Adam Smith Institute

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Bah, Humbug, accurate yet untrue poverty numbers

It’s that time of year for us to be grinchy, to play Scrooge, again. We agree that these numbers are accurate:

As of last month, more than 16 million people are living in poverty, or a staggering 24% of the UK population – the highest since records began. Over 9 million of these are in deep poverty, meaning they’re struggling to afford enough food or pay energy bills.

We also insist that while these are accurate they’re wrong.

The problem is with the definition being used. For we are not measuring poverty here but inequality. Poverty, in this sense, is mis-defined as living in a household on less than 60% of median household income (to taste, before or after housing costs). This is not a measure of poverty, it’s one of inequality.

It’s entirely possible to worry about inequality; we don’t, not very much at least. But we do insist that the information handed out needs to be usefully correct so that all can make usefully corrective decisions. Which is why we’ve that measure of inequality being used as one of poverty. Because those who want to worry about inequality have a measure to hoodwink us with.

As an example:

I’m ambassador for the Hygiene Bank and I know its Shower People With Kindness campaign – which aims to get shampoo and deodorant to people in poverty this Christmas – will be a lifeline for many.

That’s an awful lot of effort for something we’d suspect is not in fact a problem. Upon checking, half a litre of shampoo is 79 pence. In different flavours even. Four bars of soap are £1.35. Say, 10 minutes of minimum wage work per - well, per what? week, fortnight, month? - to supply those basic hygiene needs. Even if there were those unable to purchase them it’ll clearly be vastly cheaper overall to give people £2 and send them to one of the vast barns that litter the country - some call them shops - to buy their own. They’d even be able to choose their preferred flavour. We also don’t believe, not for a moment, that 24% of the population, a quarter, cannot afford £2.

We wholly and entirely agree that there are things that can be improved in the British economy. We’re also just chock full of empathy for those in need - post visitation Scrooges we are. But inequality being claimed as poverty is one of those problems to solve, not to be agreed with.

Tim Worstall