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D ECONOMIC DEPRIVATION
1 Index of Multiple Deprivation 2000
The Department of Environment, Transport and the Regions (DETR) have released the Index of Multiple Deprivation 2000. It is a combination of six separate ‘domains’ of deprivation. Each domain consists of a number of deprivation indicators, the results of which are combined to create an overall deprivation result, by ward. The wards are ranked from 1 to 8415, with 1 indicating the most deprived ward and 8415 indicating the least deprived ward. There are 191 wards within Suffolk. The national rank has been included for all wards, along with their overall deprivation score to aid comparison between wards. The 25 most deprived wards in Suffolk are listed in table 1.1, for a comprehensive list of the wards in Suffolk, see Appendix 4. The IMD has not been updated since the last Profile; an update is due later in 2002.
The domains that are used to create the Index are:
Income
Employment
Health Deprivation & Disability
Education, Skills and Training
Housing
Geographical Access to Services
1.1 The top 25 most deprived wards in Suffolk.*
* See Appendix 4 for a list of all wards in Suffolk
Source: DETR. Aug 2000
Index of Multiple Deprivation 2000 for Suffolk Wards
© Crown Copyright. All rights reserved. Suffolk County Council Licence No. LA076864 2000
2 Indebtedness
Indebtedness is one consequence of insufficient income, possibly through unemployment, benefit dependency or low pay. This makes statistics on the subject a good indicator of poverty levels across the county. It should not be forgotten that as Suffolk is primarily a rural county, the small pockets of deprivation will not necessarily be noticed in the statistics. Some families are more likely to be in debt than others; these include the elderly, those with children, those dependent on means tested benefits and lone parents. Debt problems are also more likely to be caused by week to week budgeting problems and the lack of ability to afford essentials such as housing and clothing, rather than excessive consumerism. (‘Poverty in Suffolk; A Profile’. 1998 Page 43)
The following figures indicate the level of indebtedness and trends in Suffolk. Debts that result in court action tend to be the most severe. County Courts are the judicial bodies responsible for debt judgements, but Magistrates Courts retain the responsibility for local tax debts, the recovery of fines, and certain maintenance debts. Figures for Suffolk’s County Courts do not include summonses produced by the National Lord Chancellor’s Department summons production centre at Northampton, and significantly they do not include Anglian Water’s summonses for water debts as these are issued at the Huntingdon County Court.
It should also be remembered that while there is a strong link between poverty and debt, not all people subject to court action are on low incomes.
2.1 Summonses for Unsecured Debts
Source: The Court Service. September 2001
2.2 Mortgage Debt Possession Action
Source: The Court Service. September 2001
2.3 Mortgage Debt Possession Action
Source: The Court Service. September 2001
2.4 Other Housing Possession Action
Source: The Court Service. September 2001
2.5 Evictions Carried Out
Source: The Court Service. September 2001
2.6 Local Authority Rent Arrears
*Suffolk Heritage Housing Association provide the majority of housing services within Suffolk Coastal but also operate in 16 other districts and do not collect separately this information specifically for Suffolk Coastal. These figures are for current tenants only i.e. they do not include former tenants rent arrears.
Source: District Councils, Housing/Finance departments.
3 Low Income
Means Tested Benefit
Reliance on means tested benefits indicates a family living on a low income, which also makes it a good indicator of the extent of poverty within the county.
3.1 Means Tested Benefits 2000 (Income Support, Job Seekers Allowance)
N.B Some Suffolk residents come under the Diss Benefit Agency Office. However, the figures for Diss also include some Norfolk residents and therefore have not been included. This means that the true figure for Suffolk is underestimated.
Source: Benefits Agency, 2000
3.2 Housing and Council Tax Benefits
Source: District Councils, Benefits/Revenues departments.
(Most claimants of Housing benefit will also be receiving council tax benefits. It would therefore be double counting to add up the totals for each district).
Low Pay
Poverty is not confined to those people surviving on means-tested benefits. Many people who are in work are also existing on low incomes. Nationally, around a third of those with income less than half of the national average live in a household with an earner. In 1999 39% of the national full time workforce earned less than the Council of Europe’s ‘Decency Threshold’ of £7.18 per hour (£272.07 per week).
3.3 Percentage of the workforce being paid low wages (1999)
Note: Part Time male figures not available for East of England due to small sample size.
