Poverty in Sheffield (Launch report)

Launch report, 27th March 2004: workshops | indymedia lab | film room | ideas | feedback | media | finance | summing up

The workshop was led by Father Shaun Smith from Church Action on Poverty.

“Poverty is not only about shortage of money. It is about rights and relationships, about how people are treated and how they regard themselves, about powerlessness, exclusion and loss of dignity. Yet the lack of an adequate income is at it’s heart” (TARA Projects, fair trade crafts producer in North India)

"There is no poverty in Sheffield, we sorted that out" (Richard Caborn MP, to local poverty campaigners)

Father Shaun began by outlining some of the main points and a lively workshop followed. Those in poverty were identified as generally people who are unemployed, or with long-term illness or disability, or on low pay. The degradation of seeking benefits was talked about with several in the audience speaking on the problems of getting assistance and the attitude of the benefit providers (for example). The Impact report on low pay was referred to as an example of the problems of low pay and also how privatisation of public services is making the situation worse for many workers.

A major problem for those in poverty is the credit culture, and the range of companies who offer credit at crippling rates of interest, such as Brighthouse in Sheffield. Many poverty action groups are seeking regulation on the loan companies while trying to put an alternative into place. Regulation means a cap on interest so high rates can no longer be charged, this cap is in place across Europe and in many states in the US. Secondly non-profit community financing, supported by organisations such as the Sheffield Credit Union Development Agency, can replace the loan companies and credit that drives people to the brink and over.

Another way is to increase peoples knowledge about credit and financial workings as a whole. Groups such as the South Yorkshire moneyline and the Debt Support Unit at the Citizens Advice Bureau work to help people with the forms, procedures and smallprint which plagues sorting out finances. These organisations are heavily in demand, the Debt Support Unit has handled 6671 enquiries in the last year and those enquiries indicate just part of the problem.

The culture of borrowing has led to people living hand to mouth, credit means people don’t have to save and many always live ahead of what they have. The expectations of wealth and lifestyle place demands on people, through media, friends or children. Often moneylenders are part of the community and borrowing is no more than a neighbour popping round for a cup of tea.

There are questions over what is the root cause of poverty, that by concentrating on what can be done immediately we lose why people end up in poverty and the faults of the world around them. Ideas such as the minimum wage and tax credits have been good, they could be much better. The self interest of government and business to promote the Victorian ‘work ethic’ and individual isolated responsibility is clear, the responsibility for poverty must (also) be placed upon government and business.

A Watchdog report was shown which looked at the actions of lenders including Provident Financial which has 1 ½ million customers. People are often targeted who otherwise are unable to get an overdraft or loans from a ‘reputable’ lender. The distress debt can cause and the indifference of the people who happily led them into the situation is stark.

There is an aim to have a full financial inclusion policy where information on debt is spread throughout the community. However there are many problems with this as people do not quickly come forward, even if information and advice is offered next to a busy credit union.

The need for a living wage for all to give an adequate level of income and better meet needs. The action of trade unions is central, as is the need for wider organisation and involvement.

After a short discussion a few people wanted to organise a protest against debt, and especially credit companies using high interest rates to trap customers. Credit unions will also be publicised. A follow up meeting was held in the plenary to sort out some of the details of the protest.