More than a million people are expected to be pushed into poverty this winter.
Seems a bit odd. Recessions compress the income distribution. Given that we measure poverty in relative terms this means that recessions reduce poverty. I know, I know, mad, but that’s the system that is in use. So, where’s Ms Malik got her information from?
The Legatum Institute, led by the Conservative peer and former government adviser Philippa Stroud, estimated that even if the energy price cap was held at its summer rate of £1,971, another 1.3 million people would slide below the relative poverty line compared with pre-pandemic rates.
But the relative poverty rate doesn’t include energy prices. It’s below 60% of median household income, adjusted for household size, either before or after housing costs.
So, what’s going on here? Legatum has invented its own poverty measure. And that’s it really. Made up out of whole cloth. And given that adviser, Conservative peer thing, what more proof do we need that we need an Augean cleanout?