Deprivation and Poverty

This topic area covers statistics and information relating to levels of deprivation and poverty in Hull including local strategic need and service provision. Levels of inequality in Hull are high in Hull predominantly due to deprivation and poverty, and as a result as much information as possible is presented for different groups of individuals based on deprivation levels based on where a person lives. So information on deprivation can be found on most of the topic web pages. Further information relating to children eligible for free school meals can be found under Schools, Education and Qualifications and information relating to food insecurity (concerns over being able to provide food for the family) can be found under Financial Resilience both under Health and Wellbeing Influences. Further information relating to unemployment and benefit claimants can be found within Employment, Economy and Healthy Workplaces under Health and Wellbeing Influences. Further information relating to the increases in the rental properties and mortgage and landlord repossessions can be found within Housing and Households under Health and Wellbeing Influences. A needs assessment was completed in Hull during 2023 for people with multiple unmet needs. The report – which was finalised in 2024 – is available within Multiple Unmet Needs under Vulnerable Groups.

This page contains information from the Office for Health Improvement & Disparities’ Fingertips. Information is taken ‘live’ from the site so uses the latest available data from Fingertips and displays it on this page. As a result, some comments on this page may relate to an earlier period of time until this page is next updated (see review dates at the end of this page).

Headlines

• Poverty and deprivation have a strong influence on physical health and mental wellbeing, as well as affecting other factors which influence health and wellbeing such as employment, education and housing.
• People living in more deprived areas are likely to have poorer access to healthcare and other services. The circumstances people live in can make it harder to live healthily, and psychosocial stress leads to physical harm. The prevalence of smoking, poor diet, physical inactivity, stress, etc tend to be higher for people living in more deprived areas. Barriers to health improvement may include financial barriers, transport issues, access to good quality fresh fruit and vegetables, safe parks, as well as other difficulties like getting time off work for GP appointments.
• The Index of Multiple Deprivation is generally used to defined levels of deprivation. A score has been determined nationally from specific indicators which has been applied to 166 geographical areas within Hull. It means it does not represent individuals exact circumstances only an average of people who live in that area and there will be some better off than average and some worse off than average who live within that area.
• Based on the Index of Multiple Deprivation 2019, Hull is the fourth most deprived local authority in England (out of 317). Half of Hull’s geographical areas are in the most deprived fifth nationally.
• The percentage of children (under 16s) living in poverty in Hull is also high. For 2022/23, it is estimated that 12,406 children representing 23.1% of all under 16s live in absolute low income families in Hull, and that 15,321 children in Hull representing 28.5% of all under 16s in Hull live in relatively low income families (much higher than England at 15.6% and 19.8% respectively). For the 2022/23 school year, almost one-third of school children in Hull are eligible for free school meals (32.9%) compared to under one-quarter of children in England (23.8%).
• In 2022, it was estimated that 20.4% of households were in fuel poverty in Hull compared to 13.1% for England. This equated to 24,308 households in Hull.
• Unemployment, financial insecurity, and poverty including food poverty have all increased in Hull since 2020 due the the COVID-19 lockdown and resulting economic impact. This effect is likely to have a considerable cumulative impact for a considerable length of time. However, this is now compounded by dramatic increases in the prices of gas and electricity, and food, and the resulting high levels of inflation in late 2021 and in 2022. The Bank of England’s base interest rate has increased between December 2021 and August 2023 to reach a high of 5.25% not seen since January 2008. The rate decreased in August 2024 to 5%, but the increases has meant substantially higher monthly mortgage payments for those not on fixed interest rate deals. Increases in costs including a potential increased mortgage cost has affected landlords, and rents have increased significantly in the last 2-3 years. These continued high costs will further exacerbate financial vulnerability and poverty, and increase the inequalities gap further for Hull residents.
• The 2021 Census asked a number of questions which helped identify dimensions of deprivation which allow us to classify households based on education, employment, health and housing characteristics. By this measure, Hull would have the 14th worst levels of deprivation in England, with 58.8% of households being deprived in one or more of the four dimensions. In all four dimensions Hull has worse levels of deprivation than both the regional and national averages.

The Population Affected – Why Is It Important?

