Banbridge District Council 19 th March Measuring Poverty. Mike Tomlinson Queen s University Belfast.

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1 Banbridge District Council 19 th March 2013 Measuring Poverty Mike Tomlinson Queen s University Belfast

2 UN Copenhagen Summit 1995 Absolute poverty Severe depriva*on of human needs, including food, safe drinking water, sanita*on, health, shelter, educa*on and informa*on. Overall poverty Lack of income to ensure sustainable livelihoods; limited access to educa*on; increased morbidity and mortality; homelessness and inadequate housing; unsafe environments; social discrimina*on and exclusion. It is characterised by a lack of parncipanon in decision- making and in civil, social and cultural life. It occurs in all countries as a result of economic recession, the poverty of low- wage workers, and the urer desntunon of people who fall outside family support systems, social insntunons and safety nets.

3 Ireland NaNonal AnN- Poverty Strategy 1997 DefiniNon People are living in poverty if their income and resources material, cultural and social are so inadequate as to preclude them from having a standard of living which is regarded as acceptable by Irish society generally. Income DeprivaNon Households with low income CONSISTENT POVERTY Households lacking necessities

4 EU- SILC repornng from 2000 Common framework for collecnon of data on: Income Poverty Social exclusion Housing Labour EducaNon Health CONSISTENT POVERT

5 UK developments Ø PoliNcal commitment to end Child Poverty Ø Income measurement GB from 1994 Ø Northern Ireland from 2002/03 Ø FRS quesnons on deprivanon CONSISTENT from 2004/5 Ø Child Poverty Act 2010 POVERT

6 By 2020: 1. ProporNon of children living in low income households (<60% UK median income) must be <10% of all children. 2. Less than 5% should be in the combined low income and material depriva7on category by the same date. 3. Less than 5% of all children in absolute low income (1998/9) 4. Reduce persistent poverty by 2015 (3- year spell of income poverty)

7 LOW INCOME 2010/11 % of individuals <50% <60% <70% BHC UK South East Northern Ireland Rep. of Ireland AHC Income thresholds below median UK CONSISTENT POVERT South East Northern Ireland Rep. of Ireland - - -

8 ProporNon of individuals below 60% of median Contemporary median 1998/9 median CONSISTENT POVERT

9 Children living in low income households (<60% UK median income) 2010/11 Banbridge N Ireland UK Rela*ve Income BHC 19% 21% (93k) 18% AHC 19% 24% (105k) 27% Absolute Income (1998/9 base) BHC 13% (59k) 11% AHC 16% (70k) 18%

10 Measurement controversy CriNcism of 60% median as arbitrary Threshold approach does not measure depth of poverty RelaNve income measure means poverty may go up when living standards are rising and down when they are falling Mean/median confusion CONSISTENT POVERT

11 Mean/Median confusion CONSISTENT POVERT

12 Consensual poverty approach Two stages: Survey 1 Defining necessines (majority vote) Survey 2 Determine who experiences an enforced lack of socially perceived necessines Define the threshold at which people run the greatest risk of not being able to afford the socially perceived necessines

13 Is there a consensus?

14 Percep7on of adult necessi7es, 2002 and Regular payments to occupanonal/private pension HeaNng to keep home warm VisiNng family One week annual holiday Home computer Internet connecnon

15 Percep7on of children's necessi7es, 2002 and One week holiday away from home Outdoor playspace Friends round for tea/ snack once a fortnight

16 DeprivaNon items, Ireland and EU

17 DeprivaNon items, Ireland and PSE Omnibus survey

18 PSE items and acnvines (number) Domains Adults Children Food 4 3 Housing 4 2 Clothes 5 7 InformaNon 4 Durable goods 12 Personal finances 4 Social 14 7 Developmental 10 Environmental 1 TOTAL TOTAL >50% 26 24

19 Conclusion 1. Poverty is internanonally defined concept 2. Measures include relanve income AND deprivanon items 3. Some EU- SILC and Ireland deprivanon items do not achieve majority support (PSE Omnibus survey 2012) 4. Growing interest in Minimum Income Standards and Living Wage 5. Current UK measures under threat 6. UK Government moving debate towards causes (especially personal behaviour)