Clarke demands government action on in-work poverty

Local London Assembly Member Anne Clarke AM has called on the government to address the endemic issue of low pay and raise the rate of Universal Credit to address in-work poverty in London.

36 per cent of the 57,822 people relying on Universal Credit in Barnet and Camden are in work, according to the latest Government figures.

A total of 21,034 people across Barnet and Camden are in work with pay that is so low that they are forced to access government benefits to make ends meet.

Assembly Member Clarke also demanded government take action on the causes of low pay, including zero-hour contracts, fire-and-rehire schemes and poor workers' rights that have all contributed to low pay.

Government schemes, such as the recent reforms to the Work Capability Assessment, push many into work but do not address the low pay that drives in-work poverty and causes workers to access income support.

Low pay has contributed to the fact that over half (51 per cent) of working-age Londoners living in poverty are already in work.

Universal Credit has also failed to keep up with rising costs, meaning that thousands of people in Barnet and Camden have not been able to buy basic goods.

90 per cent of low-income households on Universal Credit are currently going without essentials, according to data from The Trussell Trust and the Joseph Rowntree Foundation. Claimants are going without food, hygiene products or basic utilities due to Universal Credit not covering the basic costs of living.

Ms Clarke encouraged local organisations to join the more than 2,500 employers who now pay the London Living Wage, which is currently set at £11.95 an hour.

It is calculated to reflect the higher costs of living in the capital, giving a worker in London enough to afford the essentials. Paying the London Living Wage also sees reduced absenteeism, a boost in morale and better productivity.

The National Living Wage, set by the government, is currently £10.42, but is only available to workers who are 23 years old and over. For younger employees, lower rates of the National Minimum Wage apply.

Labour London Assembly Member, Anne Clarke AM, said:

“It is a travesty that so many Londoners are forced into in-work poverty by low pay and Government inaction.

“Ministers insist that getting people into work is the key to eliminating poverty but their own figures show that a majority of those claiming Universal Credit are already in jobs.

“On top of this, the Government is ignoring the poverty faced by those on Universal Credit, where Londoners cannot afford the essentials of food, hygiene products and keeping their homes warm.

“City Hall has been leading the way, providing free school meals, a cost of living advice hub and a warmer homes scheme providing grants for insulation.

“Now the Government must play their part by improving workers’ conditions and raising Universal Credit to ensure Londoners aren’t forced into poverty.”