Poverty is not having enough money to get by on whereas deprivation refers to a more general lack of resources and opportunities. Unemployment, poor housing, lack of qualifications, debt, low income, fuel poverty, crime and many other social and environmental factors all indirectly affect the health and wellbeing of the population. Increased deprivation means that there is poorer health, but this is compounded as poor health also affects other measures such as employment and ability to improve employment, education and the person’s environment such as housing. People who live in less affluent areas are likely to have poorer access to healthcare and other services. Delays in diagnosis and treatment of medical conditions and diseases could influence survival. The circumstance people live in can make it harder to live healthily, and psychosocial stress leads to physical harm. The prevalence of smoking, poor diet, physical inactivity, stress, etc tend to be higher for people living in more deprived areas. People living in more affluent areas tend to be among the first to initiate positive health changes whereas it is more difficult to initiate positive changes with increased poverty and life pressures. For people living in more deprived areas, there are likely to be increased barriers in relation to access to health improvement and health services such as financial barriers, transport issues, access to local cheap good quality fresh fruit and vegetables, safe access to parks, flexible working arrangements to take time off work for GP and hospital appointments, etc.

Fuel poverty can also impact health. A household is considered to be fuel poor if they have required fuel costs that are above average (the national median level) and, were they to spend that amount, they would be left with a residual income below the official poverty line. Fuel poverty is distinct from general poverty: not all poor households are fuel poor, and some households would not normally be considered poor but could be pushed into fuel poverty if they have high energy costs. There is compelling evidence that the drivers of fuel poverty (low income, poor energy efficiency, and energy prices) are strongly linked to cold homes.

Evidence shows that living in cold homes is associated with poor health outcomes and an increased risk of morbidity and mortality for all age groups; furthermore, studies have shown that more than one in five (21.5%) excess winter deaths in England and Wales are attributable to the coldest quarter of housing.

The Hull Picture

Hull has high levels of both poverty and deprivation. In general, in relation to national averages, Hull has a higher unemployment rate, more poor housing, residents qualified to a lower level and higher levels of crime.

It is difficult to measure poverty and deprivation, and there are various ways poverty and deprivation can be examined in a population. At an individual level, people’s socio-economic group can be examined, but this is not available without detailed employment information. Households and families claiming benefits can be examined, but it is difficult to assess income and expenditure at an individual level. At a population level, there can be numerous ways to measure deprivation depending on what factors different people feel are important in terms of measuring and defining deprivation.

One way to examine the overall levels of deprivation at a geographical level is by using the Index of Multiple Deprivation (IMD), although this relates to the average levels of deprivation for residents living in that geographical areas, and there can be considerable variability within that area. Some people who live in the area will be better off than that average or typical level of deprivation score derived for that area whereas other people who live in that area will be worse off. As it is a measure that is produced nationally, it does mean that Hull’s relative position in terms of deprivation can be examined in relation to other places in England.

The Index of Multiple Deprivation 2019

Nationally an Index of Multiple Deprivation (IMD) score has been calculated for each of the 32,844 lower layer super output areas (LSOAs) in England which is a geographical area of around 1,500 residents. There were 166 LSOAs in Hull in 2011 (the number of LSOAs in Hull changed following the 2021 Census but the IMD has not been updated for the new LSOAs so are still based on the 2011 LSOAs).

The IMD is updated every five years or so, and the latest IMD was published in 2019. It is based on 39 indicators relating to seven domains (with different weightings for each domain):

• income (22.5%);
• employment (22.5%);
• health deprivation and disability (13.5%);
• education, skills and training (13.5%);
• crime (9.3%);
• barriers to housing and services (9.3%); and
• living environment (9.3%).

The indicators include adults and children in families supported by benefits, claimants of benefits among the working age population, attainment at primary and secondary school, school absence, entry into higher education, and working-age adults with low qualifications or who cannot speak English well, years of life lost, and measures of ill health including emotional wellbeing, recorded crime rates, road distance from key services, overcrowding, homelessness and house affordability, housing without central heating or in poor condition, air quality, and road traffic accidents. A list of the 39 indicators that make up the IMD 2019 is given within the Glossary under Tools and Resources.

