Gap between haves and have-nots widening, report warns

The growing gap between the UK's "haves and have-nots" is in danger of becoming a "chasm", a report has warned.

Research by the Centre for Social Justice (CSJ) think tank argues the most disadvantaged are no better off than they were 15 years ago.

It highlights issues including stagnant wages, family breakdown, poor housing, crime and mental health problems.

The government said it had provided support to help with the rising cost of living.

The report by the CSJ's Social Justice Commission, Two Nations: The State of Poverty in the UK, says the country is "deeply divided", with the "systemic problems facing those at the bottom of society in danger of becoming entrenched".

"For too many Britain is broken and the gap between the haves and have-nots is in danger of becoming a chasm," the report adds.

It argues the situation worsened as a result of lockdowns during the Covid pandemic, pointing to increased mental health problems among young people, a jump in school absences and a rise in the number of people on working-age benefits.

Andy Cook, chief executive of the CSJ, said: "Lockdown policy poured petrol on the fire that had already been there in the most disadvantaged people's lives, and so far no one has offered a plan to match the scale of the issues.

"What this report shows is that we need far more than discussions on finance redistribution, but a strategy to go after the root causes of poverty - education, work, debt, addiction and family."

The commission behind the report is chaired by former Sunday Times editor Martin Ivens, and includes other figures such as former Bank of England governor Lord King, the Labour mayor of Greater Manchester, Andy Burnham, and Conservative MP Miriam Cates.

The research included a poll of more than 6,000 people, half of which were on the lowest incomes, conducted by J.L. Partners.

The commission, which will report its policy recommendations next spring, also travelled across the UK to more than 20 towns and cities and heard from some 350 charities, social enterprises and policy experts.

The poll found six-in-10 of the general public say that their area has a good quality of life, compared to less than two-in-five of the most deprived.

The report argues that for many of the poorest people, "work is not worth it" as the financial rewards can be marginal.

"In the most left behind communities, work is typically poor quality, insecure, and offers little progression," it says.

"Increasingly, people are turning to welfare, rather than wages, in order to unlock additional income."

The report says real average weekly pay growth in the UK has remained stagnant since the 2008 financial crisis, leaving people worse off.

It also highlights evidence of worse mental health in deprived groups.

The commission's analysis found 40% of the most deprived report having a mental health condition, compared to just 13% of the general population.

The report argues the poorest are hit harder by family breakdown, with a teenager growing up in the poorest 20% of households two-thirds more likely to experience family breakdown than a teenager in the top 20%.

Lord King said: "Money is not the only solution to the problem of deprivation. One glimmer of light is the institution of the family - rather than government - as a place of nurture, support, and fulfilment.

"No family is perfect, and families come in all different shapes and sizes. But if we are able to do more to support the family, then we can prevent the creation of an 'unhappy generation'."

A spokesperson for the Department for Work and Pensions said: "There are 1.7 million fewer people, including 400,000 children, in absolute poverty when compared to 2010. But we understand some families are still struggling.

"This is why we have worked hard to halve inflation and are providing on average £3,700 per household to help with the cost of living, including increasing benefits by over 10% this year."

The spokesperson added: "Our Back to Work Plan will help up to 1.1 million disabled people, people with long-term health conditions or the long-term unemployed to look for and stay in work."