 |
| The modern image of poverty is something like the above, but it should also include low-paid care workers, part-time shop assistants and people priced out of housing. (Pic : Swansea Sound) |
The Committee's summarised recommendations are:
- The Welsh Government should establish a "Welsh Poverty Alliance" to draw together officials, academics, people living in poverty and the third sector. It should help develop policy and would scrutinise poverty levels.
- The Welsh Government should adopt a clear definition of poverty; the committee recommending that the definition be based on whether people can meet minimum human needs for an acceptable living standard and to fully participate in society.
- The Welsh Government should commit to ensuring every person has food, shelter and warmth.
- The Minister for Communities and Tackling Poverty should commission research to improve the quality of poverty data.
- The Welsh Government should use its influence on the low-skilled labour market to ensure procurement opportunities improve the quality of life of people enduring in-work poverty, and press for devolution of the Work Programme.
- The Welsh Government should increase take-up of Pension Credit and the Discretionary Assistance Fund (DAF), and eligibility criteria for the DAF should be widened.
Poverty in Wales : An Overview
 |
| (Pic : Communities, Equalities & Local Government Committee) |
In 2012-13, poverty in Wales (23% of the population, or 690,000 people) was higher than the UK average (16.8%) and has changed little since 2000. Of the nations and regions, only Greater London has a higher proportion of people living in poverty (28%), and the Welsh rate was similar to the West Midlands. Of the four home nations, Wales has the highest poverty rate.
The nature of poverty has changed from being primarily amongst the old, to increasingly being amongst the young, and the Welsh Government has a "difficult task" to meets its commitments to tackle poverty. The Committee say that while the infrastructure to tackle poverty is "comparatively good" in Wales, a lack of understanding and patchy implementation of policies meant "little progress has been made in reducing overall poverty figures".
Leadership & Accountability
 |
| The Welsh Government have created a dedicated Communities & Tackling Poverty cabinet position, but there was criticism as to whether their policies are actually delivering real change. (Pic : Wales Co-operative Centre) |
"....reducing poverty, especially persistent poverty amongst some of our poorest people and communities, and reducing the likelihood that people will become poor.”
To achieve this,
the Welsh Government has Minister for Communities and Tackling
Poverty, currently Lesley Griffiths AM (Lab, Wrexham), and a Tackling
Poverty Action Plan (TPAP - pdf). The TPAP has three core aims : to prevent
poverty, help people into work and mitigate the impact of poverty.
The Minister herself said that all government departments have responsibilities in their own portfolios to tackle poverty, though the Welsh Government also admit that lack of control over the benefits system and key economic levers limits their ability to make a serious impact.
Although there was praise – from the likes of the Joseph Rowntree Foundation (JRF), Barnardo's Cymru, WCVA and Bevan Foundation - for the Welsh Government making tackling poverty a number one priority, and raising the profile of issues like child poverty, many organisations questioned if it's made a difference.
On the lack of progress, the Minister said,"....we have to recognise that there are a lot of factors that are outside our control. I do believe that our policies and programmes are making a difference.”
Local authorities called for the Welsh Government to provide "clear strategic direction", while the JRF proposed following Scotland's example and establishing an independent anti-poverty alliance to bring all organisations involved in alleviating poverty together. Also, there were calls for the Welsh Government to give greater consideration to the socio-economic responsibilities as set out in the Equalities Act 2010 – responsibilities which are likely to be devolved in the next Wales Act and possibly enforced by the Future Generations Commissioner (a post created by the Wellbeing of Future Generations Act 2015).
The Committee were "deeply concerned" by the lack of progress on reducing poverty given the long-term commitment to the issue. Despite policy areas like welfare being non-devolved, the Committee say that "the Welsh Government can do much more within the confines of the current devolution settlement", saying current arrangements are "introspective, disparate and ineffective".
Understanding Poverty
Some respondents believed the definition of poverty (mentioned earlier) needs to be broader, and should be framed in terms of "minimum needs". The Bevan Foundation argued that using an income-based measurement "doesn't take into account needs....or costs", which penalised rural residents and the disabled, who might have incomes above the poverty threshold, but who have higher costs.
Bath University's Prof. Jane Millar said a "three-fold measure" which includes income, material deprivation and work intensity might be more appropriate, as it would factor-in issues like underemployment (i.e. graduates working part-time service jobs) and zero-hour contracts.
The Trusell Trust criticised the TPAP for not including food poverty, referring to the fact that ~80,000 people in Wales had to rely on foodbanks in 2013-14 – many the result of benefit delays or welfare reform. Similarly, National Energy Action believed fuel poverty should be given greater prominence, with ~328,000 Welsh homes living in fuel poverty and "it's a fundamental need to heat a home", with 57% of older people worried about energy bills.
