LPP 2011 London press release
Trust for London press release
Under embargo until 00.01hrs on 20 October 2011
Housing costs risk piling further pressure on public services in Outer London
New research released today (20 October) by Trust for London warns that the capital's housing costs are changing the character of London. As Inner London becomes less affordable, services in Outer London, which are already stretched, such as GPs surgeries, and schools, may come under increasing pressure.
London's Poverty Profile, conducted by the New Policy Institute, is an independent assessment of poverty and inequality in London. It finds that housing costs are a critical factor in explaining why London has the highest poverty rates in England. Taking into account housing costs, the poverty rate in London is 28 per cent, compared to 22 per cent in the rest of England.
Housing benefit changes mean that many parts of Inner London may become unaffordable for low-income families renting privately. The latest London's Poverty Profile reports that an estimated 104,000 households across the capital will be affected, with even families in one or two-bedroom properties losing up to £150 a month.
One effect of this could be that people move to Outer London, where there are often lower levels of public services per head. For example 35 per cent of outer London primary schools are already full or overcrowded, compared with 19 per cent in inner London. There are twice as many people per GP in Bexley and Redbridge than in Hackney and Lambeth.
For those families who choose to stay in Inner London, they are at increasing risk of overcrowding, poverty or homelessness. The report found that 220,000 London households already live in overcrowded accommodation, 60,000 more than a decade ago, with most of this increase in the private rented sector.
Bharat Mehta, Chief Executive of Trust for London, said: "This report shows that London is becoming more polarised, with some places becoming unaffordable for low and medium income families. We are deeply concerned about the increasing segregation of London and the pressure this puts on health, education and transport in certain areas of the capital. There is an urgent need for action to respond to the projected demand for key services in Outer London."
The report also highlights the extreme inequalities that exist in the capital: Babies born in Southwark, Croydon, Haringey and Harrow are twice as likely to die before their first birthday as those born in Bromley, Kingston and Richmond. Adults in Hackney are twice as likely to die before the age of 65 as those in Kensington and Chelsea.
Wealth inequalities in London are also particularly striking: The poorest 50 per cent have less than 5 per cent of financial or property wealth. The richest 10 per cent have 40 per cent of income wealth, 45 per cent of property wealth and 65 per cent of financial wealth.
Tom MacInnes, from New Policy Institute, said: "Our analysis highlights again that housing is the critical factor behind London's disproportionate poverty. The high and increasing costs affect everyone in the capital but especially the poorest and most marginalised."
Although many of the indicators in the report show various issues getting worse in London there is also some positive news: education outcomes continue to improve for children in poverty. Children eligible for free school meals in London are more likely to attain minimum developmental and educational standards at age 5, 11 and 16 than similar children in the rest of England.
Ends
1. Spokespeople and case studies are available.
2. A pre-publication copy of the report is available for journalists from http://dl.dropbox.com/u/238349/povertyreport2011-web.pdf
3. London's Poverty Profile is being launched at an event at Bishopsgate Institute on Thursday 20 October 2011 at 10am. After a presentation of the key findings, the Directors of IPPR (Nick Pearce) and Policy Exchange (Neil O'Brien) will debate the question: "Were we too quick to say the riots were not about poverty?" If you would like to attend please contact Charlotte Morris on 07967 818064.
4. Trust for London is the largest independent funder of projects tackling poverty and inequality in the capital. The Trust makes grants totalling over £7 million per year, supporting around 400 voluntary and community organisations in London at any one time. It was set up in 1891 and was formerly known as City Parochial Foundation. Charity registration number: 205629.
5. New Policy Institute is a progressive think tank, founded in 1996 and has undertaken significant research on poverty in the UK including work for the Joseph Rowntree Foundation, Save the Children and the Office for Fair Trading.
6. For further information, see www.trustforlondon.org.uk; www.npi.org.uk and www.londonspovertyprofile.org.uk
For more information contact Charlotte Morris on 07967 818064 or cmorris@trustforlondon.org.uk
Posted on 19 October 2011