Press release: RECESSION HAS GREATEST IMPACT ON EAST AND OUTER LONDON
PRESS RELEASE: EMBARGO UNTIL 06.00am, TUESDAY 12 OCTOBER 2010
RECESSION HAS GREATEST IMPACT ON EAST AND OUTER LONDON
Poverty in the capital has become increasingly polarised according to new research measuring the impact of the recession, which was launched today. Some areas, especially Inner West London, survived the recession well, whereas many others, particularly in Outer East London saw large increases in unemployment, numbers claiming Job Seeker's Allowance (JSA) and mortgage repossessions.
This is one of the key findings of a major new report, London's Poverty Profile, which has been carried out by independent think-tank New Policy Institute and published by Trust for London - the charity which is the largest independent anti-poverty funder in the capital.
The research challenges the conception that poverty in London is confined to the inner city and is ringed by wealthy suburbs. Poverty in the capital has become increasingly polarised but in a different way. Indicators highlighting unemployment, out-of-work benefits, debt, poverty and repossessions show that many Outer London boroughs, particularly in the East, have been more severely affected by the recession. Whilst the unemployment rate in Inner London has risen by 25%, in Outer London the rate has increased by 50%.
Across London there has been a dramatic increase in in-work poverty. Over 300,000 more Londoners are living in poverty in working households than was the case a decade ago. This figure has increased by nearly 50% from 630,000 to 940,000 Londoners. The result is that over half of the capital's low-income population is now living in a household where at least one adult is working.
The increase in poverty in working households means London still has the highest rates of child, working-age and pensioner poverty of any English region.
London's Poverty Profile, which comes only days before Chancellor George Osborne unveils extensive public spending cuts in his Comprehensive Spending Review, reveals that many parts of the capital are nowhere near as recession-proof as many believe, and some groups have been more affected than others. Young people have been hit hardest. Disturbingly, the unemployment rate among young adults is disproportionately high, with one in three of unemployed Londoners aged under 25.
The Profile highlights significant borough differences in the capital, illustrated by the proportion of working-age adults receiving JSA. In Barking & Dagenham, this has more than doubled between 2007 and 2009. All ten boroughs with the largest increases are in Outer London. These include seven in East London - Barking & Dagenham, Bexley, Enfield, Greenwich, Havering, Redbridge and Waltham Forest. Conversely, the three boroughs with the lowest rates of JSA increase are all in the Inner West of London - Camden, Westminster and Kensington & Chelsea.
The impact of the recession on London in comparison to other English regions is illustrated both by levels of problem household debt (defined as being behind with at least one bill) and by repossessions. The report provides the first systematic analysis of this and shows that 8% (230,000) of London households are in arrears with bills, compared to the English average of less than 6%.
The proportion of landlord repossessions in London is higher than anywhere else in England. Brent has the highest proportion of repossession orders in each of the last three years and nine of the ten boroughs with the highest rates of landlord repossession are in Outer London. For mortgage repossessions, the rate in London in 2009 was higher than any other English region except the North East.
"Many parts of London and many of its communities have been hit hard by the recession." said Bharat Mehta, Trust for London's Chief Executive. "We give over £6 million a year to help tackle poverty and inequality in the capital and this gives us a real insight into the impact the recession has had upon the lives of hundreds of thousands of Londoners. We therefore call upon the Chancellor carefully to consider what impact his cuts will have - and in particular who will pay the greatest price for them."
Peter Kenway Director of New Policy Institute said: "The proposed Government cap on housing benefit looks set to exacerbate the problems of polarisation we show in the report, making much of Inner London no longer affordable for poorer people. This risks increasing the levels of poverty in Outer London - a developing trend London's Poverty Profile highlights".
Media enquiries: Iain Taylor
Taylor Communications
01732 740573 or 07979 914217
Notes for Editors:
- Trust for London is the largest independent funder of projects tackling poverty and inequality in the capital. The Trust makes grants totalling over £6 million per year, supporting around 400 voluntary and community organisations in London at any one time. It was set up in 1891 and was formerly known as City Parochial Foundation. Charity registration number: 205629.
- Trust for London is able to provide interviews with a number of Londoners living in poverty who are prepared to speak about their experiences. It also has a number of additional video clips and case studies available. Interviews are also available with the authors of the report.
- New Policy Institute is a progressive think tank, founded in 1996.
- The report will be launched at the Institute of Contemporary Arts on Tuesday 12th October from 10am. The ICA is at The Mall, London SW1Y 5AH. If you would like to attend please contact us.
- The new report is available to download here.
For further information, see www.npi.org.uk and www.londonspovertyprofile.org.uk.