Report warns of 'humanitarian crisis' over poverty

Susie RackWest Midlands
News imageBBC A hoarding surrounding a development site is covered in graffiti in Hanley in Stoke-on-Trent. A man holding a shopping bag walks past colourful green orange, white and yellow symbols on a black hoarding. High-rise buildings in a dilapidated state can be seen behind.BBC
Austerity and the cost-of-living are driving poverty in Stoke-on-Trent, researchers say

A city is close to crisis point, with cost-of-living pressures and public spending cuts leading to increasing numbers living in poverty, researchers have found.

The University of Staffordshire report found an unprecedented increase in debt enquiries and use of food banks in Stoke-on-Trent.

Lead researcher Prof David Etherington said: "We are heading towards a humanitarian crisis. The cost-of-living for many people in Stoke-on-Trent means that they are struggling to meet their basic needs and pay their bills."

Nationally, the government has said it would tackle poverty through policies such as removing the two-child benefit cap and fuel bill reductions.

Researchers recommended an overhaul of the welfare system, and further investment in employment support.

In Stoke-on-Trent, 25.9% of the population have no educational qualifications on leaving school, according to the report.

A total of 10.4% of over-16s are entitled to Personal Independence Payment (PIP) and there has been a 158% increase in people seeking Universal Credit since before the pandemic.

A total of 36% of children, or 18,989, live in low-income households, compared to 25.7% a decade ago.

News imageCitizens Advice Staffordshire North and Stoke-on-Trent A red-brick Victorian building on two stories, with Advice House written above the main entrance. The picture is taking from the opposing pavement. A modern glazed entrance to a grey building is adjacent on the right.Citizens Advice Staffordshire North and Stoke-on-Trent
Citizens Advice Staffordshire North and Stoke-on-Trent carried out research for the report, in partnership with the University of Staffordshire

The report's authors said statistics showed the situation in the city was worsening and pointed to a decade of Conservative welfare reforms, amounting to an estimated "annual financial loss per working age adult of £880".

"What we are seeing is more people falling deeper into debt. Food aid has become the main source of welfare support for many people, with the demand on food banks now at unprecedented levels," Prof Etherington said.

The city's food bank reported a high number of first-time referrals, with users citing rising costs, physical health issues and debt as the main reasons for needing vouchers.

Citizens Advice Staffordshire North & Stoke-on-Trent, which co-authored the report, said it was seeing "an unprecedented increase in demand for advice services", according to chief executive Craig Browne.

Debt and benefit inquiries ranked highest, he said, and residents faced "continual problems" in navigating the benefit system "to have a standard of income that means basic necessities can be met".

He also predicted the government's flagship Employment Rights Bill roll-out would "significantly" increase the need for advice.

"We cannot over-emphasise the alarming nature and extent of the poverty crisis in Stoke-on-Trent," the report concluded.

Researchers described austerity as "a political choice" and "false economy" and called for other options, such as "a more progressive and fair taxation model", to be considered.

They also recommended an assessment of the impact of spending cuts, investment in affordable childcare options, a halt to benefit sanctions and better employment support.

The Chancellor, Rachel Reeves, highlighted several policies in November's budget which she claimed would reduce poverty.

They include promised cuts in fuel bills, a rise in the minimum wage and tackling child poverty by removing the cap on Universal Credit for larger families.

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