Hostname: page-component-848d4c4894-wg55d Total loading time: 0 Render date: 2024-04-30T19:22:46.113Z Has data issue: false hasContentIssue false
  • English
  • Français

Low Income Households: Casualties of the Boom, Casualties of the Bust?

Published online by Cambridge University Press:  06 December 2011

Grahame Whitfield  and
Chris Dearden
Grahame Whitfield
Affiliation:
At the time the research was conducted: Centre for Research in Social Policy, Loughborough University. At the time of publication: Joseph Rowntree Foundation – this article is written in a personal capacity E-mail: grahame.whitfield@talktalk.net
Chris Dearden
Affiliation:
Formerly Centre for Research in Social Policy, Loughborough University
Get access Rights & Permissions [Opens in a new window]

Abstract

This article reflects on research undertaken with low income households over a 12 month period following the ‘credit crunch’, a period characterised by rapid change to the financial landscape in the UK. It argues that people living on persistent low incomes were casualties of the economic ‘boom’ as they did not benefit from economic growth and of the ‘bust’ in that they most keenly felt the impact of the recession and the reaction of financial institutions to the new financial landscape. It concludes by arguing that, reflecting on the complexity of people's lives, addressing indebtedness requires a multi-faceted approach.

Keywords

Povertydebtcreditover-indebtednessunemployment
Type
Themed Section on Household Finances under Pressure: What is the Role of Social Policy?
Information
Social Policy and Society , Volume 11 , Issue 1 , January 2012 , pp. 81 - 91
Copyright
Copyright © Cambridge University Press 2011

