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NEF - When the Living Wage isn’t enough

Blog posted by: Faiza Shaheen, October 3, 2013

Think you know Islington? Think again.

Today nef is publishing research looking at what life is like in one of London’s most unequal boroughs and what it will be like in 2020. The trends we highlight are part of a national story: rising inequality, a high cost of living and social polarisation.

The results confirmed our worst fears:

  1. Rising rent and house prices are pushing out most working families, leaving those out of work and the very rich behind. The middle consists of young professionals in house shares. This is not a healthy mix.
  2. The cost of living is so high that even paying lower, social rents many adults need to earn above the London living wage to survive, but evidence suggests those jobs don’t exist if you’re not a graduate.
  3. Stark inequalities of this type have very real social costs for all residents. In particular, those on lower incomes feel that they are ‘looked down on’ and spoke of themselves as less deserving.

I experienced these views first hand when I lived in Islington in an ex-council flat. The owner complained about sharing a building with poorer neighbours but she too had anxieties about the inequality – she worried about being alone in the flat at night.

It is exactly these feels of anxiety, stress and low self-confidence that makes inequality a health hazard. Unequal societies have higher levels of stress related illnesses, lower levels of well-being and social mobility. This is a scary thought for those children growing up in the estates in Islington – without a giant leap in fortunes they will be unable to move into private accommodation in the area.

Islington may be experiencing the sharp end of growing inequality in London, but it is not alone in experiencing polarisation. And to some extent Islington residents are lucky – they live in an area where the local government care about inequality. Islington were the first to run a Fairness Commission and have a number of policies in place to tackle poverty.

However, as the driving factors of inequality ultimately come from outside the borough, tackling income disparities will need intervention at the national level. Our government is yet to show any concern about the growing divide.


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