Monday, 21 May 2012

Action needed to tackle social housing inequality

A major study into economic inequality has said more must be done to tackle the wealth gap between social tenants and the rest of the population of the UK.

The government-backed report, An anatomy of economic inequality in the UK, has found the median household wealth for social tenants is £18,000, compared with £270,000 for mortgagors, and £410,000 for outright owners.

It also says a third of social tenants are in poverty, and only half of men and 42 per cent of women in social housing are in paid work, compared with 80 per cent of mortgagors.

The study has been produced by the National Equality Panel, a body set up at the request of minister for women and equality Harriet Harman, and chaired by London School of Economics academic professor John Hills.

Its other findings include ‘profound and startling’ differences between deprived and affluent areas. Median total wealth in the poorest tenth of areas is only 6 per cent of the national figure, hourly wages are 40 per cent lower than in the most affluent areas, and only 55 per cent of working age adults in the poorest areas of England are employed.

The report calls for action across public policy to address inequality. ‘The “neighbourhood renewal” agenda itself needs renewal,’ it notes.

‘We also need to be more successful in supporting social tenants towards and into work, and in supporting saving and asset building, given tenants’ very low levels of wealth.’

Overall, the report finds some of the widest gaps between social groups have narrowed in the last decade, but that ‘deep seated and systematic differences in economic outcomes remain between social groups across all of the dimensions we examine’.

Professor Hills said: ‘Most people and nearly all political parties subscribe to the idea of “equality of opportunity”. But advantage and disadvantage reinforce themselves over the life cycle.

‘It is hard to argue that the large and systematic differences in outcomes which we document result from personal choices made against a background of equality of opportunity, however that is defined.’

The Government Equalities Office funds the work of the National Equality Panel. Its chair, professor Hills, was the author of an influential report on the future of social housing, published in 2007.

Readers' comments (26)

  • Having imported poverty during the last 12 years how can anybody be surprised at the result.

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  • I think the figures for homeowners may be innacurate due to all you wealthy Londoners...

    Kass should spend some of his £18,000.00 on that toilet.

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  • A fair tax system that addresses the inequalities in our society is overdue, including the payment of taxes by non doms or let them take their tainted money elsewhere.

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  • John | Wed, 27 Jan 2010 09:55 GMT

    Labour has done more than any other government before to fight poverty, albeit without much success but nevertheless has put some effort into it.
    I do not see on what your accusation of Labour having imported poverty comes from.

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  • "Melvin Bone | Wed, 27 Jan 2010 10:16 GMT...

    Kass should spend some of his £18,000.00 on that toilet."

    With all the things needing fixing in my flat I would need at least £60,000, so maybe you pass onto me to me some of your £410,000.

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  • What about private rented sector tenants? Not mentioned in the article.....

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  • our service men and women do a fantastic job but the latest idea of giving them 50% off the price of purchasing their houses does not help this inequality

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  • Why don’t they look at the debt mortgagors have. One way of reducing equality is taxing normal peoble more, then they will also sit on their back side with out working as they could even be less well off by working.

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  • Will we ever move on with this debate? People are not (relatively) poor because they live in social housing. They live in social housing because they are poor. Anyone who's surprised at the outcome of this research must be in ignorance of the Pope's religious affiliation. Bet it cost a few bob, though.

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  • Kass - perfect retort re: £450k! You haven't seen Save the Children’s summary yesterday? - does not make good reading re: child poverty and widening gap. Diabolical.

    Jay - not sure what the answer is re: service personnel but do know that their families are often left back in UK in c**p accommodation with rubbish repairs, many barracks and other sold off, irony some for social housing, there's also a good number of homeless ex personnel living rough. Support system for them, shameful.

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