Poverty, Inequality and a Modern Social Contract Relevant for a Changing World

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Poverty, Inequality and a Modern Social Contract Relevant for a Changing World DISCUSSION PAPER Poverty, inequality and a modern social contract relevant for a changing world Julia Unwin Julia Unwin is Chief Executive Officer of the Joseph © Reichstein Foundation and Rowntree Foundation and the Joseph Rowntree Joseph Rowntree Foundation 2014 Housing Trust. Joseph Rowntree Foundation (JRF) The Joseph Rowntree Foundation was established Head Office a century ago in the United Kingdom and is a very The Homestead significant philanthropy, known for its high quality 40 Water End research and advocacy work. The associated Joseph York Rowntree Housing Trust is a major social housing YO30 6WP provider with 2500 units under management. Tel: +44 (0)1904 629241 The Foundation searches out the underlying http://www.jrf.org.uk/ causes of poverty and inequality, and identifies https://www.facebook.com/ and demonstrates solutions – through research, JosephRowntreeFoundation developing and running services, stewardship of land and buildings, innovating and supporting others to innovate. It influences positive and lasting change, and brings people together to share ideas. Previously Julia was a member of the Housing Corporation Board for 10 years and a Charity Commissioner from 1998-2003. She was Deputy Chair of the Food Standards Agency, worked as an independent consultant and previously was chair of the Refugee Council from 1995 until 1998 and is currently a member of the University of York Council. Her most recent book, Why Fight Poverty?, was published in November 2013. Joseph Rowntree and his philanthropy The Joseph Rowntree Foundation was created over 100 years ago by Joseph Rowntree, a wealthy Quaker businessman. His chocolate making enterprise was guided by providing fair pay and working conditions for direct employees. It also benefitted from Britain’s global ascendency in trade and economic relations at that time. The firm created significant personal wealth for Today, JRF and JRHT combines this twin heritage Rowntree and his family. In leaving his considerable in our mission of securing lasting social change. fortune to philanthropy he urged his trustees not Together, we search out the causes, demonstrate to fund a soup kitchen in York, as it could readily the solutions, and invest quite considerably in raise money but instead to ‘find out the causes of influencing policy change. Both sides of the social evil’. With all the confidence of the turn of organisation represent both the greatest risk, the century, he clearly believed that if only sufficient and the greatest opportunity, to each other. But effort were applied, social evils could be remedied. fundamentally if someone is working as a laundry He pioneered a form of early corporate social assistant in one of our care homes, a gardener in our responsibility, both running his factory in ways very beautifully landscaped grounds, or a research that even today might be deemed progressive, and manager running a multi-million programme, they building New Earswick, the model for garden villages are part of that purpose – achieving lasting positive across the world, as a housing estate for his workers. social change. Green and pleasant housing replacing the slums of late Victorian York. This twin legacy continues to this day. The Joseph We search out the causes, Rowntree Foundation funds a major programme of demonstrate the solutions, and social research, and provides housing, and retirement communities, as well as a mix of care, in the north invest quite considerably in of England. This deep intellectual heritage means influencing policy change. that we continue to study and count the numbers of people in poverty: publishing annual reports, and using publicly available data to share in an accessible way the information about poverty, about housing, and about changing demography (data.jrf.org.uk). And we continue to run housing and care operations, building a 21st century version of New Earswick of 540 homes, to a very high environmental standard, building and supporting a mixed community. 1 Discussion Paper This presents us with both challenge In each of these areas, and countless others we have and opportunity: sought to combine the intellectual capability, the networks and the power of philanthropy, with the We pay the Living Wage to all our staff because actions, services and developments of the housing association. Our additional investment has been in • Our research tells us that without a decent making sure that together these add up to more income level no one can have an acceptable than the sum of their parts, and that the potential standard of living; for achieving lasting social change is realised. • Our employee data tells us that we have reduced our sickness and our turnover; The Rowntree family of philanthropy • Our residents value continuity of care and service – Joseph Rowntree gave his name to a group we want both them and our staff to feel valued; of Trusts, all of which bear his name, and