Million fewer Britons live in poverty since Tories came to power
So much for Labour’s shroud-waving...
A MILLION fewer people are living in poverty today than when the Conservatives came to power in 2010.
In total, 8.9million were impoverished in 2016-17 according to official figures – down from 9.9million when Labour left office.
The number of children living under such conditions has fallen by 300,000. It means a record low of 14 per cent of the population is in ‘absolute’ poverty – defined as earning less than 60 per cent of what the average wage was in 2010, adjusted for inflation.
This amounts to around £22,300 a year for a couple with two children.
The figures from the Department for Work and Pensions were welcomed by Conservative MPs, who said it showed that the party was championing working people.
But critics said that, using a different measure, poverty is unchanged – and they argued too many children are still struggling below the breadline.
DWP minister Kit Malthouse said: ‘It makes sense that poverty rates are falling while the employment rate is increasing.’
The employment rate is currently 75.3 per cent – its joint highest level ever – with 32.3million people in work.
Right-wing economists said that tax cuts for business had boosted the economy, creating extra work. Increases in the minimum wage have also helped the poorest.
The improvement comes despite warnings from Labour that inequality is increasing because of cuts to spending and benefits designed to bring the national debt under control.
Matt Kilcoyne of the Adam Smith Institute said: ‘It’s welcome news for the country that a million fewer people are in absolute poverty. It also shows that austerity hasn’t fallen hardest on those least well off.’ He added that the biggest cost for most families now is housing – with rent and property prices higher than they should be because of stifling regulation.
‘Prices and rents are constructed by a lack of supply, and government should promise a boost to everyone by reforming planning and getting Britain building,’ Mr Kilcoyne said.
Mark Littlewood, director general at the Institute of Economic Affairs, also called for the Tories to go further and slash more red tape. He said: ‘Reform of planning laws to bring down housing costs and deregulation of the childcare sector would go a long way in improving the situation of many hard-pressed families in the UK.’
Overall inequality was largely unchanged, with the richest and poorest households both seeing their incomes rise by 1 per cent.
However, opponents of austerity said that the figures were not good enough. They pointed out that on a different measure – relative poverty, which measures the size of the gap between poor people and those on middle incomes – 10.4million are still struggling to get by, the same as seven years ago.
TUC chief Frances O’Grady said: ‘If you work hard, you shouldn’t have to worry about making ends meet, but these figures show that despite rising employment, millions of people in working households are trapped in poverty.’