At this point in time, the UK has not fully entered a Covid-19 recovery phase and the consequences of Brexit are being worked through. It is important to acknowledge that some indicators and research show disruptions, due to Covid-19 especially, which makes planning at a time of uncertainty particularly challenging.

Living with poverty and deprivation can be defined as the consequence of a lack of income and other resources.  A person or household living with poverty and deprivation is seen when their resources are below their minimum needs.  The variety of needs that are taken into account include their diet, clothing, housing and housing facilities, their environment, education and employment. In other words, anything that affects their opportunities or choices to participate in society are key to measuring poverty.

It has been proven that social and economic disadvantages in early life, and the childhood experiences that may come with these disadvantages, have a detrimental effect not only on the children themselves but also future generations.  These lead to the children running the risk of having lower incomes, lower skills and lower standards of health in adult life affecting their opportunities and prospects.

Household incomes and households in poverty

Overall household income levels in Conwy County Borough and Denbighshire are lower than the national average for a range of measures when combined.  Measures of household income include wages, welfare support, investments, pensions and other income for all household members.

Annual household income (2019)

Source: CACI PayCheck data (2019)

A household is taken into poverty if the annual household income (including any benefits received) is below 60% of the average for Great Britain, which puts the official poverty line around £19,250.  A greater proportion of households in Conwy County Borough and Denbighshire are estimated to have income below this level than the British average: about 33.2% of all households or around 31,500 households in total.

Child poverty

Direct measures of Child poverty are hard to collect, so we have to look at proxy data to help us understand this issue at the local level.

One proxy measure is children living in households in poverty. HM Revenue and Customs (HMRC) data shows that there are 4,061 children in Conwy County Borough and 3,560 children in Denbighshire who are living in poverty. This is 19.1% and 18.4% respectively of all children in families which are eligible for child benefit, and is slightly below the average for Great Britain.^[1]

The Denbighshire ward of Rhyl South West is home to 1,350 children living in poverty according to this measure, with neighbouring ward Rhyl West having over 1,300 children living in poverty.  In addition, the Conwy County Borough wards of Tudno, Glyn, Abergele Pensarn and Colwyn, and Denbighshire wards of Denbigh Upper/Henllan and Rhyl East all have more than 250 children living in poverty.

Another useful indicator, also published by the HMRC, is the number of families with children who are claiming tax credits and universal credit. There are about 17,400 children in both Conwy County Borough and Denbighshire living in families that receive tax credits to help supplement their wages or benefit income, this is about 78% of all children in both areas. The majority of these families are in work but on low incomes and for this measure, the rate for Conwy County Borough and Denbighshire is significantly higher than the level of Great Britain as a whole.^[2] This evidence of higher than average in-work poverty is supported by the Annual Survey of Hours and Earning conducted by the Office for National Statistics which shows that average weekly earnings for full time workers in Conwy County Borough are 19% lower than the average for Great Britain, with Denbighshire being 14% lower.

Areas of multiple deprivation

The Welsh Index of Multiple Deprivation measures relative deprivation across a range of domains (income; employment; health; education; access to services; community safety; physical environment; housing) at the lower super output area level for the whole of Wales. An area is multiply deprived if, for more than one of these domains, the area has a concentration of people experiencing that type of deprivation. Generally speaking, the greater the number of domains for which there are high concentrations of deprivation, the greater the overall deprivation in an area. This does not necessarily mean that the same people suffer multiple types of deprivation in the area, although we would expect there to be significant overlap. Lower Super Output Areas (LSOAs) within the 10% most deprived for the overall index tend to be those which are most likely to be eligible for support under funding programmes that are targeted at combatting poverty and deprivation.

An ‘average’ level of deprivation would see 10% of LSOAs amongst the most deprived in Wales.

Conwy County Borough, with 4 of its LSOAs being in the 10% most deprived in Wales (5.6% of all its areas), has a greater proportion of its LSOAs than would be expected in the top 10% most deprived for the access to services domain.^[3]

7 LSOAs in Denbighshire are in the 10% most deprived in Wales (12.4% of all its areas) for most of the domains (and especially in terms of health) except the Physical Environment domain.^[4] Denbighshire has the top 2 ranked LSOAs most deprived in Wales overall: Rhyl West 2 and Rhyl West 1.

