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Everything to Know About Poverty in the United Kingdom

Poverty in the United KingdomPoverty in the United Kingdom and the cost of living has increased steadily since early 2021. After Russia’s full-scale invasion of Ukraine, wholesale natural gas and oil prices soared, leading to more expensive bills for domestic consumers. The price of gas surged by 96% in a year and electricity has increased by 54% as it relies on gas for generation. Energy prices greatly impact the cost of living in the U.K., along with increasing prices of consumer goods such as food. The war in Ukraine has disrupted the country’s glass manufacturers, causing bottles for common products such as Coca-Cola to halt. According to the House of Commons Library inflation reached an astonishing 10.01% in July 2022, only dropping to 9.9% in August.

The U.K. remains at the high end of the worldwide inflation scale, ahead of the U.S. at 8.8% in April 2021, and 8.6% in the Eurozone from June. Low-income households spend more on housing, transport and food causing the high cost of living to disproportionately impact them, increasing poverty in the United Kingdom.

Movement in Geopolitics

Recent explosions of pipelines Nord Stream 1 which carried natural gas to Germany from Russia add pressure to the energy crisis. Although the pipelines have been inactive since early September, the accusations of sabotage of energy supply connections sparked anxiety in the U.K. and Europe. The fear has spread quickly as Norway, Europe’s largest natural gas supplier, has announced increased security on all of its gas and oil infrastructure. Panic could occur as millions are dealing with the mounting debt of rising food prices pitted against the high cost of energy bills.

Soaring costs of food and energy impact the most marginalized people the hardest. Bloomberg reports a peak inflation rate of 8.7% in June for low-income households. Whereas high-income households stood at 7.8% that same month. The data shows lived experience: if one earns more, one will likely have more to supplement rising prices; however, if one does not, one will likely fall short in purchasing power.

Confronting Crisis

Liz Truss’ tax cuts stunned economists and sent the pound into a free fall. On September 23, 2022, the British government announced a 45 billion pound tax cut ($48 billion USD) which caused the pound to drop to a record low of $1.03. In an unprecedented ‘mini-budget’ announced Friday, the government abolished the top 45% rate of income tax paid by the highest earners. As a result, YouGov polling shows that the Labour party has a 33-point lead over the Tories.

Only a year ago, Boris Johnson’s government made a decision to raise taxes to avoid public spending in the wake of the pandemic. Now the new government Truss has assembled caused markets to crash and investments in British industry to be withdrawn. In mid-September, the Bank of England announced that England might already be in a recession, as many are already feeling the sting of autumn without adequate heating.

Politico has quoted Truss in transit to New York this week saying, “Lower taxes lead to economic growth, there is no doubt in my mind about that,” although, with the value of the pound diminishing and the cost of goods, energy and transport already on a high the immediate effect is a negative one. The markets are one metric that helps weigh the viability of a Prime Minister. Currently, her reputation is not strong, even in her constituency. Truss has only two years to prove herself to voters with an election waiting around the corner in 2024.

Although Truss introduced the Energy Price Guarantee on September 8, 2022, which caps energy bills at 2,500 pounds ($2,788 USD) and went into effect on October 1, 2022. Even though this program will keep bills significantly lower than predicted, at least until January, many are skeptical of the Conservative government’s attempts to help people and businesses.

Charities Lending a Hand

Organizations such as Independent Age, Groundwork and the Smallwood Trust have stepped in offering grants for a range of people and communities affected by poverty in the United Kingdom. These grants will provide financial relief for material goods and basic essentials, as well as specialized needs.

Independent Age will give 25 grants of 45,000 pounds each to charities and community organizations helping older people through the crisis. Groundwork is partnering with One Stop Stores in awarding 1,000-pound grants to successful applicants. Smallwood Trust is focused on getting relief to women who need grants in the wake of the cost of living crisis. Women are especially important because they are underpaid and often overworked in society, on top of being the main caretakers in most households. As autumn begins, people are mobilizing to help each other through any difficult day, and that is always something to be thankful for.

