Housing crisis fuels workers’ poverty
One in eight workers in the UK is now living in poverty as a result of the high cost of renting, new research has revealed.
The Joseph Rowntree Foundation has published a report Monitoring Poverty and Social Exclusion 2016, which says that 7.4 million people, including 2.6 million children, live in poverty despite being in a working family.
It reports that a record high of 55% of people in poverty are in working households and that in-work poverty has risen by 1.1 million since 2010/11 when the economic recovery began.
The report highlights the high cost of rent and insecurity in the private rented sector endured by people living in poverty, adding that 73% of people in the bottom fifth of the income distribution pay more than a third of their income in rent in the private sector. This compares to 28% of owner-occupiers and 50% of social renters who earn.
Helen Barnard, head of analysis at the Joseph Rowntree Foundation, says: “The UK economy is not working for low-income families. The economy has been growing since 2010, but during this time high rents, low wages and cuts to working-age benefits mean that many families, including working households, have actually seen their risk of poverty grow.
“Families who are just about managing urgently need action to drive up real-term wages, provide more genuinely affordable homes and fill the gap caused by cuts to Universal Credit, which will cost a working family of four almost £1,000 per year.”
Exclusion is a potential loss or specific risk that an insurance policy does not cover and they occur in all types of insurance policies. Common exclusions include: natural hazards (exploding volcanoes, earthquakes) war, nuclear fallout, wear and tear (anticipated through the use of a product, especially motor insurance), UFO damage to vehicles, vehicles “stolen” by vengeful spouses, travelling any pre-existing health problems and travelling to countries the Foreign & Commonwealth Office deems too dangerous.