Oldham child poverty soars above national rate, stats show

Millions of people across the country on the lowest salaries would need to double their income just to escape poverty, research by the Joseph Rowntree Foundation (JFR) reveals as it launched its flagship UK Poverty Report this week.

The foundation is calling on those who want to govern the UK to tell voters what they will do to "turn the tide on two decades of political failure" which the research suggests has left people in "deepening poverty".

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This includes 14.4 million people in total, with 8.1 million working-age adults, 4.2 million children and 2.1 million pensioners living in poverty. 

Nearly two-thirds of working-age adults in poverty live in working households, which increased by three percentage points between 2020/21 and 2021/22.

The number of children and pensioners in poverty also rose in the same period - and Oldham has been dubbed as one of the worst places for child poverty across the country.

In the north west, the regional poverty sits at 23 per cent, which is broadly in line with the national rate (22 per cent) while the child poverty rate sits at a higher 34 per cent.

The highest spot for child poverty across the region is Manchester, at 45 per cent, closely followed by Oldham (44 per cent).

Pendle, Blackburn with Darwen and Bolton follow closely behind at 43, 42 and 42 per cent respectively.

On the flip side, Ribble Valley, Trafford, Cheshire East, South Lakeland and Chorley have the lowest child poverty rates across the region.

The JFR study points out that the rate of child poverty in 12 out of 39 local authorities in the north west increased by more than five percentage points between 2014/15 and 2021/22, while four local authorities saw a fall.

The highest increases were seen in Oldham, Pendle and Blackburn with Darwen which increased by 11 percentage points.

This so-called "poverty gap", the amount of money needed to bring the incomes of people in poverty to the poverty line, has grown wider, JFR has argued.

The study refers to the six million of the poorest people across the country who would need to more than double their income to escape the poverty trap.

Using an example of a couple with two children under 14 in very deep poverty, JFR claim they would need a whopping £12,800 more to reach the poverty line.

The analysis also reveals poverty trends since the 1970s show that rates grew "rapidly" under the Thatcher Government and have "remained stubbornly high since then".

It continues: "Poverty fell during the first half of the New Labour administration but started to rise after 2005.

"Overall, poverty has barely moved since Conservative-led Governments took power in 2010, with every year’s poverty rate since then being between 20 per cent and 22 per cent."  

Paul Kissack, group chief executive of the Joseph Rowntree Foundation, said:  “It has been almost twenty years and six Prime Ministers since the last prolonged period of falling poverty in the UK.

"Instead, over the last two decades, we have seen poverty deepen, with more and more families falling further and further below the poverty line. 

“Little wonder that the visceral signs of hardship and destitution are all around us – from rocketing use of foodbanks to growing numbers of homeless families.

"This is social failure at scale. It is a story of both moral and fiscal irresponsibility – an affront to the dignity of those living in hardship, while driving up pressures on public services like the NHS.   

“It’s a story which can – and must – change. 

"Governments are not powerless to act, as we have seen throughout our history.

"One way politicians can take action in the next parliament is to enshrine in law a guarantee that people will always be able to afford the essentials, such as food and household bills, through our benefits system.   

 “2024 will be a year of choices, and any political party wishing to form a new Government must set out a practical and ambitious plan to turn back the tide on poverty in the UK.

"That plan – to ensure the dignity and respect of every member of our society – will be essential for achieving any broader ambitions for the country”.   

Martin Lewis, founder of MoneySavingExpert.com and The Money & Mental Health Policy Institute Charity said:  “I warned at the start of the energy crisis that I was out of tools to help many on the lowest incomes. 

"Now we have hit the stark reality that 100,000s of people in the UK, even after they’ve had professional help from money charities, are still deficit budgeting – so their income is less than their minimum necessary expenditure.

"Definitions of poverty are tricky, especially when based on relative incomes, but that smells like a clear indication the problem is getting worse.
 
“And let’s be plain, once people are in the deepest mire, it’s not a Money Saving Expert you need, its policymakers and regulators to sit up take note and address these deep-rooted problems – which is exactly what I hope they do with this Joseph Rowntree Foundation report highlighting the situation and calling for change.” 

Oldham Council and the Department for Work and Pensions have been approached for comment.

Got a story? Email me Olivia.bridge@newsquest.co.uk