Recent research done by the Joesph Rowntree Foundation (JRF) found that the poverty rate for pensioners in the UK is now at a record low. Yet, young adults are still living in poverty and struggling to find work.
While the UK’s employment rate is at an all-time high, the region’s income is the lowest ever reported in ten years.
Exactly two-thirds of unemployed British were earning below the Living Wage last year.
The self-employed are currently earning 13 % less than what they made five years ago. Also, full-time male workers in particular are compensated £12.90 an hour—£1 less than what they were making a year before.
Young people suffer the most
However, those who are affected by the economy’s financial setbacks are the younger generation.
Most of Britain’s youth are subjected to part-time work, low paid self-employment, and zero hour contracts. They also experience a lack of career prospects due to their circumstances.
Unfortunately, those who have transitioned from unemployment to employment usually only find low-wage work.
This has all led up to the impoverished state of most young workers.
The government has tried to combat the nation’s poverty issue through focusing on efforts related to welfare reform, and one of these involves the housing industry.
Many of these low-income workers do not have an established roof over their head.
Proposed solution to poverty
JRF’s proposed solution to this issue is for the government to, “tackle the root causes of poverty, such as low pay and the high cost of essentials. This research in particular demonstrates that affordable housing has to be part of the answer to tackling poverty: all main political parties need to focus now on providing more decent, affordable homes for people on low incomes."
Housing recovery has been a topic of discussion when it comes to providing affordable and secure homes to people who live in low-income household.
The study found that the repossession of private rented sectors are high in numbers, and because of this, it’s preventing younger workers from finding decent rental homes.
Despite all the effort being made, JRF researchers feel that living conditions are changing drastically for the younger generation, especially since low paying jobs and flaws in the housing market play a major role in their struggle.
Living standards for young people are getting worse
Without progression in housing and employment opportunities, economists predict that living standards for young people will continue to decline.
At this point, there may be little to no hope as far as lifting younger British workers out of poverty.
“We are concerned that the economic recovery we face will still have so many people living in poverty,” said JRF Chief Executive Julia Unwin. “It is a risk, waste and cost we cannot afford: we will never reach our full economic potential with so many people struggling to make ends meet."
Ultimately, the government’s long-term economic goals involve helping more people obtain jobs and cutting the nation’s deficit by more than a third.