In April 1997, the equivalent low pay thresholds were £4.61 ph for half male median earnings, and £6.60 ph for the Council of Europe’s decency threshold. The increase in the threshold over the two years accounts for the increase in the basic cost of living over that time period.
3.4 Percentage of workforce being paid low wages (1997)
Source: Low Pay Unit analysis of unpublished data from New Earning Survey (NES) 1999.
It seems that while the cost of living has gone up (illustrated by the increase in the low pay thresholds of both indicators), increases in wages, particularly for those in full time employment, have not risen in line.
Free School Meals
Free school meals are a good indicator of low levels of income, although levels of take-up can vary. They are available to children in full time education in families claiming income support or job seekers allowance (income based). The following map on page 59 has been drawn to show where pupils live who are claiming free school meals.
3.5 Free School Meals eligibility
Source: Education department, SCC
Table 3.5 shows a downward trend in the proportion of eligible pupils. Eligibility remains below the national average, but above that of similar county councils.
4 Wealth/Assets
4.1 Household Disposable Income (£ per head)
Source: Regional Accounts, Office for National Statistics (ONS)
Disposable income measures income available for households to spend on items not deemed as life ‘necessities’. This consumption of luxuries is important when looking at the factors that determine consumer spending and saving.
Percentage of children attending SCC schools taking free school meals
© Crown Copyright. All rights reserved. Suffolk County Council Licence No. LA076864 2000
Source: Department of Education, Suffolk County Council
Click map for larger image.
5 Suffolk’s Economy and Development
5.1 Gross Domestic Product (£ per head) (workplace based)
Source: Regional Accounts, ONS
Gross Domestic Product (GDP) is the total value of the goods and services produced by a country in a year. It can be calculated to any geographical level. Often due to the differing size and populations of different areas GDP is calculated per capita (table 5.1) as this gives a more accurate comparison with other areas. Suffolk’s GDP has increased in line with both the Eastern Region and the UK over the last few years. Unfortunately the figures for 1998 are the most recent available, so it is difficult to draw conclusions about the current economic position of the county.
5.2 Gross Value Added in Manufacturing (£ per head)
by former TEC area therefore * does not include Waveney
Source: Regional Accounts, ONS
Gross Value Added is the amount of value added to a product during the manufacturing process. Suffolk appears to be lower than both the Eastern Region and the UK because of the composition of manufacturing industry within Suffolk. Like GDP, Gross Value Added is calculated per capita, to allow clearer comparisons with other areas to be made.
Average Earnings
5.3 Male Average Gross Weekly Earnings (Adult Rates)
5.4 Female Average Gross Weekly Earnings (Adult Rates)
Source: New Earnings Survey 2000
In tables 5.3 and 5.4 the continuing difference between male and female wages is clear. Both in Suffolk, and nation-wide, wages for female workers are noticeably lower than for their male colleagues. The percentage difference (column 4 in 5.3 and 5.4) between average wages in Suffolk and nation-wide has been fairly consistent over the given period and also doesn’t differ widely between the sexes.
As the above tables illustrate many low paid employees, both in the county and nation-wide, are women. On average, earnings for women are about three-quarters of those for men in the East of England. This actually underestimates the difference as that figure is based on full-time employees. Earnings for part-time workers are lower, even on an hourly rate, and women are more likely to be part-time employees.
5.5 Average Full-time Weekly Earnings
Source: New Earnings Survey, 2000
Tables 5.5 and 5.6 show that although average wages in Suffolk over the last 4 years have increased, they have not increased as much as East of England average wages.
5.6 Average Hourly Earnings in £’s
Source: New Earnings Survey, 2000
Within Suffolk 32.4% of employees are earning less than £250 per week, and at District level the difference is even more pronounced. The highest proportions of people earning less than £250 per week are in Waveney (45.6%) and Forest Heath (37.5%).
Most of the people earning under £250 per week are in the lower paid occupations such as clerical & secretarial, personnel services and other (unskilled) occupations. These people are often those with the worst access to skill development opportunities and have low job security due to the introduction of new technologies and working practices.
Source: East of England Objective 3 Development Plan. The East of England Prosperity Group 2000.
Two main industries are much more likely than others to employ temporary and casual staff, these are: Hotels and Restaurants (18% of staff are casual or temporary) and Agriculture (16%). Both of these industries are subject to seasonal fluctuations in labour requirements, and hence their use of temporary staff. In all other industries the composition of temporary staff tends to be around 7% of the workforce.