Housing was a particular challenge amongst young people on low incomes. It's said that "reducing the costs of core goods and services" – such as greater use of instalment payment plans – would mean less public expenditure on poverty alleviation by the state. There were calls for the Welsh Government to innovate on basic costs, citing the Homelife project in Newcastle where anyone in receipt of housing benefits is provided with long-term accommodation through bringing empty properties back into use.
The Minister said income "was the most important constituent of poverty, but obviously not the only one", explaining that food poverty was "not as stark" when the TPAP was first published, suggesting TPAP may be updated in future to reflect this.
The Committee called for the Welsh Government "to have a deeper understanding of the population living in poverty".
Who's living in poverty?
Many
respondents bemoaned the lack of quality data, particularly the
"depth" of poverty (how long and how severe), which would
enable resources to be carefully targeted. The Bevan Foundation went
as far as to say policy-makers were "working in the dark" –
a view backed by a number of witnesses.
In terms of public attitudes, there's a need for the truth to be told about poverty. While there was a general awareness of "lacking the money to get by" there was sometimes little sympathy, and there were calls for people in poverty to tell their stories via "Poverty Truth Commissions" – like those in Scotland and Leeds.
The Welsh Government's anti-poverty approach has traditionally been based on geography (targeting poor areas) rather than demographics (targeting groups of people) – exemplified by Communities First. Demographics should be taken into consideration otherwise impoverished people living outside Communities First areas might miss out, and Oxfam Cymru noted asylum seekers as a demographic which often are in need but don't live in these areas.
Oxfam also said the Welsh Government's approach was a lot like labelling poor people as "a fixed group separate from the rest of us", when poverty is a state people will find themselves in depending on changing life circumstances.
Women were said to be at higher risk of poverty than men because they're over-represented in low paid, temporary and part-time work, are more likely to be lone parents or live alone beyond the age of 80. Poverty is also linked to domestic violence, where abused women are trapped in violent relationships for economic reasons. Other at-risk groups include children (1 in 3 Welsh children live in an impoverished household), refugees and the disabled.
The Minister dismissed the need for a "big mapping exercise" as it would take up a huge amount of time and resources, but recognised that the Welsh Government could take more care on its data collection. She added that while geographical schemes are important, not all anti-poverty schemes are based on geography.
Increasing Household Incomes
The "crucial link" between poverty
and economic policy was emphasised, and both the Bevan Foundation and
JRF pointed out a lack of coordination between Welsh Government
schemes which help people into work and others which create jobs.
Oxfam pointed towards a "chronic lack of decent jobs in
Wales".
Due to changes in working practices such as the use of zero-hour contracts, work is no longer "the straightforward route out of poverty", and the Trusell Trust said many referrals to foodbanks were from the low-paid and underemployed. There was a need to develop opportunities "at the lower-end of the labour market" in sectors which are traditionally low-paid such as care and retail, though Prof. Millar said the creation of low-paid jobs subsidised by benefits would just "push the problem along".
On helping people into work, the Bevan Foundation called for targeted efforts amongst those who are hard to reach, like ex-prisoners and ex-substance abusers. Others said that efforts to help the disabled into work were "ineffective", and generic programmes like the Work Programme are only good for those who are work-ready.
Subsequently, there were calls for the Work Programme to be devolved because there would be better understanding of local labour markets; though there was criticism from Oxfam that as the scheme works on a payment-by-results basis, it doesn't help people who are "further away from the labour market".
There were points raised on the lack of affordable childcare and people not claiming benefits they're entitled too – Pension Credit is underclaimed by £168million in Wales. Also raised were cuts to local authority services such as libraries and transport, as well as concerns over digital inclusion – around 30% of people on Anglesey are said to have never accessed the internet – plus crisis payments, where the Welsh Government's Discretionary Assistance Fund (DAF) has underspent by £2.5million because of difficulties accessing the money, not a lack of need.
Conclusions
If the other three reports
are like this one, this has the potential to be the most important
committee inquiry undertaken since devolution.
Some of the findings were open secrets – high levels of "in-work poverty", lack of proper data, underclaiming benefits and concerns over whether the Welsh Government's anti-poverty schemes, like Communities First, were really delivering.
Though - despite a similar programme's noted success in Scotland - as is the usual case in Wales, the headline recommendation is to set up a committee. I don't get this - primarily Welsh - political obsession with "building alliances", "engaging with key stakeholders" and public consultations (which are often an excuse to rubber-stamp a decision that's already been made).
If someone is narcissistic enough to go into politics, they should have the gumption to stick their own neck out when making tough calls. They're not actors, and their job isn't to build up an audience to applaud them. We need more leaders, not administrators, and if there's one area of public policy where the country needs to be grabbed by the scruff of the neck it's poverty.
