The missing dimension of poverty: stigma

The experience of the social stigma around poverty is real, measurable and crucial.

The government’s consultation on developing a new measure of child poverty closes today. Their argument for moving away from the existing (mainly) income-based measure is that poverty is a “multi-dimensional” concept. Few would disagree: the problems arise when people use the notion of “multi-dimensionality” as cover for trying to import their pet concerns as “dimensions” into poverty measurement. The consultation document asks in all seriousness for views on such “dimensions” as drug addiction and family stability, which suggests that the methodology for identifying dimensions is to ask the staff at the Centre for Social Justice to free-associate on the words “child poverty”. (In fairness, it also asks about more reasonable candidates, such as levels of indebtedness.)

Yet in all the talk about the “multi-dimensional” nature of poverty there is one aspect which is never mentioned, even though it is a “dimension” of poverty in the truest sense, it is measurable, it concerns the lived experience of poverty as the government requires of poverty measures, and it is something that we all intuitively understand. This is the social stigma associated with poverty.

Stigma is the external, social counterpart to internal feelings of shame, worthlessness and moral inferiority. Shame is what individuals feel: stigma is the imposition by others of a shameful identity. And to be poor has, almost throughout human history, entailed a particular vulnerability to the imposition of shameful identities. Indeed Amartya Sen has argued that shame is at the “irreducible absolutist core” of the idea of poverty.

Would anyone seriously deny that stigma in this sense is absent from the experience of poverty in the UK today? These are the words an unemployed benefit claimant rattled off to describe how he felt claimants were perceived in a focus group last year: ‘OK, ermm...parasites, skivers, work-shy, lazy, stupid, feckless’.

These words are echoed in countless studies of the experience of poverty in the UK. Does anyone think that the exposure of parents to this sort of stigma has no effect on child wellbeing? (If you do, read this by Anna Hedge)

Mainstream research on poverty has often shied away from the issue of stigma. Indeed purging the idea of poverty of associations with shame and moral condemnation and replacing it with objective measures was an explicit aim of much of the best research of the 20th century, which in turn has influenced the definitions of poverty used by governments and international organisations. But recent research by Robert Walker and colleagues not only supports Sen’s argument that poverty is inextricably linked to shame across societies: it suggests that to ignore stigma is potentially to miss out on some of the most corrosive effects of poverty. http://softinnovators.com/spi/sites/default/files/WP1%20Cultural%20conce...

Their work shows that the stigma of poverty doesn’t just cause painful emotions to the individuals on the receiving end. It leads to social isolation as people try to avoid situations where they might be labelled. This can reinforce exclusion making it even harder to escape from poverty. And stigma undermines social cohesion. Not only does it encourage the majority to wash its hands of social problems by blaming individuals: a recurrent finding in research is that people in poverty themselves seek out others to stigmatise in order to differentiate themselves from imposed shameful identities. There was an excellent account of this happening among benefit claimants in this piece by Fern Brady earlier this week.

So social stigma is associated with poverty at deep level, and has potential negative consequences for the individuals who experience it and for social cohesion. At the same time, despite the fact that the association seems to be very widespread across cultures, we have no reason to believe that the level of stigma is invariant, either between countries or over time, or that it is immune to public policy interventions. Indeed reducing stigma has long been an explicit goal of much social security policy, including Beveridge’s 1942 plan. Often, the motivation for this has been instrumental: to increase take-up of benefits. But it is also arguable that the stigma of poverty is a social evil that should be addressed in its own right, along with and as an integral part of any strategy to reduce poverty.

So my suggestion is that if government is serious about addressing poverty in all its dimensions, it should start measuring the level of poverty stigma (it should not, however, try to combine measures in a single index, for the reasons set out by the IFS). How this should best be done raises all sorts of issues, but it is not a question of starting completely from scratch. Previous research has shown that stigma can be measured through direct attitudinal research, or by looking at the prevalence of erroneous negative beliefs about people in poverty – by way of example, the fact that the public believes more than one in four benefit claims are fraudulent when the true figure is less than one in thirty. No doubt many other approaches are possible.

Measuring stigma levels would also, it is to be hoped, impose some discipline on ministers and politicians of all parties who, consciously or otherwise, make use of stigma as a rhetorical device in argument or in the presentation of policy. Examples have abounded over recent years (not just under the coalition)- indeed it is arguable that the consultation document on measuring child poverty, with its stress on drug and alcohol dependency, is an example. When Ben Baumberg Kate Bell and I researched benefit stigma last year for the charity Turn2Us, we came to the conclusion that the level of benefits stigma cannot be divorced from the statements of politicians and the way they are picked up in the media. That may be true of poverty stigma as well. If so, a government committed to a multi-dimensional approach to poverty would benefit from a measure that would indicate whether things were getting worse or better on this crucial dimension- and encourage it to ask about its own role in any worsening or improvement.

Photograph: Getty Images

Declan Gaffney is a policy consultant specialising in social security, labour markets and equality. He blogs at l'Art Social

Getty
Show Hide image

I was wrong about Help to Buy - but I'm still glad it's gone

As a mortgage journalist in 2013, I was deeply sceptical of the guarantee scheme. 

If you just read the headlines about Help to Buy, you could be under the impression that Theresa May has just axed an important scheme for first-time buyers. If you're on the left, you might conclude that she is on a mission to make life worse for ordinary working people. If you just enjoy blue-on-blue action, it's a swipe at the Chancellor she sacked, George Osborne.

Except it's none of those things. Help to Buy mortgage guarantee scheme is a policy that actually worked pretty well - despite the concerns of financial journalists including me - and has served its purpose.

When Osborne first announced Help to Buy in 2013, it was controversial. Mortgage journalists, such as I was at the time, were still mopping up news from the financial crisis. We were still writing up reports about the toxic loan books that had brought the banks crashing down. The idea of the Government promising to bail out mortgage borrowers seemed the height of recklessness.

But the Government always intended Help to Buy mortgage guarantee to act as a stimulus, not a long-term solution. From the beginning, it had an end date - 31 December 2016. The idea was to encourage big banks to start lending again.

So far, the record of Help to Buy has been pretty good. A first-time buyer in 2013 with a 5 per cent deposit had 56 mortgage products to choose from - not much when you consider some of those products would have been ridiculously expensive or would come with many strings attached. By 2016, according to Moneyfacts, first-time buyers had 271 products to choose from, nearly a five-fold increase

Over the same period, financial regulators have introduced much tougher mortgage affordability rules. First-time buyers can be expected to be interrogated about their income, their little luxuries and how they would cope if interest rates rose (contrary to our expectations in 2013, the Bank of England base rate has actually fallen). 

A criticism that still rings true, however, is that the mortgage guarantee scheme only helps boost demand for properties, while doing nothing about the lack of housing supply. Unlike its sister scheme, the Help to Buy equity loan scheme, there is no incentive for property companies to build more homes. According to FullFact, there were just 112,000 homes being built in England and Wales in 2010. By 2015, that had increased, but only to a mere 149,000.

This lack of supply helps to prop up house prices - one of the factors making it so difficult to get on the housing ladder in the first place. In July, the average house price in England was £233,000. This means a first-time buyer with a 5 per cent deposit of £11,650 would still need to be earning nearly £50,000 to meet most mortgage affordability criteria. In other words, the Help to Buy mortgage guarantee is targeted squarely at the middle class.

The Government plans to maintain the Help to Buy equity loan scheme, which is restricted to new builds, and the Help to Buy ISA, which rewards savers at a time of low interest rates. As for Help to Buy mortgage guarantee, the scheme may be dead, but so long as high street banks are offering 95 per cent mortgages, its effects are still with us.