Source: Suffolk Economic & Labour Market Assessment. Suffolk TEC
Employment
(See also Chapter I: Work Deprivation)
The unemployment figure for the Suffolk (2.3%) remains below the national unemployment level (3.1% at Sept 2001), though a little above the East of England average of 2%. This county figure hides a large span of unemployment rates across the districts, from around 1% throughout the west of the county, to 4.3% in the north-east.
5.7 Unemployment by District – Claimant count (September 2001)
Source: National Statistics (via NOMIS)
N.B. Claimant count measure (ILO measures are not available at local level).
There are considerable differences between the causes of male and female unemployment. Men are more likely to be unemployed due to closure or redundancy. While women are still more likely to be ‘discouraged workers’ and therefore out of work due to child rearing (both pregnancy and childcare).
Fewer unemployed people are attempting to return to their previous occupations. This may be because they recognise there are fewer opportunities for their skills, though it may also be because as many as a fifth do not know which occupation to pursue, or would consider doing anything.
Source: Suffolk Economic & Labour Market Assessment. Suffolk TEC.
For a numerical breakdown and ward comparison of unemployment over the last 3 years please see Section I – Work Deprivation.
5.8 Current and Predicted Levels of Total Employment and Value Added by Sector in Suffolk.
Source: Institute for Employment Research
These sectors were tested against forecasts for employment and value added (share of GDP and also an indicator of wealth) taken from the Local Economy Forecasting Model (LEFM) for Suffolk prepared by Cambridge Econometric/ Institute of Employment Research. As with all predictions the forecasts must be treated with a suitable degree of caution. However, they do give a good indication of areas of possible growth or decline.
Table 5.8 shows a predicted major growth in Advanced Services and Distribution/Transport Services. The two sectors showing reductions in staffing levels are food and advanced manufacturing although value added of these are both still positive. Telecommunications shows only a small positive change in staffing levels, 6%, but a massive 102% change in value added.
Whilst Tourism in Suffolk is a large part of the county’s economy, there is no one sector in the LEFM that corresponds to it directly. The Standard Industrial Classification (SIC) that relates most closely to tourism is 92 – Recreational, Cultural and Sporting activities. Within table 5.9 it is included in the ‘Other Service Activities’ sector.
Source: ‘Expanding Suffolk’s Horizons’ (2000). Suffolk Development Agency.
5.9 Employment Change 1998 – 2000 (Suffolk)
Source: Annual Business Inquiry 1998, 2000
NB: Small anomalies in totals are due to rounding of figures by Office for National Statistics
Table 5.9 shows the numbers employed in each area of industry, by Standard Industrial Classification sector. There has been a definite shift from manufacturing jobs to those in the service industries - distribution, hotels and restaurants, transport and communications, banking, finance and insurance and public admin., Education and Health.
Business Formation
5.10 Total Vat Registrations during the year
(by TEC area therefore * excludes Waveney)
Source: Department for Trade & Industry (DTI)
5.11 Surviving For 3 Yrs after VAT registration
(by TEC area therefore * excludes Waveney)
Source: Small Business Service 2000
Status of Business
Two thirds (66%) of all employers in the former Suffolk TEC area (ie excluding Waveney) are single site organisations with no other establishments, whilst a fifth (21%) are branches or subsidiaries of British companies. Only 4% are headquarters with branches elsewhere. Very few organisations are subsidiaries or branches of foreign owed companies, or are public sector organisations (8%). This breakdown suggests that most local employers are able to determine their own strategies and policies without influence by controlling groups outside the TEC area.
80% of all employers in the TEC area sell locally, i.e. in and around Suffolk. 40% sell outside the county but within East Anglia, and a similar proportion (38%) sell elsewhere in the UK. Only 11% have markets in the European Union, and 9% sell to customers elsewhere in Western Europe (outside the EU). As expected, smaller businesses tend to operate in more localised areas, whereas medium and large ones are more likely to have markets further afield.
Most (56%) businesses in the Suffolk TEC area bought supplies locally, i.e. in and around the county. This is a higher proportion than may be found elsewhere in the UK, suggesting that the county’s economy is reasonably self-contained.
N.B. Suffolk LSC covers the whole of Suffolk whereas prior to April 2001, the Suffolk TEC area did not include Waveney.
Source: Suffolk Employer Survey 1999/2000, Suffolk TEC
5.12 Proportion of Business by Industrial Sector
Source: Suffolk Employer Survey 1999/2000.
CONTACTS - ECONOMIC DEPRIVATION
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