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Millions of working families one push from penury

Posted: 18 Jun 2012, 19:13
by Aurora
The Guardian - 18/06/12

Almost 7 million working-age adults are living in extreme financial stress, one small push from penury, despite being in employment and largely independent of state support, according to the most comprehensive study yet of the finances of employed households, commissioned by the Guardian.

Unlike the "squeezed middle", these 3.6m British households have little or no savings, nor equity in their homes, and struggle at the end of each month to feed themselves and their children adequately. They say they are unable to cope on their current incomes and have no assets to fall back on, leaving them vulnerable to something as simple as an unexpectedly large fuel bill.

The findings challenge the argument made by the work and pensions secretary, Iain Duncan Smith, who said last week that parents should get a job to ensure their children are not brought up in poverty.

Article continues ...

Posted: 18 Jun 2012, 20:31
by RenewableCandy
Basically, stingy wages from large companies, plus high house prices/rents, mean that HMG is having to fill the gap via things like Housing Benefit and those "credits" you get from the DWP if you can work your way through an 80-page form.

They don't understand that enhancing the min wage would actually save them money. So would coming down hard on second homes and empty properties: that would make housing more affordable, leaving more of people's wages to spend on all the services those self-employed people are trying to sell.

Actually, I don't think people in government understand the circular nature of money in the economy at all.

Posted: 18 Jun 2012, 21:36
by Aurora
RenewableCandy wrote:Actually, I don't think people in government understand the circular nature of money in the economy at all.
+1 - Never a truer word ...