The higher the IMD score the more deprived the geographical area. Based on the IMD 2019 score, Hull is the fourth most deprived local authority in England (out of 317 local authorities at the time the IMD 2019 scores were last revised). So the IMD 2019 for Hull is in the bottom 1.3% of lower-tier local authorities in England.

As the IMD is made up of 39 different indicators on different scales with different transformations, ‘shrinkage’ and weightings, it is not possible to compare the scores directly. For instance, Hull’s score is around twice as high as England but this does not mean that Hull has twice the levels of deprivation as England. The scores are relative so we can say that Hull is more deprived than England based on the scores, but not to what extent other than a comparison with other areas. The IMD examines the relative position of different geographical areas in terms of deprivation.

The changes in the deprivation levels over time as also relative to other areas. Hull was ranked as the third most deprived local authority in England based on the IMD 2015 (out of 326 local authorities in England) so in the bottom 0.9% of lower-tier local authorities in England. So Hull’s relative position has improved slightly between 2015 and 2019, but it is not known if this is because there is lower levels of deprivation or higher levels of deprivation in Hull but even higher levels of deprivation in other local authorities. The indicators are not identical for 2015 and 2019 due to changes in the data available and changes to the benefit system etc, but it is likely that some of the indicators in the IMD 2019 will have shown an improvement and others may have shown a deterioration.

It is possible to assign each of Hull’s 166 LSOAs into a group based on whether the IMD 2019 score is in the highest fifth of scores among England’s 32,844 LSOAs or whether it is in the second highest fifth of scores, etc.

More than half (54%) of Hull’s LSOAs are amongst the most deprived 20% nationally. Only four of Hull’s 166 LSOAs were in the least deprived fifth of LSOAs nationally. Hull has the fourth highest percentage of LSOAs within the most deprived 10% within England.

As Hull has so few geographical areas in the least deprived fifth nationally, local analyses generally use the local deprivation fifths. Hull’s 166 geographical areas are divided into five groups (approximately 33 areas each) from most deprived fifth to least deprived fifth.

The population-weighted average IMD scores have been produced for each of Hull’s 21 ward using the mid-year 2022 population estimates.

St Andrew’s and Docklands ward is the most deprived ward in Hull followed by Orchard Park, Central, Marfleet and North Carr wards. At the other end of the scale, Kingswood is the least deprived ward, followed by Holderness, Bricknell, Boothferry and Beverley & Newland wards.

All three Area Committee Areas include wards that are among the least deprived wards in Hull and wards that are among the most deprived wards in Hull, and as a result the levels of deprivation tend to ‘balance each other out’ and there is no Area Committee Areas that is substantially more deprived than the other two, although West Area Committee Area includes the most deprived ward (St Andrew’s & Docklands) in Hull and as a result is slightly more deprived overall compared to the North and East Area Committee Areas. The population-weighted average IMD scores for North, East and West Area Committee Areas are 39.10, 38.75 and 44.69 respectively.

Area Committee Area	Ward	IMD 2019 score	Ward rank
North	Orchard Park	60.42	2
North	Central	59.32	3
North	North Carr	49.12	5
North	West Carr	42.44	8
North	University	35.31	12
North	Avenue	34.32	13
North	Beverley & Newland	26.74	17
North	Bricknell	19.27	19
North	Kingswood	10.38	21
East	Marfleet	58.91	4
East	Longhill & Bilton Grange	46.53	7
East	Southcoates	41.37	9
East	Drypool	40.12	11
East	Ings	31.33	14
East	Sutton	30.72	15
East	Holderness	17.82	20
West	St Andrew’s & Docklands	66.19	1
West	Newington & Gipsyville	52.15	6
West	Pickering	40.18	10
West	Derringham	27.30	16
West	Boothferry	23.72	18

A briefing paper is available which gives further information on the levels of deprivation in Hull based on the Index of Multiple Deprivation 2019 and its seven domains. It includes information on the changes within Hull over time comparing the IMD 2015 with the IMD 2019.

Income Deprivation Affecting Children Index 2019

As well as the IMD 2019, an index was derived in 2019 which measured the proportion of children aged 0-15 years in income deprived families. It is a subset of the income deprivation domain and measures the proportion of the population in an area experiencing deprivation relating to low income.

