No longer 'managing': The rise of working poverty and fixing Britain's broken social settlement

Article

In this paper we trace the emergence of a poorly understood social challenge and one which symbolises Britain’s broken ‘social settlement’: the continued rise in working poverty since the beginning of this century.

Our welfare system is built on the notion that work is the main route out of poverty and this government has promised to ‘level up’ opportunity through skills, jobs and economic growth. Yet for increasing numbers of working families around the country, the promise of social mobility through ‘hard work’ as a route out of poverty alone is failing to deliver.

We argue for greater priority to be given in welfare and economic policy to bringing down the high costs of housing, childcare and other essential goods as a proportion of household income, as well as reforms to genuinely ‘make work pay’.

Related items

  1. View of Bank of England, Royal Exchange, and Duke of Wellington equestrian statue (1844) with skyscrapers and construction in background.

    Navigating in the fog: Why the OBR should hold its nerve on the productivity forecast

    The fiscal watchdog is under pressure to downgrade its forecast, costing the chancellor billions – but this would be premature.
  2. A busy bus full of people of all ages. An older couple smile at a younger woman with a baby in a pushchair

    Everyday concerns: What people want from transport

    Transport has a key role to play in achieving the UK government's missions and improving lives. 
  3. An unrecognisable woman playing a slot machine in a social club

    Reforming gambling taxation: How to lift half a million children out of poverty

    A key priority for the government’s upcoming child poverty strategy should be to remove the two-child limit and scrap the household benefit cap.