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CRC calls for ‘fundamental review’ of the government’s Index of Deprivation

We have called for a fundamental review of the English Indices of Deprivation in a consultation submission to the Department of Communities and Local Government.

The Indices of Deprivation (IOD) have been used by government for the past ten years to identify and target areas of concentrated deprivation. They have been important in directing significant levels of government funding, both for regeneration and other programmes.

Our longstanding view is that the Indices of Deprivation are not an adequate tool for understanding and addressing the challenges of rural deprivation and a more fundamental review of their use is necessary.

The characteristics of rural areas mean that the use of the IOD does not give an adequate or true picture of the nature and extent of rural deprivation, because:

  • The targeting of concentrations of deprivation fails to adequately detect the many deprived individuals and households that live outside of the ‘most deprived’ areas. Because deprivation in rural areas tends to be dispersed and not concentrated in small areas, this is a particular problem for rural areas because of under representation in the IOD.
  • Many of the factors that contribute to deprivation in rural areas are often different than those in urban areas. Rural deprivation has some particular characteristics which are not picked up by the indicators and the methodology underlying the IOD. For example; people on low incomes in rural areas tend to be working and not claiming benefits; there is a tendency for rural people who are eligible not to claim benefits, especially older people; and people with poor health are less likely to have called upon health services so are not recorded in health service statistics.

Detailed research carried out on our behalf found that only 2.4% of the most deprived areas identified by the IOD are in rural areas. However figures from the Department of Work and Pensions show that in 2007/08, 19% of households in rural areas were living below the poverty line.

We believe resources targeted at areas of the most concentrated deprivation fail to provide for the needs of disadvantaged people living in rural areas. With the priority of the new government to ensure fairness of funding under very tight budgets, we believe now is a good time to put the use of the Indices of Deprivation on hold and conduct a fundamental review of their use.

Indices of Deprivation (IOD) consultation response – April 2010

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