ITEM 9 JRF Poverty in Scotland (2023)
North Lanarkshire Council · 22 November 2023
Back to Health and Social Care Integration Joint Board — 22 November 2023 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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1 REPORT Item No: 9 SUBJECT: JRF Poverty in Scotland (2023) Report TO: Integration Joint Board Lead Officer for Report: Ross McGuffie, Chief Officer North HSCP Author(s) of Report Alana McGlynn, Health Improvement Programme Manager Kerri Todd, Head of Health improvement Jo Duffy, Senior Health Improvement Officer DATE: 22 November 2023 1. PURPOSE OF REPORT This paper is coming to the IJB for: For approval ☐ For endorsement ☐ To note ☒ 2. ROUTE TO THE BOARD This paper has been: Prepared By: ☒ Reviewed By: ☐ Endorsed By: ☐ Alana McGlynn, Health Improvement Programme Manager Kerri Todd, Head of Health improvement
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2 3. RECOMMENDATIONS It is recommended that the IJB: (1) Review the main points of the JRF Poverty in Scotland (2023) report (2) Note the strategies and plans already in place across North Lanarkshire to tackle poverty (3) Discuss and consider any wider implications or areas for improvement 4. VARIATIONS TO DIRECTIONS? 5. BACKGROUND/SUMMARY OF KEY ISSUES Every year at the start of Challenge Poverty Week in October, the Joseph Rowntree Foundation (JRF) publish their ‘Poverty in Scotland’ report. This year’s report considers whether ‘work is working’ for the people of Scotland. The main findings are: Over one million people still live in poverty in Scotland, with nearly half of those (490,000) living in very deep poverty. The statutory child poverty reduction targets are unlikely to be met without significant additional Scottish Government action. While the Scottish Child Payment is likely to reduce child poverty, the growth of in-work poverty is holding back further progress. Just over 10% of workers in Scotland are locked in persistent low-pay, i.e. they are paid below the real Living Wage. Of this cohort, 72% are women. Five high-priority industries play a key role in maintaining in-work poverty: retail, hospitality, manufacturing, health and social work, and the administration and support services. The report details several recommendations for the Scottish and UK Governments and provides specific findings and recommendations for the high-priority industries to work with and support their employees to make ends meet. Yes ☐ No ☐ N/A ☒
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3 5.1 Families most likely to experience in-work poverty The report analyses which families are most likely to experience in-work poverty. The findings are consistent with who experiences low pay, fewer hours and barriers to working in the first place. One in four people in working single-parent families are in poverty – around 10 percentage points higher than the average poverty rate for families where someone works. Larger families, that is, families with three or more children, also face an in-work poverty rate of around one in four. And while couples with children face a lower risk of in-work poverty, they still make up around half of the families experiencing in-work poverty, with more than 1 in 10 people experiencing in-work poverty that live in couple families with children having both parents in full-time work. This is further proof of the perverse situation where having children is a consistent risk factor of being in poverty in Scotland. People from a minority ethnic background also experience a rate of in-work poverty that is three times that of the rate of white workers. Workers in minority ethnic families where everyone works full-time are also nearly twice as likely to experience in-work poverty than white workers. Finally, households where someone is disabled and/or someone is a carer also face an increased risk of in-work poverty. For some families this will be due to the disabled person either being unable to work or having been excluded from the workforce by inaccessible employment. For example, a family where someone is disabled is half as likely as a family where no one is disabled to have everyone in full-time work. These groups of people are also most likely to not be in work at all. 5.2 Industries where in-work poverty is most prevalent JRF analysed which industries had the largest number of people working in them whose families were experiencing in-work poverty. This identified five ‘high-priority industries’. They called them this because of their centrality to our economy but also because things have to change. Nearly three-quarters of people experiencing in-work poverty have someone in their family who works in hospitality, health and social work, retail, administrative support and/or manufacturing. Linked to that, 80% of people locked in low pay work in one of these industries. The reasons are complex but include low pay, insecurity of contracts, higher proportion of female workers in some industries, under-employment, caring responsibilities and part time working. 5.3 Household costs The report also highlights that homeowners are facing a difficult time with increased mortgage rates.
