The Wealth Chasm - 100 years of tackling poverty and inequality in the capital
1. 1
LVSC & Trust for London
conference on income
inequality in London
100 years
of tackling poverty and
inequality in the capital
The Wealth
Chasm
Danny Dorling
23rd November 2010
Clifford Chance
Canary Wharf
All C ause SMR
29 - 90
90 - 105
105 - 112
112 - 120
120 - 146
Booth-based Index O f Poverty
Low (richest)
High (poores t)
1991 Census based Index
Low (richest)
High (poores t)
map i
map ii
map iii
Poverty in London, 1896, 1991 and later mortality
See this and other talks as multimedia versions at http://www.sasi.group.shef.ac.uk/presentations/
2. 2
Purpose of talk is to explain:
“Why income inequality is
of relevance to all
Londoners, especially
at a time when the
capital is not only still
recovering from the
recession but also
facing severe cuts in
public sector spending”
1 in 10 of whose babies died in 1901 because they
tolerated poverty. Today’s equivalent is poor mental health
3. 3
“When I’m worried about something I can talk to my mum or dad”
“When I’m worried about something I can talk to my friends”
“When I’m worried about something I can talk to an adult other than my
mum or dad”. Children who answered ‘yes’ to at least 2 of these 3:
GOR
Emotional
health of
children
2008/09
Emotional
health of
children
2009/10 change
North East 63.6 56.7 -6.9
North West 65.0 58.6 -6.4
Yorkshire and The Humber 64.3 57.3 -7.0
Sheffield
East Midlands
60.4
61.9
56.5
54.2
-3.8
-7.7
West Midlands 63.6 57.8 -5.8
East of England 61.6 56.0 -5.6
London 60.2 53.2 -7.0
South East 61.6 54.8 -6.8
South West 62.7 56.2 -6.5
England 62.6 56.0 -6.6
Source: “Tell
US” Survey –
cancelled
2010
Children’s mental
health is getting
worse. Especially
in London
6. 6
poor 2001 %
13 - 16
17 - 18
19 - 21
22 - 24
25 - 27
28 - 31
32 - 34
35 - 37
38 - 40
41 - 47
poor change %
-6 - -4
-3 - -1
0
1 - 2
3
4
5
6
7 - 8
9 - 13
The maps looks
very different
when you give
everyone equal
space
Notice how in
the 1990s
almost
everywhere
the proportion
of households
that were poor
rose, but most
where highest
to begin with –
so fear rises.
7. 7
For sources see: The Geography of Poverty, Inequality and Wealth in the UK
and abroad: because enough is never enough, Applied Spatial Analysis and
Policy, 3, 2-3, pp 81-106. http://www.sasi.group.shef.ac.uk/publications/
2010/DorlingPritchard_2010_TheGeographyOfPoverty.pdf
and also for the source of data for the next figure:
Subjective well-being of young people, an OECD overview, Innocenti Report
We ended up at or
near the bottom of
many league tables
as a result – all
before the crash
8. 8
22nd out of
the 25+1
EU
countries
before the
crash for
child
poverty as
measured
by the
European
standard
We are
cutting back
on
‘transfers’,
starting with
the £165
maternity
grant.
9. 9
Greater London
parliamentary
constituencies
“Core Poor” cartogram of Greater
London parliamentary constituencies
“Exclusive Wealthy”
cartogram of Greater
London parliamentary
constituencies
We live in different
spaces, especially
the very rich who
are most dislocated
from society
10. 10
London’s place in the world economy
where cities orbit global capital.
As viewed from Houston
http://sasi.group.shef.ac.uk/maps/wcn_atlas3.htm
We are trapped in
thinking that
London can only
survive as New
York’s twin star…
11. 11
In June 2010
we learn the
councils to be cut the
(%) most are:
Doncaster
Redcar & Cleveland
Liverpool
Knowsley
Middlesbrough
St Helens
Blackpool
South Tyneside
North East
Lincolnshire
Blackburn with
Darwen
(and Sheffield –
singled out for cruel
and unusual cuts)
In April 2010 we learn
that – Gordon wanted to
“help people”:
“ Duffy: – but all these
eastern Europeans coming
in, where are they flocking
from?
Brown: A million people
come in from Europe, but a
million British people have
gone into Europe, you do
know there’s a lot of British
people staying in Europe as
well. So education, health
and helping people, that’s
what I’m about.”
The Times, 28/4/2010.
