The government's 'Levelling Up' agenda is failing Greater Manchester, a new study says. The Greater Manchester Poverty Action's (GMPA) 'Poverty Monitor' has collected troubling data which shows high levels of poverty in different areas of the city-region, which are likely to get worse.
With the deepening cost of living crisis hitting families pockets' hard as inflation continues to soar and energy bills look set to rise again, more families and children are being pushed into poverty, the monitor says. The research outlines that more than one in four children are living in poverty across the region, with the number of foodbanks and other low income support providers meeting people's basic food needs doubling over the last five years. This is data is from key areas including child poverty, health, fuel and food insecurity, and education.
Fuel poverty is crippling 15 per cent of homes across the region with nearly 200,000 people earning less than the 'Real Living Wage' of £9.90 per hour. And far from 'Levelling Up', Greater Manchester is actually falling behind in a number of areas, according to the report.
The research comes as energy executives confirmed that the energy price cap will once again be rising in October amid an already soaring cost of living crisis. Ofgem chief executive Jonothan Brearley has told the Business, Energy and Industrial Strategy Committee that the regulator is expecting an energy price cap "in the region of £2,800". He noted how conditions have worsened in the global gas market.
Women in the city-region have a life expectancy six years lower than those in the wealthiest parts of the country, with men expected to live seven fewer years. Unemployment has also risen at a faster rate since 2019 in Greater Manchester compared to the national average.
Some boroughs are seeing child poverty rates above 30 per cent while nearly all boroughs have more than one in 10 households struggling with food insecurity. While in some wards, more than half of children are experiencing poverty. This includes Cheetham in Manchester with 51.2 per cent, Great Lever in Bolton with 57.2 per cent, and Coldhurst in Oldham at 64 per cent.
Manchester, Bolton, and Oldham also have the highest number of people claiming Universal Credit, according to the monitor, with the recent cut to the £20 uplift a significant factor in pushing more families into poverty. Many families have also recently had to start using food banks and other income support despite being in full-time work as the cost of living increases, contributing to more people in what is described as 'in-work poverty'.
The GMPA has gathered this data from a variety of sources, including the government and service user data from organisations operating in Greater Manchester, and was collected between January and May of this year, reflecting the growing cost of living crisis that has gripped the nation.
Only urgent action from central government can reverse the trend of more families being pushed into poverty, GMPA says. They are calling for the £20 Universal Credit uplift to be reinstated, an increase to all benefits and pensions in line with inflation, and the introduction of a national poverty strategy.
CEO of Greater Manchester Poverty Action, Graham Whitham, says: "At GMPA we work to prevent and reduce poverty by campaigning for a real living wage, advising local authorities and the combined authority on anti-poverty strategies and offering practical help to people through our money advice referral tool.
"Our vision is of a Greater Manchester free from poverty, and while we do all we can locally we are seeing more and more people, and children struggling. Our data shows we have a growing Greater Manchester and nationwide poverty emergency. We urgently need a national anti-poverty strategy to help people in poverty.
"Locally across Greater Manchester councils are making strides to provide advice and support to people in poverty but the main drivers lie with central government. Unless their efforts are backed up by national action from Westminster, then the current levelling up agenda will do little to help people struggling on low incomes in our city region.”
'There is no more time to waste'
Mayor of Greater Manchester, Andy Burnham, believes families in the city-region are facing the 'biggest pressure on their budgets for a generation' as the cost of living crisis continues. The data in the GMPA report highlights this for him.
Mr Burnham also raises the fact that residents in Greater Manchester were under harsh Covid restrictions for longer than much of the UK, with hard working families still feeling the affects of this. He agrees with the GMPA that the government must intervene to help families.
Mayor of Greater Manchester Andy Burnham told the Manchester Evening News : “Behind the cold, hard figures of this report are families in streets up and down Greater Manchester worrying about how they’ll put food on their kids’ plates, and calculating how much energy they can afford to use from day to day. Those families are facing the biggest pressures on their budgets for a generation, and the impact of the pandemic is still being felt by people here who were hit harder, for longer, than those in other parts of the country.
“Plenty of promises have been made about levelling up forgotten communities in the North, but every moment that goes by without action widens those divides even further. The Government must urgently step in to protect people from this crisis.
"That includes reversing the unfair cut to Universal Credit, and ensuring that from October, welfare payments and pensions don’t see a real-terms cut but increase in line with inflation. There is still time to act – but there is no more time to waste.”
'£364 million levelling up funding for projects across the region'
The Department for Levelling Up, Housing and Communities, has told the MEN that £364 million of levelling up funding is being spent on projects across the region. This includes £20 million for a 'state-of-the-art' vocational college in Bolton and more than £23 million for an advanced manufacturing site in Rochdale.