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4 Families are doing all they can to cut back on costs. Participants in focus groups said that they had shared meal preparation with other households, had unplugged electric devices, gone without heating for hours, worn extra clothes to stay warm and moved furniture to heat less of their house. In spring 2023, of families experiencing in-work poverty: More than 8 in 10 (83%) had cut back on an essential. Nearly 6 in 10 (59%) had heated their home less than needed. And one in four had skipped or reduced the size of their meal and not heated their home as much as needed. 5.4 Solutions and recommendations for employers For businesses, the solution is in this respect simple. It is to consult and listen to their employees. As JRF highlight in their report, in-work poverty does not have a single solution, and it is highly individualised. As a result, the relationship between employees and their line managers and those who run businesses is key. Where employee voice is heard, employees do better. Businesses also need to have a serious look at how their employment practices and policies are affecting women. You are far more likely to be on low pay if you are a woman. You are more likely to be part-time. You are likely to get paid less than men. You are less likely to progress in your role. You are more likely to undertake unpaid work. In light of these litanies of unfairness, greater regulation is required, but businesses do not need to wait for government to catch up with these gross inequities. Businesses also need to work on: Pay: Payment of the real Living Wage should be a goal of all employers. Committing to higher cost of living pay increases and where possible one-off bonus payments, or direct help with key costs, to help with the cost of living. Playing a role in increasing employees’ income by being proactive and encouraging employees to ensure they are in receipt of all benefits available to them. Adopting enhanced maternity pay and also work to increase take-up, and adequacy, of paternity pay for low-paid men. Progression: Target training and progression opportunities at employees on lower pay. Reduce costs and barriers to training for staff – ensure barriers are not put in place for low-paid employees. Understand when progression might not be appealing. This is partly about marginal increases in pay for disproportionate levels of work and responsibility. For example, if management positions move from hourly pay to salaried, yet there is a culture of managers continually working beyond their contracted
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5 hours. Additionally, the interaction with Universal Credit should also be considered by employers. When presenting opportunities for increased pay, employers should understand taper rates. Flexibility as a tool and not an end in itself. Employers should try to create flexible roles within organisations that are targeted at offering more progression opportunities. Hours and Employment Security: Employers should aim to become Living Hours accredited. Employees should be offered contracts that reflect their hours of work. Give employees minimum of four weeks’ notice for shifts. Pay staff in full for any changes or cancellations in shifts. 5.5 Solutions and recommendations for Scottish Government: Operationalise Fair Work (move on from discussion). Prioritise progression. Progression should have equal status with participation when it comes to employment support strategy and services that are designed with people with lived experience of in-work poverty. Redesign and enhance employment support offer. The ambitions outlined in the most recent Scottish Government Tackling Child Poverty Delivery Plan are inadequate in comparison to the scale of change needed. Improve childcare. The lack of availability and flexibility is a barrier to work. Create an independent agency that deals with racism in the workplace 5.6 Solutions and recommendations for UK Government: A real Living Wage for all workers aged 18 and up should replace the National Minimum Wage and National Living Wage. A new wage floor calculation tied to what people need to lead a dignified life should be the statutory minimum. Create a new Statutory Carer Pay entitlement, which mirrors statutory maternity pay and provides earnings-related financial support for carers with high-intensity caring demands for up to nine months. Increase Statutory Maternity Pay (SMP). A first step to increasing SMP would be to have it replicate enhanced maternity pay, a policy which is already well known with employers. Increase Statutory Paternity Pay. JRF support the proposal put forth by Pregnant Then Screwed and the Centre for Progressive Policy that Statutory Paternity Pay is increased to a minimum of six weeks, during which employees would be paid 90% of their salary, aligning with the existing SMP. Make flexible working the default from day one of employment, and reconsider the business exemptions for refusing a request, so jobs work around caring responsibilities and health needs; this would shift the onus onto employers to think about what flexibility they can offer.
