Education Not Preventing Poverty

from One Stop finance UK

Research is showing that education is failing to resolve the poverty problem among Britain’s ethnic minorities.

The Joseph Rowntree Foundation (JRF) claims that only 20 per cent of the UK’s white population live in poverty, whilst 40 per cent of ethnic minorities live below the poverty line.

The minorities that find themselves struggling with poverty are not divided evenly. Bangladeshi and Pakistani minorities are unlikely to find employment, even if they possess a university degree. These minorities are less likely to be employed than someone who is white with an equivalent education.

The Pakistani and Bangladeshi women are “much less likely” find work than their British or Indian counterparts.

The report concludes that ethnic minorities are paid less and are “overlooked” for employment and concludes that education is failing “to close the gap”.

“Although the past decade has seen some improvements, there are still some very serious problems which remain unsolved,” JRF director Julia Unwin said.

“We need an urgent rethink from government and employers so that minority ethnic groups do not miss out on opportunities in the workplace and higher educational attainment is properly recognised.”

This is forcing many of these UK consumers into a vicious cycle of poverty. Even if these people try to pull themselves up with retraining, self-employment, and better opportunities for their children, the high cost of personal loans for people in high-risk categories keeps these people from escaping poverty.

This is an example of how higher interest rates are hurting societies most vulnerable. These consumers cannot obtain low interest secured loans, forcing them to pay higher interest, fines, and fees.