A Tale of Two Britain’s
The Stark Reality of Wealth Inequality and Child Poverty in the UK
I recently read an opinion piece in the “I” newspaper (21st May 2024) by Yasmin Alibhai-Brown titled "The poverty children in the UK are subjected to is deliberate – never forget that", in which her main claim was that "Things only get worse for millions at the bottom of the pile. And wildly better for those above." She is not wrong. According to the Department of Works and Pensions’ most recent data on child poverty in the UK, the child poverty rate for 2022-23 rose by 300,000 to 3.6 million children, and food insecurity jumped from 4.7 million to 7.2 million households, while according to the recently published Sunday Times Rich List for 2024, the aggregate increase in wealth of the top 10 billionaires between 2023 and 2024 is approximately £40.2 billion.
According to the Child Poverty Action Group (CPAG), the cost of raising a child from birth to age 18 for a couple in the UK (including rent and childcare costs) is estimated to be £160,692 for a child born in 2021, which is approximately £8,927 per year. Let's assume that to feed, clothe, and lift a child out of poverty, we would need about half of that annual cost, which is roughly £4,463 per child per year (adjusting for inflation up to 2024). To calculate how many children could be supported with the £40.2 billion we would divide it by the annual cost of raising one child, i.e.:
£40,200,000,000 ÷ £4,463 per child per year ≈ 9,007,350 children.
Therefore, the £40.2 billion increase in wealth of the top 10 billionaires between 2023 and 2024 could theoretically feed, clothe, and lift approximately 9 million children out of poverty for a year. This figure is more than double the total number of children (3.6 million) reported to be living in poverty in the UK in 2022-23, according to the Department for Work and Pensions data cited in the article. This calculation demonstrates the stark wealth inequality in the UK and how the increasing wealth of a few individuals at the top could potentially make a significant difference in the lives of millions of children living in poverty if redistributed effectively[1].
The growing disparity between the rich and the poor in the UK, as highlighted by the Sunday Times Rich List and the child poverty data, strongly resonates with the key arguments presented in Karl Polanyi's seminal work, "The Great Transformation." Polanyi's critique of market-driven economies and their impact on society provides a compelling framework for understanding the current state of inequality and poverty in the UK.
At the heart of Polanyi's argument is the idea that the self-regulating market system, when left unchecked, leads to social dislocation and inequality. The current situation in the UK, where millions of children face poverty and food insecurity while a handful of billionaires amass even greater wealth, exemplifies the consequences of a society that prioritises market forces over human well-being. Polanyi also contends that treating human beings and nature as commodities subordinate to market forces leads to social and environmental degradation. The resurgence of Victorian-era diseases such as rickets and scurvy among UK children today serves as a stark reminder of how market-driven policies can lead to the deterioration of human well-being. Furthermore, this resurgence draws parallels to the social ills depicted in Charles Dickens' novels set in 19th-century England. Dickens' works, such as "Oliver Twist" and "A Christmas Carol," shed light on the plight of the poor and the devastating consequences of inequality and social neglect. The fact that these issues have resurfaced in the 21st century UK is a stark reminder of the failure of modern society to prioritise the well-being of its most vulnerable members.
In addition to the alarming levels of child poverty, the UK is also grappling with a growing homelessness crisis. According to Shelter, a leading housing and homelessness charity, over 280,000 people in England were homeless in 2023, including 130,000 children. Many families are forced to live in temporary accommodation, such as bed and breakfasts or hostels, which are often overcrowded and unsuitable for long-term living. The rise in homelessness can be attributed to a combination of factors, including a lack of affordable housing, cuts to social welfare programs, and the impact of the COVID-19 pandemic on employment and incomes.
The hardships faced by a significant portion of the UK population extend beyond child poverty and homelessness. Many families struggle to make ends meet, with rising costs of living, stagnant wages, and insecure employment. The use of food banks has skyrocketed in recent years, with the Trussell Trust, the UK's largest food bank network, reporting a 33% increase in food parcels distributed in 2022-23 compared to the previous year. This is a clear indication of the financial strain and food insecurity experienced by a growing number of households.
The stark inequality, child poverty, homelessness, and widespread hardship in the UK today raise profound moral and ethical questions about the priorities and values of our society. As Polanyi and Dickens demonstrated in their works, the consequences of failing to address these issues are dire, not only for the individuals directly affected but for the social fabric as a whole. It is imperative that we reassess our economic and social systems, placing human well-being and dignity at the forefront, and take urgent action to address the growing disparities that threaten the stability and cohesion of our society.
References
1. Alibhai-Brown, Y. (2024, May 21). The poverty children in the UK are subjected to is deliberate – never forget that. The I newspaper.
2. Department for Work and Pensions. (2024). Child poverty statistics for 2022-23. UK Government.
3. The Sunday Times. (2024). The Sunday Times Rich List 2024. The Sunday Times.
4. Child Poverty Action Group (CPAG). (2021). The cost of a child in 2021. CPAG.
5. Polanyi, K. (1944). The Great Transformation: The Political and Economic Origins of Our Time. Beacon Press.
6. Dickens, C. (1837). Oliver Twist. Richard Bentley.
7. Dickens, C. (1843). A Christmas Carol. Chapman & Hall.
8. Shelter. (2023). Homelessness in England statistics. Shelter.
9. The Trussell Trust. (2023). End of year statistics for 2022-23. The Trussell Trust.
10. Office for National Statistics (ONS). (2024). Consumer Price Inflation (CPI) data for 2024. UK Government.
11. Bank of England. (2024). Inflation and wage growth data for 2024. Bank of England.
12. Ministry of Housing, Communities & Local Government. (2024). Affordable housing supply statistics for 2023-24. UK Government.
13. HM Treasury. (2024). Budget 2024: Impact of COVID-19 pandemic on employment and income. UK Government.
[1] Readers should note that this is a simplified calculation and does not account for the complexities of wealth redistribution or the long-term, systemic changes needed to address child poverty.