Liverpool leads the poverty league

from IC Liverpool

by David Bartlett, Liverpool Daily Post

THERE were more people living in poverty in Liverpool at the height of Tony Blair’s premier-ship than under Margaret Thatcher, it was revealed last night. The figures show that in 2000, inner Liverpool had a higher percentage of people on the breadline than any provincial city in England.

The Joseph Rowntree Foundation, the social charity which compiled the research, revealed 41.2% of people in the area were classed as breadline poor, the highest number since 1970. While those regarded as “poor” were probably better off than in the 80s, the rest of the country has increased its wealth more, leaving Liverpool relatively poorer.

Leading economist Peter Stoney, honorary senior fellow at Liverpool University’s economic department, said Labour had failed to provide enough incentives to get people off benefits and into work.

He warned the situation could get worse in April when the 10% income tax rate is abolished.

Liverpool City Council leader Warren Bradley accused Labour of failing to deliver on its 1997 electoral promise to reduce the gap between the rich and the poor.

According to census data, the inner Liverpool population grew from 196,348 in 1970 to 263,533 in 2000.

In 1980, the year after Mrs Thatcher took office, 27% were on the breadline, by 1990 when she left office the figure stood at 33.6% or 75,294. And in 2000, the number of people on the breadline stood at 108,454.

Last night, Labour councillor Jane Corbett, who represents Everton, one of the poorest wards in the country, said people were not living in the same degree of poverty as the 1980s but that because the wealth gap had widened, the pictured seemed worse than it was.

Cllr Corbett added: “In the Thatcher years, the gap between income levels unravelled dramatically, that gap is now embedded in society.

“The city council must prioritise the most deprived wards, which they’re not doing at the moment.

“A lot of money is going into the right areas, but they are also missing some of the big ones – such as the way the youth service was remodelled – which exacerbates the inequality that exists in the city.

“It’s impacting very hard on a lot of Liverpool.”

While the latest figures only stretch to 2000, Mr Stoney said the picture was still accurate today as the government’s own Index of Multiple Deprivation listed Liverpool having 13 of the 100 most deprived areas.

“The free market interpretation is that taxation became more burdensome under Blair which made it harder to get into work and come off benefits,” he said.

“It’s going to get even worse in April when the 10% income tax rate is abolished.”

Joseph Rowntree’s definition of breadline poor is people living below a relative poverty line, and “as such excluded from participating in the norms of society”. The definition is made up of a number of measures, like not having central heating or sole use of amenities, a car and long-term illnesses. It also includes the core poor, the poorest of the poor.

In parts of the Liverpool constituencies of Riverside, the western part of West Derby, and north east Birkenhead between 50% and 70% are breadline poor.

This contrasted with areas like north Crosby and Hoylake where less than 20% were said to be in poverty.

Cllr Joe Anderson, leader of the Labour group, said the challenge was getting people with low skill sets in disadvantaged areas trained up and in to work.

He accused the council of concentrating too much on the city centre.

But Cllr Bradley said: “Blame clearly lies at the government’s door. They came into government on the premise they would break down the barriers between the rich and the poor, and they have not.”

Ben Wheeler, co-author of the report, said: “The thing about research like this is that it confirms in a relatively scientific way what people already knew.

“But what has really stuck us doing this research is the extent of the gap between wealthy and poor, and the extent of the segregation between them.”