Select Committee on Social Security Minutes of Evidence


Examination of witness (Questions 80 - 85)

TUESDAY 16 JUNE 1998

DR ALAN MARSH

Mr Goggins

  80.  I am quite interested to explore a little bit more about the severe hardship measures because whether you approach the issue of poverty and inequality from an academic point of view or whether you just talk to people who are experiencing poverty, the thing which hits you is the very hidden things which make people poor. They are very often hard to measure. You talk about the incidence of problem debts. Often debt has far more impact on a person's poverty than their actual level of income. I just wondered from your studies what you could tell us about that, how you measure it and what success measure might be appropriate.
  (Dr Marsh)  I would detain you too long if I were to drag you through all 70 components of this measure. Certainly we alighted on debt because combined with the failure to afford things and coming onto other kinds of financial stress the thing to concentrate on is not the presence of debt in the house—I can introduce you to people in fabulous amounts of debt but they service the principal so they are not poor—but petty debt which you cannot repay is the bane of low income families and puts them under tremendous stress and has all kinds of other effects as well. It is important to note that it is the failure to service debt which is the problem. On average this happens to families on income support two or three times a year. They get into a position where they cannot repay the debt. Ask any Social Fund administrator. Quite often Social Fund loans are not given because people are already in too much debt. As Richard Berthoud once said, they were too poor to be helped.

Ms Stuart

  81.  At the risk of sounding a terrible philistine, actually all I need to do to find out the fact that single parents' health started deteriorating after the age of 33, that their problem is their own health, their own behaviour all that, is go to a couple of estates in my constituency. The real challenge is what to do after this. There was an article recently in the Journal of Paediatrics which said that if you start to look at parenting behaviour and the way that cascades down the generations, that kind of behaviour which is within families, that kind of bad health behaviour, I am getting a sense of frustration of saying we are all gathering this really nice information which tells us this really nice longitudinal stuff. What do we do with it?
  (Dr Marsh)  Your visit to the estate would of course have given you the same information I have been talking about. It would not have quantified it for you nationally, it would not have told you what the national size of the problem was, it would not have told you how it interacts with other factors, it would not tell you about response to other changes in their lives or by how much. You asked me how you predict. You predict by making these calculations and then within bands of confidence saying if that continues then you will get more of this. You put numbers to it and people who make policy in the Department of Social Security need numbers as well as the description that they too could find out with a visit to their local estate.

  82.  If we look at the work of the Social Exclusion Unit which is looking at things like the worst estates, that kind of recognition that there are some problems for which you need national policies for which you need those kinds of benchmarks, you need to know where you are moving from, are we not moving to a position where we have to recognise that some of the hard core social exclusion of real deprivation will not be solved by national policies, will be solved by extremely targeted approaches to very specific problems.
  (Dr Marsh)  The majority of people who are poor, deprived, whatever, defined by the measures we have been discussing, do not live in deprived areas.

  83.  Evidence.
  (Dr Marsh)  The majority of people who live in deprived areas are not deprived.

  84.  I represent a constituency which everybody assumes to be leafy Birmingham: Edgbaston. I know that if I look at a couple of roads in a ward from the address I cannot tell you whether I am talking about a £½ million property or one of the tower blocks where 80 per cent of the mothers are single parents on benefit. It depends what a deprived area is. In the context of my constituency, I have solid pockets which in terms of square mileage may be terribly small but to me they are solid deprived areas.
  (Dr Marsh)  I agree with you entirely. There are clear known estate areas in every part of Britain which need to be reconnected to the rest of society. The infrastructure is breaking down, we all know what is happening to all those bright estates which gave us so much hope for a social future in the 1960s. We must be clear. We have 1.6 million lone parents in Britain and they do not all live on bad estates. What our nationally representative research does for you is to show you the spatial distribution of the problem, shows you how much of the problem might respond to a direct interventionist local strategy and how much of it has to be tackled in different ways.

Mr Wicks

  85.  That is an interesting dialogue and it reminds me of another Labour Government in the 1970s and the controversy about the area programmes and the spatial approach. In thanking you, may I say on behalf of the Committee that we found that a very valuable session, given your track record and command of data? I was particularly struck by your emphasis on severe hardship, because in a sense, although one is aware that one could come up with a number of potential success measures, perhaps several hundred if one wanted to, I suppose it is at least worth asking the question as to whether there are two or three or four key indicators or success measures in social security equivalent to the well-known economic indicators. If you had any other evidence or information which you would like to pass us on severe hardship, either quantitative data or methodological work, we would find that interesting.
  (Dr Marsh)  I should be glad to.1[2]

Mr Wicks:  Thank you very much.

  


2   A paper "The Benefit Fault-line" by Alan Marsh from Unemployment and Public Policy in a Changing Labour Market, was submitted but is not printed here. Back


 
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