Why governments must face up to the failure to tackle inequality

Just when you think you can’t get any angrier about the depth and scale of poverty, another report challenges you to dig deeper into those “anger reserves”. The latest instalment of the Joseph Rowntree Foundation’s “Monitoring Poverty and Social Exclusion” work takes our understanding of the struggle faced by so many to a new level.  That people in work cannot make ends meet says a lot about the labour market which allows companies to offer shockingly low wages – three fifths of those moving from unemployment are moving into jobs which don’t pay the living wage. What is worse is that people get trapped in crap jobs and get caught in a cycle of poverty. As the Scottish Government announces its programme later today, it’s worth noting that over one fifth of people of working age with NO children are living in poverty. Where is the support for them?  Investment in childcare won’t help. And whilst people pat themselves on the back as the economy appears to be recovering, wages are still not rising with the cost of living and underemployment is a significant challenge. Overall, we see a country which is deeply divided.  As unemployment continues to fall, you might think that this is good news. Well, for many it’s not as it means moving from a punitive benefits system to jobs which are insecure and pay an absolute pittance. Two thirds of those in work now but unemployed a year ago are in low-paid work. Parents continue to go without to ensure their children are fed and kept warm and safe.

Continuing to invest in companies who pay below the living wage must stop

Moreover, the challenges faced by disabled people in accessing work is exposed in the Joseph Rowntree Foundation’s report – with many wanting to work but not able to secure employment. This probably makes me most angry of all. The call by the Expert Group on Welfare for a strategic review of disability support remains relevant. Of course the political focus over the next few days will be on Smith and whatever the Commission reports on Thursday (watch out for our response to that). How we use any additional powers to tackle the disgrace of poverty is critical. Continuing to invest in companies who pay below the living wage must stop. Ensuring we see the living wage in every public contract must be a priority.  More importantly, how people in poverty shape those new powers is what I will be looking for. But what we need more than anything is complete honesty about how policy (devolved and reserved) has failed far too many in our society. The Christie Commission made a powerful call to centre public services on tackling the fundamental inequalities outlined by the Joseph Rowntree Foundation. That must be the starting point for the new Cabinet, for the Government programme and for whatever comes out of Smith.