Economic inequality and poverty: where do we go from here?

Abstract

PurposeThe paper aims to compare applied social policy approaches to child poverty and economic inequality, the latter being mainly operationalised in the UK in terms of social mobility.Design/methodology/approachThe paper considers the theoretical stance underpinning New Labour's approach towards social policy, with particular reference to “individualisation”, and reviews Government strategies towards tackling poverty and economic inequality.FindingsDespite a decade of unprecedented investment, there is an impasse in reducing child poverty and economic inequality has increased. Policy now relies on education as being the clinching factor to break this impasse. Education is vital but education alone will not tip the balance in eradicating poverty. The assumption that education will facilitate social mobility, by serving to position the UK at the high end of the global labour market, fails to address the prevalence of the “low‐pay‐no‐pay” cycle associated with the flexible labour market. Further measures are necessary to ensure that the labour market accommodates the needs of those entering it.Originality/valueThe paper shows that, given the failure of current social policy to address poverty and inequality, especially given that post‐recession conditions are likely to be less favourable than in the last decade, there is an urgent need for bold, new policy thinking. Pinning all hopes on education – and seeing solutions only in terms of individuals' skills and aspirations, without critical consideration of the nature of the labour market – cannot be accepted as the best way forward.