More than four million people live in families experiencing ‘deep poverty’ while more than half of those are also in ‘persistent poverty’

New Social Metrics Commission report also warns that initial research on the economic and social impacts of COVID-19 show they are likely to be ‘profound’

More than four million people live in families experiencing ‘deep poverty’ while more than half of those are also in ‘persistent poverty’, according to the Social Metrics Commission.

In Social Metrics Commission: 2020 Report, the Commission provides an analysis of poverty rates based on data collected between April 2018 and March 2019 and initial findings from research into the likely economic and social impacts of the coronavirus (COVID-19) outbreak on poverty in the future, saying in the foreword to the report that - 

‘… the results within this report will act as the baseline against which the impact of the coronavirus crisis can be judged. In this respect they show that, even before the crisis, there were significant disparities in experiences for individuals and families right across the UK.’

Key findings for the period before the pandemic show that -

• 14.4 million people in the UK are living in families in poverty, with 4.5 million people (7 per cent of the UK population) living in deep poverty - defined as living in families that are more than 50 per cent below the poverty line;
• the number in deep poverty has increased from 2.8 million people (5 per cent) in 2000/2001, meaning that there are 1.3 million more people in deep poverty today than would have been the case if the rate had remained at the 2000/2001 level;
• the increase in rates of deep poverty is in contrast to the overall rate of poverty, which has changed relatively little over the same period (decreasing from 23 per cent in 2000/01 to 22 per cent in the latest figures); and
• of those currently in deep poverty, 2.4 million are also in persistent poverty; meaning that they have also been in poverty for at least two of the last three years.

In addition, the Commission sets out findings on the economic and social impacts of the coronavirus crisis - from research conducted with around 80,000 people polled between March and May 2020 into how the crisis has impacted on their financial situation, their attitudes towards society and experiences of loneliness and the extent to which they are confident about the future - which include that -

• the largest employment impacts have been felt by those in the deepest levels of poverty - where nearly two in three (65 per cent) of those employed prior to the COVID-19 crisis have experienced some kind of negative labour change such as reduced hours or earnings and/or furlough or job loss - compared to 35 per cent of those who were employed and more than 20 per cent above the poverty line prior to the crisis;
• 20 per cent of those who were previously employed and in deep poverty reported they had lost their jobs, compared to 12 per cent of those who were either just above the poverty line or in poverty and within 50 per cent of the poverty line, and 7 per cent of those more than 20 per cent above the poverty line; and
• more than a quarter (26 per cent) of all of those in deep poverty (regardless of their labour market status prior to COVID-19) experienced a negative change in their employment status or earnings compared to around one in five of those experiencing poverty closer to or above the poverty line.

As a result, while the Commission highlights that the full scale of the impacts from the COVID-19 crisis are yet to be felt, and cannot yet be measured, it warns that-

‘What we do know from existing analysis, including original analysis in this report, is that the impact is likely to be profound.’

Commenting on the report, Chair of the Social Metrics Commission Philippa Stroud said -

‘It is extremely concerning that the proportion of people experiencing deep poverty has risen since the millennium, through governments of all colour, and is likely to continue to increase as the country struggles with the ongoing effects of the coronavirus pandemic.

Our analysis indicates a picture where, over the last 20 years, rising employment rates for those in poverty were helping families move out of deep poverty, so they were more likely to be able to escape poverty in the future. A reversal of this employment success story will likely lead to many of those already experiencing poverty moving into deeper poverty. Supporting employment, especially for those on the lowest incomes, must remain a key priority of government.

The Commission’s analysis of those in deep poverty also demonstrates the importance of looking beyond previous headline poverty measures to ensure that all those living in poverty are not viewed as a single group. Poverty is more likely to be experienced by some families than others, and the nature of that experience is also incredibly varied. The causes and implications of these various types and experiences of poverty are different, which means the approach needed to tackle them will be different.’

For more information, see Social Metrics Commission: 2020 Report from socialmetricscommission.org.uk