Understanding Poverty: Causes, Effects, and Solutions

Poverty is a multifaceted issue with deep societal, cultural, and historical roots. It manifests in numerous ways, often affecting both the individual and community levels. Living in poverty means constantly worrying about basic needs like food and heating, causing stress that can dominate a person’s thoughts from morning until night. This cycle of deprivation can lead to feelings of isolation and despair, making it difficult to participate fully in society.

What is Poverty?

Poverty lacks a single, universally accepted definition, but it is generally understood through four key levels:

1. Relative Income Poverty: Households earning less than 60% of the contemporary median income.
2. Absolute Income Poverty: Households earning less than 60% of the median income at a fixed point in time.
3. Material Deprivation: When a household cannot afford essential goods and activities required for modern-day living.
4. Destitution: When households cannot afford basic necessities such as shelter, heating, and clothing.

The Joseph Rowntree Foundation (JRF) defines poverty as occurring when "your resources are well below your minimum needs."

Causes of Poverty in the UK

Several systemic causes contribute to poverty in the UK:

1. Unemployment and Low-Paid Jobs: Job insecurity and low wages limit future prospects and can create mental health challenges such as anxiety, making it harder to access better opportunities.
2. Ineffective Welfare System: The current benefits system is often insufficient to meet rising living costs. According to The Trussell Trust, 90% of households on Universal Credit struggle to afford essentials like food and toiletries.
3. Rising Costs: The cost-of-living crisis, exacerbated by factors such as the pandemic and the war in Ukraine, has driven up everyday expenses, including gas, electricity, and groceries.

In addition to these economic factors, poverty is also influenced by social aspects, such as:

• Poor Access to Education: Schools with disadvantaged pupils have seen cuts, affecting resources and support, which can lead to long-term poverty.
• Interpersonal Relationships: A lack of early childhood development opportunities and relational poverty can contribute to poverty later in life.
• Abuse and Trauma: Neglect and abuse, particularly in childhood, can have lasting impacts on education and employment prospects, making poverty more likely.
• Discrimination and Inequity: Marginalized groups often face barriers to accessing education and services, perpetuating cycles of poverty.

Addressing the Consequences of Poverty

Tackling poverty requires collaboration from multiple sectors, including government, businesses, communities, and individuals. There is no one-size-fits-all solution, but a multi-pronged approach is necessary. Both the Child Poverty Action Group (CPAG) and the Joseph Rowntree Foundation (JRF) propose key strategies, including:

• Boosting incomes and reducing costs
• Delivering an effective benefits system
• Improving education standards
• Strengthening families and communities
• Promoting long-term economic growth

A Trauma-Informed Approach to Poverty

A trauma-informed approach can provide valuable insights into addressing poverty by focusing on safety, trust, transparency, collaboration, and empowerment. Relationships and community support are key protective factors that help individuals and families thrive despite the challenges of poverty.

Systemic Protective Factors:

• Access to community spaces that offer support and empowerment
• A sense of belonging and collaboration within the community
• Availability of essential support services to foster safety and trust
• A cultural shift to understand the systemic causes of poverty, promoting compassion and connection

Interpersonal Protective Factors:

• Relationships cultivated through community services
• Opportunities to enhance communication and engagement with social institutions
• Support for secure parent-child relationships, fostering collaboration and trust

By strengthening both systemic and interpersonal protective factors, we can develop personal protective factors such as:

• Improved stress-coping mechanisms
• Enhanced problem-solving skills
• Stronger parenting capabilities

Moving Forward: The Importance of Relationships and Community

Poverty is everyone’s concern because it affects all aspects of life and has lasting impacts across generations. A trauma-informed approach focuses on fostering relationships and building community resilience, which can help break the cycle of poverty. Prevention should be at the forefront, with a strong emphasis on supporting families and communities.

If you're interested in learning more or seeking training and consultancy on these topics, contact Lyndsay, our Working Together Lead, at hello@ticservicesltd.com for support on your journey.