Employment, Poverty and Globalization
Edited by Hans-Jürgen Andreß and Henning Lohmann
Chapter 9: Is Work a Route Out of Poverty: What Have New Labour’s Welfare-to-Work Measures Meant for the Working Poor in Britain?
9. Is work a route out of poverty: what have New Labour’s welfare-to-work measures meant for the working poor in Britain? Sara Connolly INTRODUCTION The pioneering studies of poverty in the UK conducted by Rowntree (1901) in the late nineteenth and early twentieth centuries established the points in a life cycle when individuals were most at risk of poverty – childhood, early parenthood and old age – and the associated interactions with the labour market which generated most of these risks – absence of an earned income due to unemployment, ill-health, death of the main income earner or retirement. While much has changed in terms of family structures, the nature of employment and the establishment of the welfare state, Rowntree’s insights into the causes of and routes out of poverty remain valid. Most modernday poverty is associated with the absence of an earned income and the households most at risk remain those with children or those with elderly people. As a consequence, government intervention in the UK has revolved around ﬁnding ways of providing incentives to work for those who can work and supporting those who cannot. This raises the question of whether work does protect households from poverty. Through an examination of trends, incidence and risk factors associated with in-work poverty, the aim of this chapter is to consider the extent to which employment provides an escape route from poverty. We discuss the incidence and composition of the working poor in Britain and consider whether work does indeed pay. BACKGROUND The period...
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