Multiple Deprivation in West and South West Rhyl is among the highest in Wales and encompasses worklessness, low incomes, and poor educational outcomes amongst other things. Unfortunately, Rhyl West 1, Rhyl West 2 and Rhyl South West 2 are identified by the Wales Index of Multiple Deprivation as areas of ‘deep-rooted’ deprivation. Areas with ‘deep rooted deprivation’ are those that have remained within the top 50 most deprived – roughly equal to the top 2.6% – small areas in Wales for the last five publications of WIMD ranks.

The health domain of WIMD measures lack of good health. Of all the WIMD domains, the highest number of areas in Rhyl in the 10% most deprived areas was in this domain; clearly demonstrating the relationship between socio-economic disadvantage and health and well-being.^[5] People living in the areas in the most deprived fifth of Conwy County Borough or Denbighshire not only have a shorter lifespan, but also spend less of it in good health compared to those living in the least deprived fifth. There is a difference of 12 years of healthy life expectancy for males in Denbighshire’s most deprived areas when compared to the least deprived (the widest gap for the whole of Wales), and 6.5 years for women. The gap for men in Conwy is 6.9 years and 5.2 for women.^[6] Despite overall increases in life expectancy, the gap between the proportion of life expected to be spent in good health in the most and least deprive areas has shown no clear sign of reducing in the last 10 years.

Deprivation and inequality

Welsh Government research^[7] indicates that certain groups are more likely to experience poverty.^[8]

“…socio-economic deprivation is highly intersectional. Deprivation interacts with protected characteristics, and certain communities of interest and communities of place may also experience worse outcomes in many areas. This intersectionality between deprivation and other characteristics can be thought of as a web, where different areas connect, compounding and exacerbating each other. This makes it no surprise that poverty can quickly become cyclical, or thought of as a trap that is difficult to escape. Unfortunately, disentangling this web is a complex, multifaceted issue that demands work from a wide range of stakeholders.” ^[9]

On the basis of national evidence, the following protected characteristics are more likely to live in the most deprived 10% of LSOAs in Wales (ranks 1 – 191):

• Females from all age groups are more likely to live in more deprived areas than males.
• Younger people are more likely than older people to live in the 10% most deprived LSOAs
• Single people are more than twice as likely to live in the 10% most deprived LSOAS compared with those who are married or in a civil partnership. Nearly half of all people living in the most deprived 10% of LSOAs are single.
• Disabled people
• People who describe their sexual identity as lesbian, gay, bi-sexual or anything other than heterosexual/straight (LGBTQ+ ) are slightly more likely than heterosexuals to live in the 10% most deprived LSOAs
• People with a Muslim faith
• People with a Black Asian Minority Ethnic background

There are equality issues associated with poverty. Welsh Government research indicates the following:

1. Lone parents had the highest rate of transient poverty and persistent poverty
2. Single pensioners also had high levels of persistent poverty (similar to the level for lone parents).
3. Families with two adults were less likely to experience poverty than their single-adult equivalents.
4. Families with children were more likely to have experienced poverty than the equivalent family type (single or couple) without children.

However, it is important to note that these calculations were based on income before housing costs (BHC) and that this has a significant impact on the numbers of pensioners judged to be in poverty. If the after housing cost (AHC) measure were used far fewer pensioners would be classed as in poverty because pensioners (on average) have much lower housing costs than other types of families.

There are other characteristics to consider beyond the family structure types examined in the Welsh Government study. Differences in the prevalence of particular working patterns within different protected groups also need to be considered. The list below is by no means exhaustive, but illustrative examples include:

1. Disabled people are more likely than non-disabled people to be workless and therefore more likely to experience poverty.
2. Women are more likely than men to live in single-parent households, to have low incomes, and to have only part-time work and are therefore more likely to experience poverty.
3. Pakistani and Bangladeshi women are also more likely, than other women, to be workless and therefore more likely to experience poverty.

A period of ill health, or a worsening condition can cause huge difficulties. For those in work, but who are just managing, it can lead to losing employment and then struggling to get back into work. Unable to support themselves and their family, and without the positive psychological and social support that comes from being in work, their wellbeing can decline and their health can worsen.

The gap between the employment rate for those with a long term health condition and the overall age specific employment rate in persons aged 16-64 is 15.3 in Conwy and 14.9 in Denbighshire. Wrexham has the highest rate in North Wales at 17.2. Both Conwy & Denbighshire are higher than the Wales average of 14.1.

