You’ll Never Live Like Common People

I was homeless from 3 January 2009 to 27 April 2010, and I can tell you - poverty is another country. You have either lived there or you have not.

I get extremely annoyed at governments pontificating on how poor people can help themselves. “Tough Love” involves two concepts; moving from a place of understanding and compassion while setting realistic boundaries. It does not come from a cold hard place of judgement and superiority. Politicians appear to get off on “tough”, while ignoring the “love” aspect. Practically every sentence uttered on the subject betrays a total lack of understanding, based as it is on the assumption that all one needs to escape the poverty trap is a get-up-and-go attitude.

Contrast measures such as the 45p top rate of tax with the demise of tax credits, the capping of benefits with the refusal to cap grotesque bonuses, the imposition of a bedroom tax with the refusal to consider a mansion tax, and a pattern of medieval disconnect between the ruling class and the reality of peoples’ lives emerges.

I was homeless from 3 January 2009 to 27 April 2010. Through a combination of circumstances – a landlord not returning a deposit, a spell of illness, a bad break-up, a change of job – I ended up destitute. I couldn’t claim benefits, as I was working. I was turned down for help with housing as I lacked a “sufficient local connection”. I slept in a smelly sleeping bag in a rat-infested cupboard of the office in which I worked.

I had always espoused socialist sensibilities. I had always been sympathetic to those less fortunate than me. But the basic economic concept of Scarcity was academic construct rather than unforgiving reality. The fact is that I had never truly understood poverty until that January day. I thought it was having little in the fridge or raiding the jar for coppers at the end of the month or not being able to afford basic things for your home. Then I experienced having no fridge, no jar, no home, nothing.

The overwhelming shame and self-recrimination that went with my feelings of failure, meant that most of my friends were unaware of my situation. The few to whom I did reveal it, would invite me round to see me, but really to feed me. I would appear at their door without a bottle of wine; their birthday parties with no card. Soon we settled into a silently negotiated truce of avoiding each other.

Being poor is very expensive; it sucks you underwater and holds you there. Working in central London means you have the non-choice of crippling travel costs or overpriced bedsits. Small local shops are more expensive than big drive-to supermarkets. Electricity and gas meters are dearer than direct debits. Payday loans attract interest a hundred times higher than personal bank loans. Six bad pairs of shoes that fall apart after a month cost twice as much as one good pair that will last for years.

During my homelessness, I showered at the public facilities in King’s Cross station at £3.50 (later rising to £5) a pop. I saved 20p coins all week and took my clothes to an expensive launderette on a Sunday. I estimate I spent around £2,000 on such basic hygiene during that time; much more than I needed for a deposit and first month’s rent. But I had no choice. I couldn’t afford for work to catch on. I woke up at six every morning, went out through a side alley, showered, shaved, dressed and came back pretending to “open up” for people waiting outside the building. Dissembling was my full time job; being ashamed my hobby.

I find nothing more disingenuous than rich MPs or celebrities experimenting on television to see whether they can live on a weekly amount of X or Y and conclude “gosh it’s very hard, but doable”. Such meaningless exercises ignore the cumulative effect of poverty; they never start from a position of empty food cupboards, looming debt, threadbare clothes and shoes with holes in them. They ignore the devastating financial effect that a visit to the dentist or a child’s birthday or one late charge can have. They also ignore the fundamental psychological difference of “I know this will be over in a week” as opposed to “this may never end; this may just get worse”.

Whenever the “poshboy” or “cabinet of millionaires” charge is levelled at the government, voices rise in defence; even intelligent voices: this is unfair, it’s class war, ad hominem, their background does not invalidate their views. They miss a fundamental point. An individual view on solutions to any particular problem is not invalidated by the bearer’s background. However, lack of understanding of the problem can render it ill-informed. It is not a war on accountants to say that they are not the best placed group to make medical decisions. If homogeneity of background means that a group collectively lacks experience in a particular matter, then it is perfectly reasonable to suggest that it is not the right caucus for solving the problem.

Talking of a difficult period in her life, a friend recently said: “Things wear out and you can’t afford to replace them. You wear out and there is nothing to replace.” Poverty is another country. It exists like an alternate reality in parallel with the rest of society. With time, humility and openness, empathy may develop. But let us not kid ourselves – an MP can visit poor estates from a position of comfortable plenty; all the visits in the world cannot replicate the experience of living in such hopelessness. He is merely a rich tourist on a depressing safari in a queer land.

The poor are no longer content to die romantically of tuberculosis, while the kindly rich visit to offer broth and advice on thrift. Their lives cannot continue to be reduced to Jane Austen novelettes. If the government is serious about solving the problem, they must be listened to and understood.

A still from Pulp's "Common People" video.

Greek-born, Alex Andreou has a background in law and economics. He runs the Sturdy Beggars Theatre Company and blogs here You can find him on twitter @sturdyalex

Photo: Getty Images
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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR