The average household in poverty pays almost £500 a year extra for essential services such as credit, energy, and insurance. The cause is 'the poverty premium' which refers to the extra costs incurred by low-income households when purchasing the same or similar essential goods and services as households on higher incomes.
This study (May 2021, Loughborough University Centre for Research in Social Policy) summarises estimates of child poverty after housing costs in England 2014/15-2019/20. Lambeth (our 'area of benefit') comes 8th, with 42.6% of children in households below 60% median incomes after housing costs in 2019/2020. This is above the London average of 38% and the UK average of 31%. See the report here.
"Despite living in a global city with a level of economic performance to be proud of, many Londoners struggle to make ends meet, secure good quality affordable housing, or tie down the decent work they need to lift themselves above the poverty line. As a result, poverty is higher in London than in any other region or country in the UK. Across a wide range of indicators, there is a gulf in outcomes between Londoners on low incomes and those who are better off, both in the capital and across the rest of the UK." More
London Challenge Poverty Week is a chance for us to raise our voices against poverty in the capital and show what needs to be done to tackle it. During the week, Londoners will be joining forces to highlight that for too long, low pay, insecure hours, high housing costs and cuts to social security have been pulling many of us into poverty. It’s not right that parents cannot afford childcare or are having to turn to foodbanks. Nor do any of us want to live in a city where our health and prospects are held back because of how much money we have. We'll be posting material about London Challenge Poverty Week here.
Marcus Rashford, the Manchester United footballer, has set up a 'child food poverty task force' representing the UK’s biggest food brands, with the aim that they will work together to back solutions to food poverty, he revealed in a letter sent to MPs. If you support this initiative, consider writing to your MP.