At the time in 2019 (or prior to this as the data used for the IMD related to an earlier time period), 29.8% of Hull’s children aged 0-15 years lived in income deprived families, which was much higher than other local authorities across the region and England (17.1%).

More up-to-date information relating to child poverty has been published defined in a different way, and is presented below.

Income Deprivation Affecting Older People Index 2019

As well as the IMD 2019, an index was derived in 2019 which measured the proportion of people aged 60+ years who experience income deprivation. It is a subset of the income deprivation domain and measures the proportion of the population in an area experiencing deprivation relating to low income. It is based on adults aged 60+ years receiving Income Support or income-based Jobseekers Allowance or income-based Employment and Support Allowance, or Pension Credit (Guarantee) or Universal Credit (in the ‘Searching for work’, ‘No work requirements’, ‘Planning for work’, ‘Working – with requirements’ and ‘Preparing for work’ conditionality groups) or families not in receipt of these benefits but in receipt of Working Tax Credit or Child Tax Credit with an equivalised income (excluding housing benefit) below 60% of the national median before housing costs. Asylum seekers aged 60+ years were not included in the index.

The index is only available at Clinical Commissioning Group (CCG) level despite being available at and primarily used at local authority level. Whilst CCGs have subsequently been replaced by Integrated Care Boards, the geographical boundaries of CCGs and the local authority are the same, so the information presented at CCG level below will be the same as if it has been presented at local authority level (for Hull and the other CCGs in the local area).

At the time in 2019 (or prior to this as the data used for the IMD related to an earlier time period), 25.7% of Hull’s adults aged 60+ years were experiencing income deprivation, which was much higher than other geographical areas within Humber and North Yorkshire, and England (14.2%).

Dimensions of Deprivation from the 2021 Census

The 2021 Census asked a number of questions which helped identify dimensions of deprivation which allow us to classify households based on four selected household characteristics. These four characteristics are:

• Education – A household is classified as deprived in the education dimension if no one has at least level 2 education and no one aged 16 to 18 years is a full-time student;
• Employment – A household is classified as deprived in the employment dimension if any member, not a full-time student, is either unemployed or disabled;
• Health – A household is classified as deprived in the health dimension if any person in the household has general health that is bad or very bad or is identified as disabled; and
• Housing – A household is classified as deprived in the housing dimension if the household’s accommodation is either overcrowded, in a shared dwelling, or has no central heating.

Household deprivation	Hull N	Hull %	Y&H %	England %
Household is not deprived in any dimension	47,556	41.2	46.8	48.4
Household is deprived in one dimension	39,375	34.1	33.7	33.5
Household is deprived in two dimensions	21,788	18.9	15.1	14.2
Household is deprived in three dimensions	6,452	5.6	4.1	3.7
Household is deprived in all four dimensions	301	0.3	0.2	0.2

By this measure, Hull would have the 14th worst levels of deprivation in England, with 58.8% of households being deprived in one or more of the four dimensions (the worst upper tier local authority being Barking and Dagenham with 62.4% and the best being Wokingham with 38.5%). Deprivation in one dimension would see Hull in 50th place (34.1%), in two dimensions 7th place (18.9%), three dimensions 19th place (5.6%) and in four dimensions 63rd place (0.3%). In all dimensions Hull is worse than both the regional and national averages.

The data is available at lower layer super output area (geographical level) which allows us to map the dimensions across the city.

Further information in relation to housing characteristics such as tenure which relate to poverty and deprivation can be found under Housing under Health and Wellbeing Influences.

Multiple Unmet Need

From the Hard Edges report, Hull is ranked as having high levels of multiple unmet need being the sixth highest for ‘severe and multiple disadvantage’ of upper tier or ‘social services’ local authorities. Their report explored the problems faced by adults involved in the homelessness, substance use and criminal justice systems. Mental ill-health was a common complicating factor and poverty was an almost universal complicating factor.

The table below gives the ratio of the prevalence for housing, offenders, and drugs and alcohol for 2010/11 as well as a combined measure for these indicators. Each local authority is compared to England for 2010/11 which has a fixed value of 100, and the local authorities which have the highest levels of multiple unmet need have between two and three times the average levels of multiple unmet need.