A DLUHC spokesperson said: "These findings highlight the vital importance and urgency of levelling up all parts of the UK as we recover from the unprecedented Covid-19 pandemic. Our Levelling Up and Regeneration Bill will enshrine in law our 12 levelling-up missions, such as closing the gap in pay and productivity, effectively eradicating child illiteracy and innumeracy, and closing gaps in healthy life expectancy.
“We recognise the pressures on the cost of living and we are doing what we can to help, including spending £22 billion across the next financial year to support people with energy bills and cut fuel duty.”
The picture in each borough of Greater Manchester
Bolton
The average child poverty rate across Greater Manchester is a worrying 25 per cent. However, in Bolton a staggering 31 per cent of children live below the poverty line. One ward in particular, Great Lever, is seeing more than 57 per cent of children grow up in poverty, a 'shockingly high number' according to the GMPA.
Rising energy costs are also having an effect on households in Bolton, with families having to choose between heating their homes and eating. Data gathered from the GMPA reveal that 14 per cent of homes in Bolton are in fuel poverty, with 11 per cent also struggling with food insecurity. These figures are only likely to increase when energy bills are set to rise again in October.
Responding to the report's shocking findings, Bolton South East MP, Yasmin Qureshi, said: “Figures from Greater Manchester’s ‘Poverty Monitor’ are worrying for myself, my office, and most importantly my constituents. As the cost-of-living crisis deepens, we’re seeing more and more children plunged into poverty, most notably in Great Lever, and still the Government refuse to act.
“The Chancellor needs to introduce a windfall tax to provide a real support package – up to £600 for the poorest households. He could also cut VAT on energy bills, reverse the £20 cut to Universal Credit, and end the National Insurance hike. These measures are a starting point to help working families ease the burden of poverty during the current crisis.
“Looking ahead to the future, the Government needs to address the key causes of poverty – the lack of affordable housing, the low wage epidemic, and high childcare costs. It should be the goal of any Government to eradicate poverty.”
Manchester
In Greater Manchester's largest borough the figures are just as alarming. Manchester has the second highest child poverty rate, with 32.5 per cent of children experiencing poverty.
There is a stark difference in child poverty across the borough however. This is highlighted by Cheetham ward in north Manchester having an 'alarming' child poverty rate of 51.2 per cent, while another ward has the lowest rate in the region, with only 3.5 per cent of children in Deansgate ward growing up in poverty.
Manchester also has the highest amount of residents living in fuel poverty, at 19.8 percent, and 11.5 per cent of people living in food poverty. The city council say they are creating a poverty strategy and an action plan to tackle this, but agree with the GMPA that more action is needed by central government to address these issues.
Joanna Midgley, Deputy Leader of Manchester City Council, said: "The high rate of child poverty in Cheetham ward is alarming. Manchester Council works hard to provide support and advice to residents on low incomes. We are currently updating and refreshing our poverty strategy and implementing our 'Build Back Fairer' action plan so that we can create the best outcomes for our residents and create a fairer more inclusive city. However, the main drivers lie with central government, and I want to see government put in place a national poverty strategy and take urgent action on the cost-of-living crisis to help people across Manchester who have been hit so hard by this.”
Rochdale
Rochdale is another borough which contains a ward where more than half of children are living in poverty. The ward with the highest child poverty rate is Milkstone and Deeplish ward where half (50 per cent) of all children are living in poverty.
Across Rochdale, 28 per cent of children are said to be in poverty, just above the average for Greater Manchester as a whole with 25 per cent. GMPA’s Poverty Monitor also shows that 15 per cent of Rochdale residents are in fuel poverty and 12 per cent are struggling with food insecurity.
Neil Emmott, Leader of Rochdale Council said: "Rochdale Council is doing everything we can locally to provide advice and support to families across the borough to help them through the cost of living crisis. But the main drivers lie with government and we desperately need a national anti-poverty strategy to address the large inequalities we face in Rochdale and across the UK.”
Oldham
The ward with the highest rates of child poverty is found in the borough of Oldham, the Poverty Monitor reveals. Coldhurst, just north of the town centre, has nearly two thirds of children living in poverty. The child poverty rate of 64 per cent in Coldhurst is much higher than elsewhere in Greater Manchester.
According to Oldham Council, Coldhurst has the lowest median household income in Oldham at £14,315, with the rest of the borough averaging £22,289. Only 39.6 per cent on Coldhurst ward residents are employed, compared to 58 per cent in Oldham as a whole with just under 20 per cent of residents claiming out of work benefits.
Overall, Oldham has an average child poverty rate of 36 per cent, according to the Poverty Monitor, far higher than the Greater Manchester average of 25 per cent. This is coupled with more than 15 per cent of households being in fuel poverty and 11 per cent struggling with food insecurity.
Wigan
The borough of Wigan has one of the lowest rates of children living below the poverty line in Greater Manchester. The overall child poverty rate for the borough is lower than the region's as a whole, at 18 per cent. But, some wards do have a rate above the regional average, with the highest coming in Leigh West where 27.4 per cent of children were found to be living in poverty.
