The impression is that if only poor people would organise their lives more effectively, work harder at work or at finding work, and help each other out a little more, the problems would disappear.
This is not just a comforting fantasy for the comfortably-off, it’s a dangerous delusion. It ignores the huge structural changes affecting the British economy, thanks to technology, international competition and immigration. The top 1 per cent have seen their share of earnings increase from 7 to 10 per cent in two decades, but median pay has been static or falling for ten years. The decline is sharpest for those at the bottom of the scale.
Poor people are getting poorer because full-time jobs are disappearing or wage rates are being cut. The Joseph Rowntree Foundation shows that the income of those in the bottom tenth of the income range peaked in 2004 and has been falling ever since. At the same time there have been above-inflation rises in essential costs. Since 2008 gas and electricity prices have risen by almost two thirds, food by a third, transport by a quarter. The result is that incomes and wealth are being squeezed as never before. Half of all families on average to low incomes have no savings whatsoever.
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