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Credit Action (2011) Debt Facts and Figures, http://www.creditaction.org.uk/helpful-resources/debt-statistics.html [accessed 08.02.2011].Google Scholar
Davis, A., Hirsch, D. and Smith, N. (2010) A Minimum Income Standard for the UK in 2010, York: Joseph Rowntree Foundation, http://www.jrf.org.uk/publications/minimum-income-standard-2010.Google Scholar
Department for Children Schools and Families (DCSF) (2010) ‘Children to learn about money matters like saving, mortgages and the financial market’, Press release, 3 January 2011, http://www.dcsf.gov.uk/pns/DisplayPN.cgi?pn_id=2010_0005 [accessed 08.02.2011].Google Scholar
Dearden, C., Goode, J., Whitfield, G. and Cox, L. (2010) Credit and Debt in Low-Income Families, York: Joseph Rowntree Foundation, http://www.jrf.org.uk/publications/credit-debt-low-incomes-families.Google Scholar
Department of Trade and Industry (DTI) (2005) Over-indebtedness in Britain: A DTI Report on the MORI Financial Services Survey 2004, Department of Trade and Industry, http://webarchive.nationalarchives.gov.uk/tna/±/http://www.dti.gov.uk/files/file18550.pdf/ [accessed 08.02.2011].Google Scholar
Department of Trade and Industry/Department for Work and Pensions (DTI/DWP) (2004) Action Plan 2004: Tackling Over-Indebtedness, http://webarchive.nationalarchives.gov.uk/±/berr.gov.uk/whatwedo/consumers/consumer-finance/over-indebtedness/index.html [accessed 08.02.2011].Google Scholar
DirectGov (2011) ‘Saving gateway and who qualities’ [archived content], http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/SavingsAndInvestments/DG_10010450) [accessed 08.02.2011].Google Scholar
Finance and Leasing Association (FLA) (2011) ‘FLA figures show retail credit market continues to contract’, Press notice: http://www.fla.org.uk/media/201210_consumer_oct [accessed 16.06.2011] – for further ongoing figures and FLA comment, see also http://www.fla.org.uk/media/250111_consumer_november, http://www.fla.org.uk/media/240211_consumer_dec and http://www.fla.org.uk/media/230511_consumer_marchGoogle Scholar
Financial Services Authority/Her Majesty's Treasury (FSA/HMT) (2009) Money Guidance Pathfinder – Background and History, http://www.fsa.gov.uk/financial_capability/pdfs/money_pathfinder.pdf [accessed 08.02.2011].Google Scholar
Treasury, HM (2004) Skills in the Global Economy, http://webarchive.nationalarchives.gov.uk/±/http://www.hm-treasury.gov.uk/independent_reviews/leitch_review/review_leitch_index.cfm [accessed 08.02.2011].Google Scholar
Treasury, HM (2010) 2010 Budget Statement, http://www.hm-treasury.gov.uk/2010_june_budget.htm [accessed 08.02 2011].Google Scholar
Hoban, M. (2011) Treasury Written Answers and Statements, 19 January 2011, http://www.theyworkforyou.com/wrans/?id=2011-01-19a.34671.h&s=Financial±Inclusion±Fund [accessed 08.02 2011].Google Scholar
Kellard, K., Walker, R., Ashworth, K., Howard, M. and Liu, W. (2001) Staying in Work: Thinking About a New Policy Agenda, Research Report 264, London: Department for Education and Employment.Google Scholar
Kellard, K. (2002) ‘Job retention and advancement in the UK: a developing agenda’, Benefits, 10, 2, 93–8.Google Scholar
Kempson, E., McKay, S. and Willitts, M. (2004) Characteristics of Families in Debt and the Nature of Indebtedness, DWP Research Report 211, London: Department for Work and Pensions.Google Scholar
Magadi, M. and Middleton, S. (2005) Britain's Poorest Children Revisited: Evidence from the BHPS (1994–2002), CRSP Research Report 3, Loughborough: Save the Children, CRSP, Loughborough University, www.crsp.ac.uk/downloads/research_reports/bpc_research_report_3.pdf [accessed 08.02.2011].Google Scholar
Malenfant, R., LaRue, A. and Vezina, M. (2007) ‘Intermittent work and well-being: one foot in the door, one foot out’, Current Sociology, 55, 6, 814–35.CrossRefGoogle Scholar
Mansour, J. (2005) Skills and Sustainable Welfare-to-Work, London: WorkDirections.Google Scholar
McKay, S. (2005) ‘Debt: envy, penury or necessity?’, in Stewart, I. and Vaitilingam, R. (eds.), Seven Deadly Sins: A New Look at Society Through an Old Lens, Bristol: ESRC.Google Scholar
National Audit Office (2010) ‘Maintaining the financial stability of UK banks: update on the support schemes’, report by the Comptroller and AuditorGeneral, HC 676 Session 2010–2011 (updated January 2011), http://www.nao.org.uk/idoc.ashx?docId=21bf2867-9b7b-4b24-baaa-64b314eb5198&version=-1 [accessed 08.02.2011].Google Scholar
National Statistics (2011) ‘Inflation figures’, http://www.statistics.gov.uk/cci/nugget.asp?id=19 [accessed 16.06. 2011].Google Scholar
Nolan, P. (2004) ‘The changing world of work’, Journal of Health Services Research and Policy, 9, 1, 3–9.CrossRefGoogle ScholarPubMed
Office for Budget Responsibility (2010) Budget Forecast, http://budgetresponsibility.independent.gov.uk/d/junebudget_annexc.pdf [accessed 08.02.2010].Google Scholar
Robinson, P. (2005) ‘The economy: achieving full employment’, in Pearce, N. and Paxton, W. (eds.), Social Justice: Building a Fairer Britain, London: Politico, pp. 333–54.Google Scholar
Shelter (2010) ‘1 million paying for homes by card’, http://england.shelter.org.uk/news/january_2010/1m_paying_for_homes_by_creditcard [accessed 16.09.2011].Google Scholar
Smith, N. and Middleton, S. (2007) A Review of Poverty Dynamics Research in the UK, York: Joseph Rowntree Foundation.Google Scholar
The Royal Bank of Scotland Group (RBS) (2008) MoneySense Report Year 2, http://rbsoilandgas.com/downloads/pdf/about_rbs/moneysense_report_2008.pdf [accessed 08.02. 2011].Google Scholar
Tudela, M. and Young, G. (2003) ‘The distribution of unsecured debt in the United Kingdom: survey evidence’, Bank of England Quarterly Bulletin, winter 2003, pp. 417–27.Google Scholar