Created: Thursday, 02 November 2017 10:49
Written by Matt Glass
Many working parents aren't earning enough to support their families adequately
Ten years after the global financial crash, capitalism is proving incapable of providing adequate living standards for the mass of the working class in Britain. An annual report by the Institute for Fiscal Studies (IFS) shows that the burden of the crisis has been heaped onto the poor, and young workers in particular. In contrast, the amount of national income taken home by the top 1%, or households with annual incomes of £275,000 or more, has risen from 7% to 8.5%, meaning they have recovered the ground they lost in the aftermath of the last recession. According to Living standards, poverty and inequality in the UK: 2017, median incomes are at record levels; the ONS says the wealthiest tenth of households in Britain own 45% of the nation’s wealth – the poorest half just 8.7%. This vast inequality accompanies stagnant poverty rates; relative poverty* is 22%, representing no improvement since 2000-01. Matt Glass reports.
On 22 September, Conservative Prime Minister Theresa May boasted that ‘employment – people in work; people taking home a wage, a salary, to support their family – is at record levels, the highest levels since records began’. With unemployment at 4.3% in May-July 2017, this is technically true, but in-work poverty is also at a record high. In 1995-96 45% of non-pensioners in relative poverty were in a working household. This has risen to two thirds. In 1990, 20% of children in working families were in poverty. That figure stands at 24% for 2015-16.
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