During the period of volatility in the United Kingdom, the various organizations providing aid are extremely beneficial. Hopefully, with these charities’ continued efforts, poverty in the United Kingdom will reduce.

– Shane Chase
Photo: Flickr

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6 Facts About COVID-19 Vaccination in the United Kingdom

COVID-19 Vaccination in the U.K.The World Health Organization (WHO) officially labeled the coronavirus outbreak a global pandemic in March 2020. This declaration pushed scientists and pharmaceutical companies around the world to develop vaccines. By December 2020, the United Kingdom, which includes Scotland, England, Wales and Northern Ireland, became the first country to approve COVID-19 vaccines for the public. To date, the U.K. is on track to achieve herd immunity, with close to 67% of its total population vaccinated with one dose and nearly 50% vaccinated with two doses. Although definitions of herd immunity vary, it generally involves vaccinating a majority of the population to reduce the spread of disease. Considering the success of COVID-19 vaccination in the United Kingdom, below are six facts about the current situation.

6 Facts About COVID-19 Vaccination in the United Kingdom

  1. The U.K. developed the Oxford-AstraZeneca vaccine. University of Oxford scientists worked in collaboration with the English pharmaceutical company AstraZeneca to develop this vaccine. In January 2021, an 82-year-old man named Brian Pincker was the first to receive the Oxford-AstraZeneca vaccine in England. The U.K. government currently has access to 100 million doses of Oxford-AstraZeneca and 50 million doses of the Pfizer, Moderna and Janssen vaccines.
  2. Vaccination programs vary across the U.K. England, Northern Ireland, Scotland and Wales each have their own health care systems and chief medical officers. As a result, vaccination programs and policies vary between nations. For example, Scotland first vaccinated residents in care home facilities, whereas England vaccinated community members above the age of 80. Despite these differences, all four nations generally agree on the priority list of people eligible to receive vaccines. They all follow the advice that the U.K.’s independent Joint Committee on Vaccination and Immunization gave them.
  3. The U.K. offers vaccines to certain age groups. The National Healthcare Services (NHS) in Scotland, Wales and Northern Ireland currently offer vaccines to people older than 18. However, NHS England currently offers vaccines to people older than 23. As the rollout of vaccines continues in the coming months, this age limit will lower. In all four nations, people under the required age limit can receive the vaccine if they have pre-existing medical conditions, including lung conditions, diabetes, kidney disease, etc., that make them clinically vulnerable to COVID-19.
  4. The U.K. offers vaccines to frontline workers. Across the U.K., frontline workers can receive COVID-19 vaccines regardless of whether they meet age requirements. Frontline workers include healthcare workers, social workers, hospital receptionists, mail carriers, funeral home directors and childcare providers.
  5. The U.K. will donate vaccines to other countries. In a recent G7 meeting in Cornwall, British Prime Minister Boris Johnson pledged more than 100 million vaccines to countries in need. As a group, leaders of the G7 countries, including the U.S., U.K., Canada, France, Germany, Italy and Japan, committed to donating 1 billion vaccines to countries around the world.
  6. COVID-19 vaccination in the U.K. can reduce poverty. At the beginning of the pandemic, unemployment in the U.K. reached 5% for the first time since 2016. This is a direct result of in-person venues and institutions closing for public health concerns. COVID-19 vaccination efforts can help reopen in-person institutions, reinstate jobs and lift people out of poverty.

Looking Ahead

Overall, COVID-19 vaccination in the United Kingdom shows success as more than 79.3 million people have received at least one dose of the vaccine. People receive these vaccines in community pharmacies, hospitals, local general practices and other vaccination sites around the country. As a result, the U.K. government is currently on track to vaccinate all adults soon.

In the words of British vaccines minister Nadhim Zahawi, this constitutes a “fantastic milestone and cause for celebration.” As more people get vaccinated, the U.K. government will be able to ease lockdown restrictions and reintroduce a sense of normalcy in society.

– Chloe Young
Photo: Flickr

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Brexit and Its Effects on the European Economy

BrexitJanuary 31, 2020, was a historic day for the European Union, for it marks the day the United Kingdom left the Union based on a public vote (referendum) held in June 2016. Seventeen point four million citizens opted for Brexit in 2016 and, after several negotiations and talks, the U.K. is now the first former member of the European Union. An important and large-scale decision such as this has the ability to distort economic stability greatly.

Trade

The EU is the world’s largest single market that allows free trade among all its members. It is also responsible for negotiating trade policies on behalf of its members, establishing a single, strong voice throughout various negotiations. Since Britain is no longer a member, it must create its own suitable trade policies with the countries it wishes to trade within the Union. Britain also needs to negotiate for its own demands. It was projected that the U.K. stood to lose $32 billion after Brexit, with no trade agreement in place between the U.K. and the EU. Losses incurred are more likely to increase as the EU accounts for nearly 46% of the U.K.’s exports. Researchers project that Ireland’s exports to Britain may drop by at least 10%. This creates a serious trade imbalance and hence contributes to the national deficit of the nation.

Food Poverty

British citizens consume a significant amount of imported food. Brexit could lead to a rise in food poverty, as about 30% of food is imported from the EU and 11% is from countries whose trade policies were negotiated by the EU. Since there is no trade policy in place, food insecurity is bound to rise. Food prices will likely rise 6% by June 2020, according to researchers. Overall, an increase in food poverty may be on the horizon.

Immigration

The U.K. had announced that post-Brexit only highly skilled immigrants will be able to secure jobs and the additional requirements have already created an impact on the economy. Immigrants mostly work low-skilled jobs and the implementation of this policy has already lead to shortages. At least one in 11 posts are vacant. Also, immigrants occupy nearly one-sixth (140,000) of the 840,000 care worker jobs. The new regulations will soon prompt vacancies and greatly affect people with disabilities and the elderly.

The Potential Solutions

Trade talks between the U.K. and the EU are taking place effectively. British Prime Minister Boris Johnson proposed a “Canada-style free trade agreement” which the EU is prepared to accept, given the fact that the agreement would demand no tariffs or quotas from them. This shows that negotiations are productive and that the U.K. is trying to cause very little disturbance to the economy. Aware of its reliance on imports from the EU, the U.K. has opted for a mutually beneficial free trade agreement. As the cost of imports and exports are reduced, the trade imbalances are corrected. This in turn will influence food poverty as the general price levels will decrease and imported food will become affordable.

Additionally, there are multiple organizations and government schemes that help combat food poverty in the U.K. For example, The Trussell Trust and other independent foodbanks have distributed nearly 3 million food packages between 2018 and 2019. The organization Healthy Start allows the purchase of basic food necessities for pregnant women and mothers with infants.

What Are the Benefits of Brexit for the UK?

The U.K. is free to trade with other nations such as Japan, the U.S. and India without EU restrictions. This will stimulate growth in all nations involved in possible free trade and help tackle domestic issues, such as unemployment and hunger. Effective trading can lead to increased employment opportunities and better living standards.

The U.K. has given almost half a trillion pounds to the EU to be a member of the bloc. The amount the U.K. will save is significant enough to be directed at rising food insecurity, short-term deficit and unemployment. The U.K. is also able to craft specific policies to suit its needs instead of being subject to the ones crafted by the EU. The ability to do this helps the U.K. and other nations involved, as all policies will be tailored to be mutually beneficial and appropriate.

Overall, Brexit is a challenge. It is difficult to adjust to and likely poses serious threats to economic stability in the near future. However, this is only a short-term issue. Once the transition period is over, a structured agreement between the E.U. and the U.K. will help their economies regain stability.

– Mridula Divakar
Photo: Flickr