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6 6. CONCLUSIONS It is clear from the report that the situation facing many employees and their families is becoming increasingly difficult and JRF have been clear that more needs to be done to improve the situation. JRF have made a call for action to all employers, Scottish Government and the UK Government highlighting that all agencies must do whatever is in their powers to support those most likely to experience in-work poverty. The authors report it’s unlikely that Scotland will meet its child poverty targets without urgent action. There is also an implication for recruiting and retaining skilled staff who may look elsewhere for more flexible roles where staff are better supported around cost of living issues. Transport is a key theme that has come up throughout the report. 7. IMPLICATIONS The current and future implications for the workforce, who are also our community have been outlined above. All agencies must work together to maximise the opportunities they have within their control. It is well established that people who are experiencing poverty can have poorer health and wellbeing outcomes and experience greater inequalities. By tackling in- work poverty and other social determinants of health, inequalities can be reduced and health and wellbeing outcomes improved. North Lanarkshire has a comprehensive Tackling Poverty Strategy that has recently been updated for the next three years. The strategy recognises the relationship with child poverty and therefore includes specific actions to deliver the national targets. There is also a strong Local Employability Partnership in North Lanarkshire with good representation from partners. North Lanarkshire Council is progressing community wealth building principles through the Plan for North Lanarkshire and NHS Lanarkshire has developed an anchor plan (incorporating cost of living actions) which also prioritises those who are more vulnerable to in-work poverty. However, this report is a stark reminder to ensure we continue to prioritise this work across all services as all can contribute to the collective effort to reduce poverty and it is not the remit of specialist teams. It is also worth remembering that a number of HSCP employees will be affected by these issues and efforts should feature in staff health and wellbeing plans. 7.1 NATIONAL OUTCOMES Link(s) to National Health and Wellbeing Outcomes
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7 People are able to look after and improve their own health and wellbeing and live in good health for longer ☒ People, including those with disabilities or long-term conditions, or who are frail, are able to live, as far as reasonable practicable, independently and at home or in a homely setting in their community ☒ People who use Health and Social Care Services have positive experiences of those services, and have dignity respected ☒ Health and Social Care Services are centred on helping to maintain or improve the quality of life of people who use those services ☒ Health and Social Care Services contribute to reducing health inequalities ☒ People who use Health and Social Care Services are safe from harm ☒ People who work in Health and Social Care Services feel engaged with the work they do and are supported to continuously improve the information, support, care and treatment they provide ☒ Resources are used effectively and efficiently in the provision of Health and Social Care Services ☒ 7.2 ASSOCIATED MEASURE(S) There are a variety of plans in North Lanarkshire which aim to reduce poverty, each of which has its associated measurement and monitoring plan. Key documents include: NLC Tackling Poverty Strategy Child Poverty Action report NHS Lanarkshire anchor organisation action plan (includes cost of living actions) 7.3 FINANCIAL This paper has been reviewed by Finance: 7.4 RISK ASSESSMENT/RISK MANAGEMENT Relevant Risk Register Details Current Risk Level Risk Owner Choose an item. Yes ☐ No ☐ N/A ☒
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8 7.5 ENGAGEMENT & PARTICPATION Please tick the engagement and participation objectives that link(s) with this piece of work and provide further details regarding the engagement and participation that was undertaken. Objectives Further Details ☒ Involve stakeholders in the development work aimed at achieving the national outcomes JRF involved stakeholders in the development of the report. ☐ Provide stakeholders with information on how to get involved ☐ Ensure a diverse range of engagement and participation and opportunities are in place to suit different needs ☐ Measure how well we involve community stakeholders in the planning, design and delivery of our services ☐ Provide regular feedback on how stakeholder engagement and participation is shaping and influencing service development and delivery ☐ Provide support to enable stakeholder representatives to participate meaningfully and confidently at meetings ☐ Develop participation guidelines to ensure a common understanding and set of expectations for both stakeholders and partnership staff ☐ Support engagement planning and participation in localities, taking account of other engagement activity and local plans across the Community Planning Partnership 7.6 INEQUALITIES & FAIRER SCOTLAND DUTY EQIA Completed & Fairer Scotland Impact Assessment Form Completed and attached to report: Yes ☐ No ☐ N/A ☒
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9 EQIA added to website: 8. BACKGROUND PAPERS JRF Poverty in Scotland (2023) Report https://www.jrf.org.uk/report/poverty- scotland-2023 North Lanarkshire Tackling Poverty Strategy 2023-26 TOWARDS A FAIRER NORTH LANARKSHIRE 9. APPENDICES Please include a glossary of terms if not already included. CHIEF ACCOUNTABLE OFFICER (or Depute) Ross McGuffie Members seeking further information about any aspect of this report, please contact the following; Kerri Todd, Head of Health Improvement; kerri.todd@lanarkshire.scot.nhs.uk Yes / Date added ☐ No ☐ N/A ☒
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10 Direction from North Lanarkshire Integration Joint Board (IJB) 1 Reference Number 2 Report Title 3 Date direction issued by IJB 4 Date from which direction takes effect 5 Direction to: 6 Does this direction supersede, revise or revoke a previous direction – if yes, include reference number(s) 7 Functions covered by direction 8 Full text of direction 9 Budget allocated by Integration Joint Board to carry out direction 10 Performance Management / Governance arrangements 11 Date direction will be reviewed