My opinion is that the collar-grabbing action is independence. Although funding is an issue, I'm not convinced it's down to that alone - especially when you consider just how much money has been thrown at tackling poverty down the years (including the welfare system). It's also down to innovation (or lack of), the mythologising of the industrial working class and labour movement, as well as a simple lack of ambition; and in Wales, there's no bigger signifier of a lack of ambition or ideas than setting up a committee.
The take home message from this report is the emphasis on targeting demographics and groups of people (preferably individuals) over geographical areas.
Give a family a fish, and they'll be fed for a day; teach a family to fish and they'll be fed for life; provide the family's neighbourhood with fishing engagement scheme coordinators backed by the European Social Fund, and you give fishing engagement scheme coordinators a well-paid public sector job taking up a sizable chunk of the local fishing engagement budget (more from Jac o' the North).
Nonetheless, it's good to have all this down on paper and, depending on the other three reports, it could provide a fantastic reference point for future Welsh governments. I can't criticise the quality of the inquiry – and I'm pleased the Committee rightly criticised the Welsh Government's record - but in terms of the recommendations, it's a bit of a stuck record and hasn't really told us anything we didn't already know.
The Minister herself said that all government departments have responsibilities in their own portfolios to tackle poverty, though the Welsh Government also admit that lack of control over the benefits system and key economic levers limits their ability to make a serious impact.
Although there was praise – from the likes of the Joseph Rowntree Foundation (JRF), Barnardo's Cymru, WCVA and Bevan Foundation - for the Welsh Government making tackling poverty a number one priority, and raising the profile of issues like child poverty, many organisations questioned if it's made a difference.
On the lack of progress, the Minister said,"....we have to recognise that there are a lot of factors that are outside our control. I do believe that our policies and programmes are making a difference.”
Local authorities called for the Welsh Government to provide "clear strategic direction", while the JRF proposed following Scotland's example and establishing an independent anti-poverty alliance to bring all organisations involved in alleviating poverty together. Also, there were calls for the Welsh Government to give greater consideration to the socio-economic responsibilities as set out in the Equalities Act 2010 – responsibilities which are likely to be devolved in the next Wales Act and possibly enforced by the Future Generations Commissioner (a post created by the Wellbeing of Future Generations Act 2015).
The Committee were "deeply concerned" by the lack of progress on reducing poverty given the long-term commitment to the issue. Despite policy areas like welfare being non-devolved, the Committee say that "the Welsh Government can do much more within the confines of the current devolution settlement", saying current arrangements are "introspective, disparate and ineffective".
Understanding Poverty
 |
| The nature of poverty has changed so quickly over the last few years that foodbanks aren't included in the Tackling Poverty Action Plan. (Pic : Wales Online) |
Some respondents believed the definition of poverty (mentioned earlier) needs to be broader, and should be framed in terms of "minimum needs". The Bevan Foundation argued that using an income-based measurement "doesn't take into account needs....or costs", which penalised rural residents and the disabled, who might have incomes above the poverty threshold, but who have higher costs.
Bath University's Prof. Jane Millar said a "three-fold measure" which includes income, material deprivation and work intensity might be more appropriate, as it would factor-in issues like underemployment (i.e. graduates working part-time service jobs) and zero-hour contracts.
The Trusell Trust criticised the TPAP for not including food poverty, referring to the fact that ~80,000 people in Wales had to rely on foodbanks in 2013-14 – many the result of benefit delays or welfare reform. Similarly, National Energy Action believed fuel poverty should be given greater prominence, with ~328,000 Welsh homes living in fuel poverty and "it's a fundamental need to heat a home", with 57% of older people worried about energy bills.
Housing was a particular challenge amongst young people on low incomes. It's said that "reducing the costs of core goods and services" – such as greater use of instalment payment plans – would mean less public expenditure on poverty alleviation by the state. There were calls for the Welsh Government to innovate on basic costs, citing the Homelife project in Newcastle where anyone in receipt of housing benefits is provided with long-term accommodation through bringing empty properties back into use.
The Minister said income "was the most important constituent of poverty, but obviously not the only one", explaining that food poverty was "not as stark" when the TPAP was first published, suggesting TPAP may be updated in future to reflect this.
The Committee called for the Welsh Government "to have a deeper understanding of the population living in poverty".
Who's living in poverty?
 |
| There was criticism of a lack of quality data on poverty, and criticism also of the Welsh Government's focus on geography at the expense of demography. (Pic : Wales Online) |
In terms of public attitudes, there's a need for the truth to be told about poverty. While there was a general awareness of "lacking the money to get by" there was sometimes little sympathy, and there were calls for people in poverty to tell their stories via "Poverty Truth Commissions" – like those in Scotland and Leeds.
