December 3rd, 2017, not a date instantly recognizable in history, but an important milestone none the less. This day in history we witnessed the mass resignation of all four members of the UK Government’s Social Mobility Commission. like me, I am sure you are fighting back the tears of sorrow before asking yourself, what?
The Social Mobility Commission (SMC) was created way back in 2010 by the UK government around the same time as the Child Poverty Act, and later the Welfare Reform Act 2012. Its role is to advise and monitor the government’s policies, and success in implementing them, on all aspects of social mobility, child poverty, and socio-economic disadvantages. Well that all sounds lovely but what does that really mean?
Social mobility is a funny phrase, it sounds such a basic concept. It simply refers to the movement of individuals, families, etc. from one social class to another. The working class person, who has “done good” and is now firmly middle class and shopping at Waitrose [1]. Social mobility is normally measured in generations, what class the children are in compared to where their parents are, but remember what goes can come down. Social mobility is not just about success stories.
Child poverty, pretty much speaks for itself. There have been many statistics over the last decade in regards to child poverty. It is estimated by the Government that around 3.7 million children are classified as living in a low-income family, this is where their families are living below the average wage of around £25.000 p.a. This is 30% of the total number of children living in the UK.
Socio-economic disadvantages, another long word. Sociologists love a big word to categorize complex and broad influences, and this is no exception. To be classified as a disadvantaged you must judge yourself and your abilities on whether you have had to overcome barriers, or are being blocked from success, based on your social status. It encompasses the other two areas as well as throwing in a few more for luck. All in all, it is safe to read that if you feel that you cannot achieve the goal you have set for yourself, despite your hard work and dedication, because you are blocked by an external force then you are probably a victim of socio-economic disadvantages.
All of the above rings true with me, mainly because this is the story of a teenage me. I was raised in a low-income family, I didn’t go to University, I had low ambitions common to the town I grew up in, Basildon in case you are wondering. There was one thing I had going for me, apart from my winning personality, I live in Essex and London is easy to get to. I managed to climb the social ladder with hard work and ambition, but I still see myself as working class, but I don’t have the eternal struggle of feeding my children or wondering how to pay the electric bill, so in many ways, I am most definitely not. My Father, a man I very much admire for his dedication to ‘shovel shit’ for money to feed and clothe me, is a man who was subject to socio-economic disadvantages. A man whose education does not represent or do justice to his intelligence or ability, who moved from Northern Ireland to England to find a better life (which he clearly did as he met his wife), but a man whose potential was cut off in it’s prime. A man who spent 18 years correcting my English and encouraging me to be ambitious, a man who inadvertently let rise to my ridicule at school as I was deemed posh for saying pork and not powk, and knowing that water has a T in it, at least I managed to grow a thick skin.
With all my success and social climbing, I am left wondering where would the 20-year-old me start now, and I am not so sure I like the odds. You see the 20-year-old me would have just spent the last decade in real poverty, not just low income. I would have been educated in a system creaking at the seams, where even the most gifted teachers are battling against a very strong tide. Would my ambitions be the same? Well in many ways yes I think I would still be able to survive, you see I still have that ace up my sleeve, London. My proximity to London opens up the doors to many worlds, but if I didn’t live here I am not so confident of my success.
So I am left wondering about that 30%, whilst I feed and clothe my children, whilst they get the best education, whilst I have the time and energy to encourage them, what will become of this 30%.
So we turn to government, we demand action, and they tell us they all want a fairer Britain (why they always forget to mention Northern Ireland I will never know), but as this resignation has shown there is a lot more work to be done.
So how do we fix this problem? As always, it is a complex mix that requires long-term and sustainable action, but I feel there is one major area we need to really focus on, cost of living.
It is quite hard to establish a truly accurate figure, but taking the HMRC statistics it would suggest that 70% of workers are below the average wage figure, with a further 15% on the average wage. I can also say, without providing much evidence that the UK is suffering a severe housing shortage, it’s on the news and everything. Transport costs are on the rise, and investment is not forthcoming. Again looking at the reporting issues with the rail network and being a commuter it is safe to say we are not really getting value for money. Costs of living are up and wages are stagnant, I shall also assume this is not news to you.
So what can we do?
The only thing we can do is action to reduce the cost of living, we need to drive down the costs whilst we encourage the economy to grow. One of the biggest costs to the individual is affordable housing, it is also one of the biggest negative impacts on our economy. Both of these are well known and publicised yet we, the public, seem content to let various governments and politicians ignore these. The cost of housing has been fuelled by the significant rise in house prices and private rents:
Average house price in the UK £233,257 [2], but with average wages at £25,000 and the maximum mortgage being 4.5 times your salary, that means you need savings of £120,757 to buy the house. Oh, you also need £2,165 for the stamp duty, a few thousand for legal fees etc. Either way, someone on the average wage cannot afford to buy a house, let alone the 70% who are on low wages.
Private rents average £901 per month. Someone on the average wage has around £1,700 a month after tax, they will now spend more than 53% of their money on rent. The average rent from a housing association or council is £390, allowing a bit for the private rentals to be nicer than the housing association, and you get wide goods included it is still safe to say that private renting is double that of social housing.
There is also the impact on the economy, one of the biggest influences on economic growth is confidence of stability, apply that to housing it can be argued that when we have stability in our home we have more confidence to spend. I privately rent, so I am at the mercy of my landlords, to fair they are very good so I am lucky there, but at any point, I could be given two months notice. That is two months notice to find suitable digs at the same price I am paying or less. Now last time this happened I ended up in a different town due to availability, my children are now in school so you can image the stress that would cause. If I was in a Council or Housing Association property not only would I be safe in the knowledge that I will never be evicted as long as I pay the rent, but I would also be £500 better off a month. With the security I have with this new arrangement I would be at ease to spend that money, thereby helping the economy grow by £6,000 a year. I also have the security to know that if I find myself out of work the Government will pay my rent, at the moment if I got housing benefit it would leave me with a £300 a month shortfall and all that lovely government money would be paid away to my private landlords and not the Council.
Now some people will always want to own their home, or privately rent, I’m not against either. What annoys me is that investing in social housing seems to be a taboo subject.
The government is determined to build 300,000 houses a year, yet is not actually building houses. They want to make it easier for building developers to build houses. That’s the same as me scoring the winning try against Saracens on Sunday [3].
Why are we not borrowing the money and building homes? Why are we not taking control back and doing this ourselves, that’s the BEXIT mantra?
I am calling for a revolution, for every single person who privately rents who would love to be able to decorate it the way they want, to put up shelves, to never have to worry about eviction, to pay half the amount they currently do, rise up and make some noise!
I want all the people who have ambitions to own their own homes, who can’t save the money for a deposit, rise up and make some noise!
Solving the housing crisis will not solve the social mobility issue on its own but it will go a long way, it doesn’t matter how much ambition you have it you simply cannot move to where the jobs are because there are no affordable rentals then you are at a disadvantage.
Rise up and make some noise!
[1] Other middle-class supermarkets are available.
[2] https://www.gov.uk/government/news/uk-house-price-index-hpi-for-june-2017
[3] That honour went to Tim Visser in the match on 3rd December 2017, come on the Mighty Quins!