in poverty as a homogeneous group that can be helped with a one size fits all solution.

“This research is a real breakthrough that lays out a clear template to help local authorities understand poverty at a household level and get to grips with the unique combination of problems that families are facing everyday in their area.”

 “Both Left and Right agree tackling child poverty is a big priority but it cannot be solved by focusing on either income or social problems alone. The government consultation provides an ideal opportunity to start afresh, go where the evidence takes us and take the politics out of poverty.”

Matt Barnes, Research Director at NatCen Social Research, said:

“Poverty in Perspective really helps to paint a multi-dimensional picture of the lives of families living on low income.” 

“Because of the sheer scale and detail of the Understanding Society dataset, which we used to carry out this research, we were able to go much deeper than other measures of poverty, which tend to focus on income alone."

NOTES TO EDITORS

The report, Poverty in Perspective, by Claudia Wood, Jo Salter, Gareth Morrell, Dr Matt Barnes, Ally Paget & Duncan O’Leary is published by Demos on Wednesday 28 November 2012.

Infographic versions of the data and greater detail on the 20 poverty indicators can be found on an interactive microsite due to be launched on Wednesday, 28 November 2012. URL can be found here: www.demos.co.uk/poverty/

The report’s author Claudia Wood is available for print and broadcast interview or comment both in the days leading up the launch and also on the day of the launch. To arrange an interview, please see the media contacts below.

The research was funded by the Esmée Fairbairn Foundation  and conducted by Demos and NatCen Social Research.

Researchers used data from Understanding Society, a comprehensive panel survey of 40,000 UK households. They measured 20 economic, social and environmental indicators to find which types cluster together to form groups – these groups formed the fifteen poverty types.

For a full methodology, including the 20 indicators and the fifteen poverty types, please see the methodology in the executive summary of the report.

About NatCen Social Research:

At NatCen Social Research we believe that social research has the power to make life better. By really understanding the complexity of people’s lives and what they think about the issues that affect them, we give the public a powerful and influential role in shaping services that can make a difference to everyone. And as an independent, not-for-profit organisation, we’re able to focus our time and energy on meeting our clients’ needs and delivering social research that works for society. Find out about the work we do by visiting www.natcen.ac.uk

About the Esmée Fairbairn Foundation:

Esmée Fairbairn Foundation aims to improve the quality of life for people and communities throughout the UK both now and in the future. We do this by funding the charitable work of organisations with the ideas and ability to achieve positive change. 

The Foundation is one of the largest independent grant-makers in the UK.  We make grants of £30-35 million annually towards a wide range of work within the arts, education and learning, the environment and social change. We also operate a £21 million Finance Fund which invests in organisations that aim to deliver both a financial return and a social benefit.

www.esmeefairbairn.org.uk

MEDIA CONTACTS

Ralph Scott
ralph.scott@demos.co.uk

Rob Macpherson
rob.macpherson@demos.co.uk

020 7367 6325
(out of hours: 07554 424 137)