And:
The ten councils to be
cut the least are:
City of London
Ealing
Redbridge
Dudley (the only error?)
Barnet
Harrow
Brent
Havering
Wandsworth
Bexley
We will undertake
the most vindicate
of disproportionate
cuts to protect the
status quo
12. 12
October 20th 2010 – we were told how
savings would be made:
• One of the first announcements
was that new tenants of council
and other social housing will now
have to pay at least 80 percent of
market prices in rent. In one
stroke millions of low paid families
are to be excluded from living in
hundreds of towns, cities and
villages where they no longer earn
enough to “deserve” to be.
• There are many threats being
made to have to take any job or
be made to “volunteer” for no pay.
Then came the spending review
We think there is no alternative
13. 13
And then came more and more questions and doubt
• Housing benefit will not be paid for
people under the age of 35 who
live alone—this previously applied
only to those under 25.
• There would be a 10 percent cut
in council tax benefit for those who
cannot afford to live in certain
areas.
• The immediate question asked
was: Are the few remaining people
living on modest incomes near
affluent suburbs or in
economically successful towns
and villages to be cleansed
away?
We think we are not up to
doing anything better than this
14. 14
Even the mayor of London spoke up against his party
• The best-off fifth of society will
lose just 1 percent of their
entitlements to public services and
spending, the lowest losses of any
group.
• A million people currently on
employment and support
allowance due to ill health will
each lose £2,000 a year if they
cannot find a job.
• With the state pension age rising
rapidly to 66 years, only those with
private provision can now retire at
the normal age. Public sector
pensioners will have £1.8 billion
removed from them by 2014-15.
Pension credits will be frozen for
three years.
The ‘we’ who think this are a small minority
15. 15
It could be the greatest threat to health inequalities
• No family on benefits is to receive
more than the income of an
average family in work, no matter
what the circumstances of their
children. If you are poor—or are
made poor when you lose your job
or have a pay cut forced on you—
and have three or more children,
you may need to leave your town
for a new life in a cheaper area,
away from where the remaining
well paid work is.
• People with worse health will have
to move to poorer areas.
• This is a recipe to increase
inequalities between areas as fast
as possible. I think it makes
everyone worse off, so is in the
saddest sense ‘fair’, but only in its
likely stupidity of outcome.
6
7
8
9
10
11
12
13
14
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Difference between best
and worst-off districts by
life expectancy (years):
People
We think the price has to be paid
16. 16
Conclusion – keep asking
why are 16 or 20 countries better?
Everyone is worse off because there
is less social solidarity, more fear:
• The latest UN report lists those
European countries currently
having a higher life expectancy
than the UK as: Iceland (almost 82
years), Switzerland, Italy, France
(81 years), Sweden, Spain,
Norway, Austria (to almost 80
years), the Netherlands, Germany,
Ireland, Malta, Cyprus, Finland,
Belgium and Luxembourg. People
also live for longer than in Britain
in Australia, Canada and New
Zealand (and especially Japan),
but not in the United States
(where comparable life
expectancy is only 79.1 years)
Of the richest 25 nations in the world
the UK is the 4th most unequal by income
inequality (90:10 ratio UNDP figures).
We think we are held hostage
to the bond markets
17. 17
Conclusion – keep asking
why are we slipping down league tables of decency?
• Life expectancy is up in the UK,
but increased economic
inequality here would be
expected to move our rank
position below one of these four
countries next, to slip from 20th
place to 21st or 22nd out of 25.
• If that happens then there will
be falls in life expectancy in
some areas.
•
• … we have just moved below
Greece, and the cuts there are
far more equitable than here…
(salaries cut rather than jobs
and mostly benefits going…)
• People do live slightly shorter
lives now in Greece (but not by
2010 EU data),
• Portugal (more economically
unequal than the UK),
• Denmark (where smoking is
still very common) and in
• Slovenia (78.2 years).
All these figures are from
Table H of the most recent
UNDP human development
report (2009) and purport to be
for around the year 2007.
We think all this damage is just ‘collateral
damage’ that comes with success
18. 18
Our murder rate is again at Victorian levels,
as is the life expectancy gap between areas.
Material conditions might be much better but
often our mental health, fear and anxiety is worse.
We know we are not all in it together. We could be.
And we put
the young
in debt
19. 19
See this and other talks as multimedia versions at
http://www.sasi.group.shef.ac.uk/presentations/