An easy guide to reducing poverty

 

I have a sure fire way to reduce poverty in the UK. It would be quick. It would be cheap. And it would involve not one single human right being violated.

My simple idea would probably end poverty in time for next Christmas. And best of all it would mean handing more than £100billion back to the taxpayer. We don’t need to kill anyone. We don’t need to massage the figures. We don’t need to rob from the rich and the wealthy and give to the poor.

I’m not even talking about some insane judgement of what poverty. I’m talking about standard poverty. I’m talking about all those people on less than 60 percent of the mean income in the UK.

Indeed I much prefer the quite sensibly weighted, and widely used measure of poverty that only counts disposable income after income tax, with housing costs are stripped out as well.

www.poverty.org.uk has an excellent explanation of this measure, and how the weighting works. But put simply it means a man living alone needs £115 a week after housing and income tax costs to avoid being in poverty, while a couple with two children need £279 a week.

By that measure a little over 20 percent of households are in poverty in the UK. And that brings me to my solution. Let’s sell off the NHS and give an equal share of its annual cost to every man woman and child in the country. Doing so would mean a hand out of £33 per week to everyone, effectively eliminating poverty all together.

Sound crazy? Well here are the figures.

The NHS presently costs us £110.5billion per year. And there are 61.4million men, women and children in the UK. That equates to a £1717 per person this year that we could save by not paying for healthcare anymore.

Meanwhile the mean annual income from which the above poverty level is calculated is £14,317.

Those of you good at maths will have worked out already that £1717 is just 12 percent of the mean income. So if we distribute it equally to absolutely everyone, the mean would rise by 12 percent too.

That means every weighted level of poverty would rise by twelve percent. So the man on his own would now be in poverty if he had less than £129 per week. The two adults with two children would now be in poverty with less than £312 per week to spend.

But think about what £33 per person does to the incomes of our two hypothetical examples.

The man on £115 percent, literally on the poverty line, would now have £148. That is a 29 percent rise that takes him well away from a poverty line weekly income of £129. To stay in poverty under my proposal he would have to be living on less than £96 today.

The couple with two children would see their income rise 47 percent from £279 to £411. Yet the poverty line for them would have risen only to £312. They would have to be on just £147 per week right now to still be in poverty under my plan.

However, I have to ask, do you see the flaw in this plan?

We would solve poverty at a stroke. We could even do to education what I’m suggesting for the NHS and add another £80billion d to the poverty beating pot. We could then means test the payouts to give more to the poor and less to the rich.

And yet those we help out of poverty would almost certainly end up far worse off because of it.

This has of course been a long winded way of saying we need to rethink poverty entirely.

We need to rethink the situation in which poverty is merely a matter of cash. After all, our reasons for thinking poverty is bad are not about cash anyway. We want an end to child poverty because poverty in our youth correlates strongly with an adulthood of drug addiction, criminality, physical and mental ill-health, worklessness, and family breakdown.  

So in poverty we take a social problem and monetarise it in a simplistic way. And that can’t be good for policy making.

For example, if the Government has to cut £10billion of spending, would you choose to cut it from the NHS or financial support for the poor? Far more importantly, would the poor be better off if it was cut from the NHS or from support for the poor.

That’s a tough question to answer. But it is one worth asking. You see, no party and no campaign group has tried to answer it.

I don’t have the resources to do so for this blog. I don’t know the cost of drug addiction to a person’s life, or of dependence on benefits. I also don’t know the extent to which those things can be attributed to degrees of poverty. But if free vocational training for children in poverty was found to better improve their future employment prospects than handing out cash, should poverty campaigners, the left, the right, and the centre not all want to know that?

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: