Why ethnicity matters for local authority action on poverty

The importance of ethnicity is often overlooked in discussions about poverty.

Poverty is a growing problem. Already around 1 in 6 people in the UK live in poverty and it’s getting worse:  In 6 years’ time, the Institute for Fiscal Studies predicts that 1 in 4 adults will live in poverty, and 1 in 3 children.  With resources to tackle poverty getting ever more scarce its essential that the resources that are available are used in as smart a way as possible. That means that they need to be based on accurate information and be as joined up as possible.

Poverty in the UK is higher among all ethnic minority groups than white British people.

It varies between and within ethnic groups but is also different in different places. People from Indian and African Caribbean backgrounds are more likely to be employed if they live in Luton than Leicester. In contrast, the Pakistani community have better opportunities and employment outcomes in Leicester than Luton. Local differences demand local responses by local government.

After all, the consequences of poverty fall heavily on local areas and local service providers.  Poverty affects children and adults’ health, education, their chances of being in work and many other aspects of their lives. For local authorities, many of their biggest areas of work are made much more challenging because of the poverty their residents experience.

Local authorities play a key part in reducing poverty and minimising the damage it does. 

But many find that their efforts are less effective than they hope.  One reason is that they haven’t looked sufficiently at how different groups of people are affected by poverty and why some solutions may not help everybody equally.  A new briefing from Joseph Rowntree Foundation sets out how understanding the links between ethnicity and poverty in their areas can help local authorities improve and tailor their services and make their economies work better for everyone.

Some of the underlying links between poverty and ethnicity are specific to particular groups.

This includes racism and discrimination, English language skills and experiences of immigration and asylum. But many – such as limited social networks, negative workplace culture and low demand for skilled work – are relevant to people living in poverty across all ethnicities.

Local authorities can make a big difference by integrating action to address poverty and the links with ethnicity across key functions. The way local authorities behave as employers, what they expect of employers in their supply chains, the direction of local economic and skill strategies, the relationship between services and different ethnic groups, all impact on poverty. Using data and knowledge about the needs and experiences of different groups in an area need not cost additional resources. Doing this can make local economies work better and help services deliver more for less.

Anna Nichol is Director at Egino, a new community interest consultancy.