The Welsh Government's anti-poverty approach has traditionally been based on geography (targeting poor areas) rather than demographics (targeting groups of people) – exemplified by Communities First. Demographics should be taken into consideration otherwise impoverished people living outside Communities First areas might miss out, and Oxfam Cymru noted asylum seekers as a demographic which often are in need but don't live in these areas.
Oxfam also said the Welsh Government's approach was a lot like labelling poor people as "a fixed group separate from the rest of us", when poverty is a state people will find themselves in depending on changing life circumstances.
Women were said to be at higher risk of poverty than men because they're over-represented in low paid, temporary and part-time work, are more likely to be lone parents or live alone beyond the age of 80. Poverty is also linked to domestic violence, where abused women are trapped in violent relationships for economic reasons. Other at-risk groups include children (1 in 3 Welsh children live in an impoverished household), refugees and the disabled.
The Minister dismissed the need for a "big mapping exercise" as it would take up a huge amount of time and resources, but recognised that the Welsh Government could take more care on its data collection. She added that while geographical schemes are important, not all anti-poverty schemes are based on geography.
Increasing Household Incomes
 |
| Welfare schemes like Pension Credit and the Welsh Government-run Discretionary Assistance Fund have been underclaimed in Wales. (Pic : hmrctalk.co.uk) |
Due to changes in working practices such as the use of zero-hour contracts, work is no longer "the straightforward route out of poverty", and the Trusell Trust said many referrals to foodbanks were from the low-paid and underemployed. There was a need to develop opportunities "at the lower-end of the labour market" in sectors which are traditionally low-paid such as care and retail, though Prof. Millar said the creation of low-paid jobs subsidised by benefits would just "push the problem along".
On helping people into work, the Bevan Foundation called for targeted efforts amongst those who are hard to reach, like ex-prisoners and ex-substance abusers. Others said that efforts to help the disabled into work were "ineffective", and generic programmes like the Work Programme are only good for those who are work-ready.
Subsequently, there were calls for the Work Programme to be devolved because there would be better understanding of local labour markets; though there was criticism from Oxfam that as the scheme works on a payment-by-results basis, it doesn't help people who are "further away from the labour market".
There were points raised on the lack of affordable childcare and people not claiming benefits they're entitled too – Pension Credit is underclaimed by £168million in Wales. Also raised were cuts to local authority services such as libraries and transport, as well as concerns over digital inclusion – around 30% of people on Anglesey are said to have never accessed the internet – plus crisis payments, where the Welsh Government's Discretionary Assistance Fund (DAF) has underspent by £2.5million because of difficulties accessing the money, not a lack of need.
Conclusions
 |
| This is an incredibly important and useful inquiry, but the headline recommendation is typically Welsh. (Pic : National Museum Wales) |
Some of the findings were open secrets – high levels of "in-work poverty", lack of proper data, underclaiming benefits and concerns over whether the Welsh Government's anti-poverty schemes, like Communities First, were really delivering.
Though - despite a similar programme's noted success in Scotland - as is the usual case in Wales, the headline recommendation is to set up a committee. I don't get this - primarily Welsh - political obsession with "building alliances", "engaging with key stakeholders" and public consultations (which are often an excuse to rubber-stamp a decision that's already been made).
If someone is narcissistic enough to go into politics, they should have the gumption to stick their own neck out when making tough calls. They're not actors, and their job isn't to build up an audience to applaud them. We need more leaders, not administrators, and if there's one area of public policy where the country needs to be grabbed by the scruff of the neck it's poverty.
My opinion is that the collar-grabbing action is independence. Although funding is an issue, I'm not convinced it's down to that alone - especially when you consider just how much money has been thrown at tackling poverty down the years (including the welfare system). It's also down to innovation (or lack of), the mythologising of the industrial working class and labour movement, as well as a simple lack of ambition; and in Wales, there's no bigger signifier of a lack of ambition or ideas than setting up a committee.
The take home message from this report is the emphasis on targeting demographics and groups of people (preferably individuals) over geographical areas.
Give a family a fish, and they'll be fed for a day; teach a family to fish and they'll be fed for life; provide the family's neighbourhood with fishing engagement scheme coordinators backed by the European Social Fund, and you give fishing engagement scheme coordinators a well-paid public sector job taking up a sizable chunk of the local fishing engagement budget (more from Jac o' the North).
Nonetheless, it's good to have all this down on paper and, depending on the other three reports, it could provide a fantastic reference point for future Welsh governments. I can't criticise the quality of the inquiry – and I'm pleased the Committee rightly criticised the Welsh Government's record - but in terms of the recommendations, it's a bit of a stuck record and hasn't really told us anything we didn't already know.
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