Food poverty

Across Wales and the UK, many people are not food secure (see our ‘resilience well-being goal‘ for further information). Food security is defined as being able to consistently afford, access and use the food needed to maintain good health and well-being.   More and more people are finding themselves to be food insecure.  Food banks have been set up in communities where people have recognised this problem of hunger with the intention of meeting immediate food needs.

Drawing on research by YouGov in 2021, a UK-wide mapping tool estimates three different measures of adult food insecurity.

• Hungryis defined as having skipped food for a whole day or more in the previous month or indicated they were hungry but not eaten because they could not afford or get access to food.
• Struggleis defined as a positive response to at least one of the following: sought help accessing food; skipped or shrank meal; gave a reason for not having enough food
• Worryis defined as choosing very worried or fairly worried about getting food.

The table below summarises the findings. Just over 10% of people in both counties experienced hunger because they did not have enough to eat, mainly due to struggle or worry; 5% were hungry.

Percentage of adults experiencing hunger because they did not have enough to eat, January 2021

Source: UK local food insecurity of Adults January 2021^[10]

While we do not have trend data for food poverty, the National Institute of Economic and Social Research states there is a high correlation between destitution (extreme poverty) and demand for food banks.^[11] Demand locally for foodbank parcels have increased across both areas from 2020 according to data from The Trussell Trust.^[12]

• 2,080 parcels were given to 1,283 adults and 797 children in Conwy between April 2020-March 2021 (an increase in demand of 30% for adults and 20% for children on the previous year)
• 6,339 parcels were given to 3,677 adults and 2,662 children in Denbighshire between April 2020-March 2021 (an increase in demand of 48.21% for adults and 46.2% for children on the previous year)

Data poverty

There are also many low income families who are unable to afford subscriptions to broadband services. Mobile data can be a more affordable and flexible option compared to fixed broadband packages as it can be accessed without installation costs, line rental, or long term contracts. Without access to all providers of 4G mobile data, many customers will not benefit from the same offers or deals that others receive throughout the UK. Data, however, can be expensive; unaffordable even for those in poverty or at risk of socio-economic exclusion.

[1] Children living in poverty (proxy measure), Apr 18 – Mar 19 – Source: child in low-income families, child & working tax credit & Universal Credit statistics, HMRC

[2] Child and working tax credits statistics, HM Revenues & Customs

[3] WIMD https://wimd.gov.wales/geography/la/W06000003?lang=en#&min=0&max=10&domain=housing

[4] WIMD https://wimd.gov.wales/geography/la/W06000004?lang=en#&min=0&max=10&domain=overall

[5] Denbighshire County Council (2020). Welsh Index of Multiple Deprivation 2019: Results for Rhyl.  Un-published report.

[6] Source: Gap in life expectancy at birth between the most and least deprived fifth, 2015 to 2017. Public Health Wales Observatory, using PHM & MYE (ONS), WHS & WIMD 2014 (WG)

[7] These were identified as:

1. Lone parents had the highest rate of transient poverty and persistent poverty
2. Single pensioners also had high levels of persistent poverty
3. Families with two adults were less likely to experience poverty than their single-adult equivalents.
4. Families with children were more likely to have experienced poverty than the equivalent family type (single or couple) without children.
5. Disabled people are more likely than non-disabled people to be workless and therefore more likely to experience poverty.
6. Women are more likely than men to live in single-parent households, to have low incomes, and to have only part-time work and are therefore more likely to experience poverty.
7. Pakistani and Bangladeshi women are also more likely, than other women, to be workless and therefore more likely to experience poverty.

Welsh Government, 2014 https://gov.wales/sites/default/files/statistics-and-research/2019-07/140409-dynamics-low-income-en.pdf

[8] Government Social Research (2021). Implementing the Socio-economic Duty: A review of evidence on socio-economic disadvantage and inequalities of outcome

[9] Government Social Research (2021). Implementing the Socio-economic Duty: A review of evidence on socio-economic disadvantage and inequalities of outcome

[10] University of Sheffield, https://shefuni.maps.arcgis.com/apps/instant/interactivelegend/index.html?appid=8be0cd9e18904c258afd3c959d6fc4d7

[11]  The National Institute of Economic and Social Research, Covid-19 Impacts on Destitution in the UK. Presentation delivered to Cardiff Business School, Breakfast Briefing on 15 June 2021.

[12] https://www.trusselltrust.org/news-and-blog/latest-stats/end-year-stats/