A third source to boost living standards: the family

Policymakers should seek to mitigate the barriers to the giving and receiving of financial and practical support between family members.

Alongside tackling the deficit, the government‘s priority is now tackling another major economic problem: the rising cost of living, caused by a mix of stagnant wages, a real terms reduction in benefits, and inflation. But with public spending constrained and economic growth still fragile, policymakers need to think creatively about solutions beyond the traditional reliance on the state or the market to help struggling families.

A recent report by the Child Poverty Action Group and Joseph Rowntree Foundation demonstrates the scale of the problem for families on modest incomes: over the past year the average cost of raising children has risen by 4% for those also paying for childcare. 

To boost family incomes, policymakers tend to fixate on two levers: the state or the market. Either government, through increased cash transfers or reduced taxation, or businesses, through increased wages, are called upon to do more. Under the last Labour government, cash transfers from the state to low-income families increased substantially with some notable successes, such as the reduction in the number of children living in poverty. The coalition government has prioritised reducing income tax. Recent emphasis has shifted to the role employers can play in boosting income: there is campaigning from across the main political parties to increase the minimum wage and spread the voluntary living wage to more employers.

The state and market should do more to help alleviate poverty. But the current economic conditions limit their reach. So it is also worth exploring how a third major resource can help improve family incomes: a person’s wider family.

Already, a significant minority of households receive regular financial support from their wider family, predominantly their parents. It is estimated that about 1 in 6 households regularly receive financial help from their parents with the average received in one year about £1,400. The national annual flow of such transfers is estimated to be about £1.2bn. But this undervalues the scale of transfers taking place: it misses out those who receive money through inheritance, which is estimated to be about £30bn a year.

Forthcoming research from the Social Market Foundation found that many on the lowest incomes, especially those experiencing circumstantial poverty due to unemployment or divorce, receive significant financial support from their parents, often worth thousands of pounds. And in-kind support such as the provision of childcare and shopping is also common and saves households significant amounts of money.

The family, then, is often a major but hidden form of welfare. Its impact can be quite remarkable. There can be a considerable improvement in living standards of low income families who receive support from parents: they are better able to work or train, and afford a wider range of goods from children’s clothes to holidays.

Policymakers should seek how to mitigate some of the barriers to the giving and receiving of financial and practical support between family members. Obviously, the lack of familial exchange may be explained by geographical or emotional distance between relatives. But there are other barriers such as money and time: for example, especially with cultural and governmental expectations to work for longer in older age, grandparents will have less time in the week to provide support.

Employment for older people could be more flexible. Since the late 1980s, DIY retailer B&Q has encouraged older workers, with a quarter of its workforce now over the age of 50, by ensuring flexible working – including for caring responsibilities – is part of the company culture. Maybe this could be nudged along by making parental leave, especially parents’ unpaid entitlement, transferable to grandparents if unused?

To tackle the financial constraints some families face, maybe tax efficient, high-interest multigenerational family trusts could be established to encourage low-income families to build up a pot of money to help different generations in testing times?

This year’s Budget – with announcements to help families with childcare, petrol and housing costs – showed that the government is focussing on measures to boost living standards for those on modest incomes. But policymakers will need to think creatively and draw on multiple sources: the state and the market, yes, but also the family.   

About 1 in 6 households regularly receive financial help from their parents with the average received in one year about £1,400. Photograph: Getty Images.

Ryan Shorthouse is the Director of Bright Blue, a think tank for liberal conservativism 

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How Devon's humpback whale is dredging up the politics of the sea

The arrival of a humpback whale at Slapton Sands has caused a local splash. But the history of the village has a warning for those who think of the sea as spectacle alone.

The Devon coast road from Dartmouth to Torcross is as pretty as it is treacherous. After winding through a cliff-top village, the road ahead falls away to reveal a giant lake – the Slapton Ley - flanked by green hills on one side and ocean on the other. 

Tourists (or "grockles") gasp at the view and, in recent weeks, even locals have been staring out to sea - where a giant humpback whale has taken up residence in the bay.

