Tackling Poverty and Deprivation in Dundee. Peter Allan & Derek Miller Building Stronger Communities Group 23 June 2011

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1 Tackling Poverty and Deprivation in Dundee Peter Allan & Derek Miller Building Stronger Communities Group 23 June 2011

2 Why is Poverty a Priority in Dundee? Building a successful City Huge scale and impact of inequalities Not just about money, but it definitely is about money Not just about survival & not a lifestyle choice The right to be heard & valued and fully participate

3 Poverty in Dundee : The Headlines Almost a third of places in Dundee in worst 15% in Scotland Almost a third of people in Dundee experiencing deprivation (41,454) 29,035 people in Dundee are income deprived (20.4%) 56% (17,830) children in Dundee live in low income households

4 Where are the places in greatest poverty?

5 Who lives in poverty in Dundee? Children Lone parents Unskilled workers/ unemployed Larger families BME households Families with disabled adults Vulnerable groups Chaotic lifestyles Women

6 Factors Affecting Poverty in Dundee Employment (and low pay) Income maximisation and benefit advice Education and skills Childcare Affordable and accessible services

7 New Policy Challenges Recession Welfare Reform Employment Income gap and in-work poverty

8 Impact of Welfare Reforms Emergency Budget in June 2010 Chancellor announces a reform of the welfare system and linking of budgets to the Consumer Price Index (CPI) instead of other Retail Price Index (RPI). Total savings to the UK Welfare Budget System - 11 billion Rights Advice Scotland forecasts the effect in Scotland as a loss to the Scottish Economy of between 514 and 614 million.

9 Impact of Welfare Reforms Housing Benefit 75% of Dundee s claimants will suffer losses totalling 1.28 million Disability Living Allowance - The proposed 20% cut will see Dundee claimants loss around 8.52 million annually Incapacity Benefit it is anticipated two thirds of current claimants will no longer qualify resulting in losses in Dundee of between 4.9million and 8.5million Total losses from these three benefits alone between 14.7 and 18.3 million Change from RPI to historically lower CPI will bring an additional 2.82 million loss to Dundee residents.

10 Impact of Welfare Reforms Wider Issues Universal Credit Intended to simplify the system, it will be an integrated working age credit incorporating a basic allowance, with additional elements for children, disability, housing and caring Replaces Working Tax Credit, Housing Benefit, Income Support, income-based Job Seekers Allowance and income-related Employment and Support Allowance

11 Impact of Welfare Reforms The downside of Universal Credit Direct payments will be made to one individual in the household Merging housing costs and living costs will make social tenants even more vulnerable to debt UC unlikely to cover rent costs AND basic needs Risk of significant increase in homelessness

12 Welfare Reforms/Financial Inclusion Dundee already has a Financial Inclusion Strategy and a network of advice agencies and projects working to help people in need Key points from the strategy Advice and Support There are 10 agencies and projects working directly on Benefit, Money and Debt Advice:- Brooksbank Centre; Citizens Advice Bureau, Dundee North Law Centre; Dundee Carers Centre; Discovery Credit Union; Dundee Energy Efficiency Advice Project (DEEAP); Shelter; Hillcrest Housing Association; DCC Welfare Rights; McMillan Tayside Welfare Benefits Partnership All are Scottish National Standards accredited

13 Financial Inclusion Discovery Credit Union low cost loans and increasing membership Fuel Poverty and Dundee Energy Efficiency and Advice Project Prevention Save By The Bell and Curriculum for Excellence Financial capability Linking Financial Inclusion agencies with the GIRFEC network and tackling child poverty Developing a Corporate Debt Recovery Policy Reviewing the Welfare Rights Service within the Council and linking it with front-line services and staff

14 Jobs and Employability What s happening in Dundee?

15 % of Working Age Population in Employment % Dundee City GB Scotland * Year to September Year Source: Annual Population Survey (Nomis)

16 % of Working Age Population Claiming an Out of Work Benefit % Dundee City GB Scotland * Based on November Data Year Source: DWP Benefit Data (Nomis)

17 Change in Job Numbers in Dundee City Jobs Year Dundee City Council Company Database

18 What Are We Doing About it? Employability Programme Employability Pipelines Registrations Job Outcomes Education and Training 577 Declining Resources Work Programme

19 Impact on Communities Welfare changes = changed expectations around looking for work Fewer Jobs Fewer opportunities Increasing competition for these Jobs and Opportunities School Leaver destinations

20 A Framework for Tackling Poverty in Dundee Our people will experience fewer social inequalities Social Inclusion Increase social inclusion, decrease inequality, stigma and discrimination of people living in poverty Improving resilience, aspirations and purpose for people in poverty Financial Inclusion - Increase financial inclusion and security, and reduce income inequality and fuel poverty Communities and Neighbourhoods Health Learning and Employability Build social capital, connectedness and trust in disadvantaged communities Improve health and healthy behaviour for people in poverty Increase learning, skills and employment opportunities for people in poverty Promote safe and supportive environments at home, at work and in the community

21 What will we do next? A new anti-poverty outcome framework for Dundee City-wide and local poverty profiles A combined anti-poverty and financial inclusion strategy eg. job creation, social enterprises, joined up services etc. An assessment of welfare reform & review of services Improved Equality Impact Assessment Reflect the views and lives of people in poverty Engage the whole Partnership

22 What can the BSC Group do? How do you think issues like welfare reform, employment and poverty will show up in your area? What do the new local community plans say about them? Are there new ways you think you could respond to them as Forums? What would local priorities be and what support would you need to implement them?