work • Doing so enables us to influence employers closely together, but only the Housing Trust and and other key stakeholders about our agenda Foundation share Trustees, staff and mission. about poverty. See www.josephrowntree.org.uk. We are building Derwenthorpe, a community for The Joseph Rowntree Reform Trust is non- the 21st century with 540 homes because: charitable, and supports activity on constitutional change and is a historic supporter of the Liberal • We know there is shortage of family housing in our Democrats. The Joseph Rowntree Charitable Trust home city; supports a range of good causes, including those • We want to demonstrate informed, contemporary associated with the Society of Friends, with greater models of place shaping; peace and social justice as key objectives. • Housing that is environmentally advanced is also JRF and JRHT’s model of change is to search out commercially viable; the roots of injustice and demonstrate potential • At a time when housing for poor people looks solutions in order to influence social change at scale. more like slums, we want to demonstrate that we can house poor people well. In this work we are determinedly independent. Independent of political parties, obviously, but also seeking to be independent of sectors and interests. However we are not neutral. We are firmly on the Together these add up to more side of people and places in poverty. than the sum of their parts, and that the potential for achieving lasting social change is realise. We are working to develop Dementia friendly communities because: • The prevalence of dementia is growing and it can herald significant loneliness and isolation; • Communities have the tools to respond; • Without significant social interventions, this social change will be massively damaging; • There is a business case for making sure that people with dementia, and their friends and family, can continue to be engaged as citizens, visitors and customers. 2 Discussion Paper Poverty & inequality in the UK and Australia A changing, volatile Britain It is two decades since Osborne and Gaebler The context in which this work is happening matters wrote their seminal work on the role of government and has been central to the work and direction of as steering, not driving. But the message that JRF over the past century. government does not hold all the answers is well and truly established.1 Britain’s financial deficit and programme of austerity, the reality of major demographic change, the shock The view that government is too big, and the and uncertainty linked to climate change, are well assumption that it can simply withdraw, allowing rehearsed, and largely well reported. So too is a loss citizens more freedom and scope for enterprise, is of confidence in government and in public service, one held across the world, but there is no consensus a distrust of politicians, and a – frequently digitally about whether or not that should be done, how it enabled – sense of scepticism and challenge. might be accomplished, and what the implications are. What is more, there is little rigorous analysis What matters is how governments, markets and about what this means for the other partners in the communities and individuals respond. Modern social contract, and the way it should be re-drawn Britain is characterised by change, by volatility, for modern times. by shocks. The global nature of the market was amply demonstrated in 2008, and there has been little since then to suggest that – in economic terms at least – borders will be able The view that government is too do much to protect their citizens. The power and big, and the assumption that it economic efficiency of global markets, frequently can simply withdraw, allowing contrasted with the relative powerlessness of national governments, can contribute to a loss citizens more freedom and of confidence both by and in governments. scope for enterprise, is one held across the world, but there is no consensus about whether or not that should be done, how it might be accomplished, and what the implications are. In this work we are determinedly independent... However we are not neutral. We are firmly on the side of people and places in poverty. 3 Discussion Paper Poverty and inequality are features of modern and An essential feature of the advanced societies, and the debate revolves around four distinct arguments: impact of growing inequality is • Are they real? the growing power of the most • Do they matter? wealthy and the tendency to • And can anything be done about them anyway? capture tax, education and health • What are the solutions? systems to further entrench the There is a live and serious debate, which is both interests of those in the middle to theoretical and political, about the existence of the top of the income spectrum. relative poverty, and the validity of using the label ‘poverty’ when contrasting the relatively well-off lives of everyone in the global north with those leading lives of absolute and visible poverty in Australia has enjoyed the largest real increase in so many parts of the south.
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