Not seen at Slapton in living memory, the whale has swum into rural stardom. Hundreds have lined the beach with cameras and telescopes. The nearby pub and farm shop have seen levels of trade only usually enjoyed in the summer.

According to Keith Pugh, (the ice-cream-van-man who has been keeping the crowds supplied with tea) one lady from Plymouth caught the bus here every day for six weeks just to catch a single glimpse. That’s a four-hour round trip.

If this all sounds a bit fishy, that's because it is. Experts believe that the whale is feeding on the bumper numbers of small fish and mackerel that have been reported in the area. But even these are behaving in unexpected ways. “The mackerel are further north than usual for this time of year,” says Mark Darlaston, a photographer who first identified the whale as a humpback (and jokingly named it after storm “Doris”).

So what is the humpback up to, so far south of its northern feeding grounds? And should its presence be seen as a sign of recovery - for whales and UK waters in general? 

Not yet, say conservationists. And not if the history of Slapton is anything to go by.

Troubled waters

Villagers at Torcross, at the far end of Slapton sands, are familiar with secrets from the deep. In 1944, a military training in the bay went horribly wrong, when nearly 1,000 American servicemen were drowned. The tragedy was hushed up for decades.

But the greatest threat to the community comes from mismanagement of the sea itself. On 26 January 1917 the entire neighbouring village of Hallsands was swallowed by a storm. The tragedy was partially manmade. The underwater sandbanks, which had helped protect the shore from longshore drift, had been thoughtlessly dredged to supply building materials for the Plymouth docks. Some 660,000 tonnes of material were removed and never replaced.

The results of that plunder are still felt at Slapton today. In 2014, a gale-force storm swept away part of the road that runs between the sea and the ley. Just last year, the seawall at Torcross crumbled, as the protective beach beneath was carried away by waves.

Into the Brexit deeps

So much in our oceans is tightly connected to human activity. If whales are a rare sight on the UK coast, it is partly because of the human campaign against them for many years in the form of whaling. According to Sally Hamilton from the conservation charity Orca, the 1980s moratorium on whaling has helped some populations to recover. 

But others are still fighting to survive in the face of pollution, noise, and over-fishing. The UK’s last resident pod of killer whales looks likely to die out after high levels of PCB chemicals have stopped the females reproducing. In Norway, a stranded whale was found to have over 30 plastic bags blocking its digestive system.

There is also no certainty that the glut of fish that the whale is feeding on will come again next year. “There is still masses we don’t understand about the ocean,” says Will McCallum from Greenpeace, “Climate change and the threat of over-fishing mean that where fish are moving to is more unpredictable that it has ever been.”

And it's not just whales that could get caught out. Some UK politicians have demanded that a Brexit deal include blocking foreign vessels from fishing in British waters. With 58 per cent of UK-caught fish caught by non-British fleets, it is argued that a ban would benefit the UK industry.

Yet with migration patterns becoming more erratic, McCallum is sceptical. "Re-territorialising our waters would be an absolute potential disaster because we just don’t know where fish stocks are going to move," he says. 

Out of the Blues

At Torcross, the sea has long been a source of worry. Claire, the landlady at the Start Bay Inn, recalls the many storms that have pelted the seafront pub since she was a child. Just last year she was “running from one end to the other” trying to sweep the water out, while bottles rattled and the chip-fryer shook.

So it was perhaps unsurprising that news of the whale’s arrival first met with local concern. “I can’t bear to see it,” one woman tells me. She had read in the press that it had come so close in to shore to “beach” itself and die, and heard rumours it was in mourning for a lost calf.

But thanks to the investigations of Mark Darlaston and the divers at the British Divers Marine Life Rescue, such fake whale-news has been corrected - and its visits are fast becoming a source of wider hope. The owner of the Stokely farmshop has joked about replacing it with a decoy “nessie” when it leaves. Claire cannot wait to put its picture on the front of her menus (where the picture is currently of the recent storm).

It is not yet known what lies ahead for Brexit fishing policy, or for whales. But dip into the history of the village of Torcross, and it's clear that understanding and protecting the sea is inseparable from protecting ourselves.

India Bourke is an environment writer and editorial assistant at the New Statesman.