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UK Recession Woes – Whose are the biggest?

Unlike a double dipped flake, the UK recession hasn’t been pleasant. Whether male or female, young or old, cat or dog, everyone’s been feeling the pinch. But in typically British fashion just who has been hit hardest by the financial crisis has become a point of contention.  Conflicting reports are consistently emerging, with each claiming a different social group has been worst affected.

One such report asserted that Northerners had been stung the most, with 100,000 people unemployed across the North of Britain in 2011.

Meanwhile, a report conducted by the consumer watchdog discovered that since the crisis began the living standards of British youth had fallen the most. The statistic heavy findings of a first quarter Which? report also revealed that as a result of high unemployment, low wage growth and rising fuel and housing costs, the standard of living for young people had dropped by twice the national average, with that demographic owing nearly 50 per cent of their income. Executive Director of Which? Richard Lloyd was quoted as saying ‘The recession has hit them hardest: they’re struggling to get on the housing ladder, dipping into savings and relying on family handouts to get by’.

This account was preceded by one which compared unemployment statistics for Black Britons with Black Americans and found that the levels of unemployment for the former were much higher. According to the report, compiled by the British Sociological Survey, high levels of black unemployment have been seen in the past three recessions. The assessment concluded that there is still significant ethnic inequality in Britain. During a society conference in Leeds, University of Manchester Professor Li Yaojun commented that the current level of black unemployment ‘gives a fairly strong indication that the flexible labour market policies adopted in Britain in the last few decades did not protect the minority ethnic groups against the repercussions of recessions.’

Then, towards the close of June it appeared that the recession was hitting families with middle-incomes the most. According to data compiled by the Office of National Statistics the economic slowdown, high inflation and sluggish wage growth has seen households incomes squeezed more than they have been since the 1930’s. For the middle fifth of households this has meant an average annual drop in disposable income of £1,100.

Lately, it is British women who have worn the badge of ‘worst effected’. In the last two years unemployment among middle aged British women has increased by 39 per cent, 34 per cent more than experienced by all over-16’s. Yvette Cooper, the British Shadow Home Secretary and Shadow Minister for Women and Equalities stated that women had been most affected by the recession because they had seen ‘the steepest increases in unemployment, the biggest assault on their pensions, and at the same time they are still being stretched in all directions, looking after their children and grandchildren, and caring for elderly relatives too.’

Assessments regarding why women are coming off worse have cited work, pay, childcare and benefits as core issues. Currently, female unemployment has reached its highest level for 25 years, with 1.1 million out of work. This has been in part attributed to cuts made to the female-heavy public sector (including education and the NHS). Public sector pay was also frozen in 2010, 58 per cent of those affected were women and the repercussions are continuing to be felt. When you combine these factors with the three year freeze on child-benefit payments, Child Tax Credit cuts and alterations to benefit rules, many female incomes have taken a big.

Next week it may well be proven that UK goldfish are having the toughest time.

All joking aside, these reports may be conflicting but they prove just how widespread and devastating the effects of the UK recession have been and continue to be.

The latest figures have shown that as a result of repossession, eviction and unemployment, a UK resident risks losing their home every two minutes. And last year across Britain almost 130,000 people acquired food they simply couldn’t afford to buy from food banks. Charity Food Banks (run primarily by The Trussell Trust) began opening in 2011. They provide three days worth of tinned and dried food to those who have no other options. Vouchers for food parcels are issued by GP’s, social workers, care workers and health visitors. With the UK recession still very much ongoing the chairman of The Trussell Trust sees the situation worsening. Chris Mould has forecast that by 2015 they will be supplying half a million Britons with basic, essential foods. He has been quoted as saying ‘Parents skip meals or consider crime to feed their children. The shocking truth is that thousands are going hungry in 21st century Britain.’

The fact that 1 in 5 of those residing in the sixth richest country on earth are living in poverty is a startling one. And when you consider that recent statistics have revealed a correlation between the economic downturn and increasing UK suicide rates, which social group is most affected by the recession ceases to matter.

When it comes down to it we’re all struggling and if the situation doesn’t change soon we could all be struggling a lot more.

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