Over a quarter of people in London are living in poverty, higher than in any other part of England, according to a new report. Overall 28 per cent of people in the capital are living in poverty, 7 percentage points higher than the rest of England.
And the situation is worse for young adults, with 15 to 25 per cent of 16 to 24 year olds unemployed.
And of the 20 English local authorities with the highest levels of child poverty 7 are in London, according to the report out today by Trust for London.
Worryingly, the study found that a quarter of households in London rely on housing benefit to meet their housing costs, compared to a fifth in England as a whole. 40 per cent of those claiming housing benefit are in work.
Average monthly rents are £1,300 in inner London, compared to £950 in outer London and £475 in England.
The report adds that the level of rents combined with the restrictions on housing benefit means that “large parts of London are now unaffordable to low-income households”.
“The outlook for poverty across the country is worrying as a result of some of the welfare reforms. But in London, it is the reforms to housing benefit, which will cause the real problems,” the report adds.
Trust for London chief executive Bharat Mehta said that the fact London’s economy performed better than the rest of the country “obscures the fact it has the highest poverty rate”.
“To tackle London’s poverty and inequality policymakers must focus on solutions such as building more affordable housing and encouraging employers to pay a Living Wage,” he said.
And author of the report Hannah Aldridge said that London’s low income households were in a “precarious position”.
“The benefit restrictions that have been introduced take no account of the high cost of renting in London. Most of London, and not just its fashionable bits, is now unaffordable for households in the private rented sector and without work. If poverty in London falls it may well be because the poor are being forced out.”
The 4th edition of London's Poverty Profile shows London's problems with child poverty, young adult unemployment, low pay and high housing costs:
DOWNLOAD Report http://t.co/QtuJTwgDCv
- Overall 28% of people in London are in poverty, 7 percentage points higher than the rest of England.
- Of the 20 English local authorities with the highest levels of child poverty 7 are in London.
- The unemployment rate in London at 7% is still higher than the England average.
- The unemployment rate in the 'Olympic boroughs' of Barking & Dagenham and Newham is 10%, higher than any of the major English cities.
LPP shows how the high costs of housing mean that benefit cuts will be much deeper in the capital. Even at the lower end of the market, rents in London are twice as high as the England average:
- Average monthly rents are £475 in England compared to £950 in Outer London and £1,300 in Inner London.
- A quarter of all households in London rely on housing benefit to meet their housing costs, compared to a fifth in England as a whole.
- Housing costs are not just problems for those in the centre of London without a job: 50% of housing benefit claimants live in Outer London and 40% are in work.
However, the newly published report shows that:
- Unemployment for this age group has risen from 15% to 25% in the last ten years.
- At 1 in 4, London's young adult unemployment rate is, jointly with the North East, the highest of the English regions. It compares to the English average of 1 in 5.
- For those that do find jobs, the picture is still difficult: 50% of
young adults in work are low paid (below the London Living Wage). DOWNLOAD Report http://t.co/QtuJTwgDCv
Email: respect_unemployed@ovi.com
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