More than 30,000 people were in receipt of Universal Credit, one of the highest in the region. The rates of fuel poverty and food insecurity were still high, coming in at 14.2 per cent and 10.3 per cent respectively, according to the Poverty Monitor.
David Molyneux, Leader of Wigan Council said: “ The child poverty figures for our borough are alarming. Wigan Council is doing everything we can to provide support and advice to residents on low incomes but the main drivers lie with central government. We need to see government address the cost of living crisis and put in place a long-term national anti-poverty strategy to help residents across Wigan now and in the future.”
Salford
The leader of Salford Council has slammed the government's 'Levelling Up' agenda in response to the Poverty Monitor's findings. Coun Paul Dennett says the government needs to act to help areas in Salford that have been 'forgotten'.
The average level of child poverty is at 22 per cent, according to the Poverty Monitor, which is below the average of Greater Manchester as a whole (25 per cent). However, figures from the Ordsall ward showed 32 per cent of children growing up in poverty, the highest rate in Salford.
Another worrying find from Salford was that the Pendleton and Charleston ward had the highest percentage of free school meal eligibility, with more than 52 per cent of children eligible. The next highest rate for this was in Manchester's Harpurhey where just over 50 per cent were eligible.
GMPA’s Poverty Monitor also reveals that 15 per cent of Salford residents are in fuel poverty and 9 per cent are struggling with food insecurity.
Paul Dennett, Leader of Salford Council said: "It's a damning indictment of the government's levelling up agenda, that those areas such as Ordsall which were at the heart of the industrial revolution - and one of the biggest losers from deindustrialisation under Thatcher - 40 years on are still amongst the poorest areas of the country. This country's economic model does not work. We need a serious government led economic plan to bring industry and prosperity back to regions of our country who have been forgotten for so long."
Tameside
Tameside is another borough where, while the average rate of child poverty is below the regional average, there are some wards where it is 'shockingly high', the GMPA group say. Just over 22 per cent of children are growing up in poverty across Tameside, with Denton West recording the lowest rate at 12.4 per cent.
But, in St Peter's ward a high 43.3 per cent of children are below the poverty line. This, together with nearly 15 per cent experiencing fuel poverty and 15 per cent struggling with food insecurity, is 'shocking reading', according to Tameside Councillors.
Councillor Ged Cooney, Leader of Tameside Council said: "The child poverty figures across Tameside make shocking reading. The Council is doing everything we can locally to support families and individuals through the cost of living crisis but we need the government to develop a national poverty strategy to help people during this difficult financial time and beyond.”
Bury
Just under 22 per cent of children are below the poverty line in Bury, according to the Poverty Monitor. The highest rate can be found in East Ward (45 per cent), while the lowest can be found in North Manor (8.3 per cent).
The 10.3 per cent of people struggling with food insecurity is also relatively low compared to the rest of Greater Manchester, while still 'alarming' according to the borough's council leader. The fuel poverty rate stands at 13.4 per cent of residents, which while is not the highest in the region, is only likely to increase in the coming months.
Eamonn O'Brien, Leader of Bury Council said: “At Bury Council we are doing everything we can to provide local people with advice and support – it is alarming to see these high child poverty figures. The main drivers to help people out of poverty lie with central government and it’s vital they act on the cost of living crisis and put in place a long-term anti-poverty strategy to help residents in Bury and across the UK.”
Stockport
Stockport and Trafford have recorded the lowest poverty rates in the 2022 Poverty Monitor. Stockport has an overall child poverty rate of 14.2 per cent, which is significantly lower compared to Oldham, Manchester, and Bolton.
The ward recording the highest rates of child poverty is Brinnington and Central, at 28.7 per cent, while the lowest rate is found in Bramhall South and Woodford with 4.3 per cent of children below the poverty line. The borough has the lowest rates of of households experiencing fuel poverty in Greater Manchester, at 12.2 per cent, while the percentage of households struggling with food insecurity is one of the highest, at 12.2 per cent.
Trafford
The borough of Trafford has the lowest rates for both child poverty and households struggling with food insecurity in Greater Manchester. But, the figures were still considered 'stark reading' for council leaders.
The overall rate of child poverty in the region is 11.4 per cent, with Clifford ward recording the highest rates (30.4 per cent). The lowest rate was found in Hale Central with just 3.5 per cent of children below the poverty line.
The percentage of households struggling with food insecurity was also the lowest in the city-region here, at 7.3 per cent. The household poverty rate was also at a lower 12.8 per cent.
Andrew Western, Leader of Trafford Council said: “The child poverty figures make stark reading. While overall child poverty rates are low across our borough there is always more we can do locally to provide advice and support to people in poverty but the main drivers lie with central government. It’s vital government address the cost of living crisis and put in place a long-term national anti-poverty strategy to help residents across Trafford now and in the future."