The information is based on summarising information from a number of datasets which record activity in relation to:

• Housing – Supporting People (client record and outcomes for short-term services) – a housing-related support services dataset that includes most publicly-funded single homelessness services and covers most upper-tier (social services) local authorities in England.
• Offenders – Offender Assessment System – this dataset covers a substantial part of the prison population and also those undertaking community service punishments.
• NDTMS – National Drug Treatment Monitoring System – a national dataset that monitors client journeys through substance misuse services, a subject of this dataset covers alcohol services.

Hull has 2.2 times the number of people with multiple unmet need compared to average for England. The numbers in Hull are slightly higher than this for housing, but slightly lower for offenders. Neighbouring East Riding of Yorkshire is joint fifth in terms of the ranking as a local authority with the lowest levels of multiple unmet need using this definition.

Local Authority	Supporting People (Housing)	Offender Assessment System	NDTMS	Combined
Blackpool	378	298	244	306
Middlesbrough	152	306	387	281
Liverpool	265	200	249	238
Rochdale	310	183	184	226
Manchester	245	212	217	225
Hull	251	191	232	224
Bournemouth	266	177	218	220
Nottingham	260	199	181	213
Stoke-on-Trent	193	215	224	210
Newcastle	271	186	167	208
England	100	100	100	100
Newbury	57	47	31	45
Surrey	38	46	49	45
Richmond Upon Thames	18	51	65	44
Harrow	19	46	59	41
Buckinghamshire	23	44	43	37
East Riding of Yorkshire	34	38	38	37
Windsor and Maidenhead	3	49	58	36
South Gloucestershire	25	38	44	36
Central Bedfordshire	20	36		28
Wokingham	10	31	23	21

A needs assessment of Multiple Unmet Needs in Hull was completed in 2023 and published in early 2024. Modelling of information from the Hard Edges report has been used to produce estimates for Hull, although this predominantly relates to men when examining homelessness, involvement with the criminal justice system and substance use. A recent report published in July 2023 by Changing Lives & Agenda Alliance found that examining these three factors together with removal of children into care, mental health and domestic abuse changed the focus to women. These reports and local data are being used to estimate and model the numbers in Hull with multiple unmet need as part of the needs assessment. However, in practice, due to lack of information and datasets examining multiple needs, the some of the analysis was based on examining different factors separately, but the report included detailed information on multiple needs experienced by the subset of individuals currently in substance treatment services. Qualitative research involving interviews and focus groups with service providers and clients are also included within the local report. The needs assessment is a first step in examining multiple unmet needs in Hull, and has revealed a number of key areas for focus and gaps in provision or gaps in data and knowledge.

Child Poverty

The percentage of children (under 16s) living in absolute or relative low income families is given within The Office for Health Improvement & Disparities’ Fingertips.

A family must have claimed one or more of Universal Credit, Tax Credits or Housing Benefit at any point in the year to be classed as low income based on the definitions for absolute and relative low income.

Absolute low income is defined as a family in low income before housing costs in the reference year in comparison with incomes in 2010/11. Absolute low income takes the 60% of average (median) income threshold from 2010/11 and then fixes this in real terms (i.e. in line with inflation). This is designed to assess how low incomes are faring with reference to inflation. It measures the number and percentage of individuals who have incomes below this threshold. The percentage of individuals in absolute low income will decrease if individuals with lower incomes see their incomes rise by more than inflation.

Equivalised income is income before housing costs and includes contributions from earnings, state support and pensions. Equivalisation adjusts income for family size and composition, taking an adult couple with no children as the reference point. Relative low income is defined as a family in a low income before housing costs in the reference year. Relative low income sets a threshold as 60% of the UK average (median) income and moves each year as average income changes. It is used to measure the number and percentage of individuals who have income below this threshold. The percentage of individuals in relative low income will decrease if: (i) average (median) income stays the same or rises, and individuals with lower incomes see their incomes rise more than the average; or (ii) average (median) income fall, and individuals with lower incomes see their incomes fall less than average incomes.

In 2022/23, 23.1% of under 16s lived in absolute low income families and 28.5% of under 16s lived in relative low income families in Hull which was much higher than England (15.6% and 19.8% respectively).

The percentage of children living in absolute low income families in Hull is ranked 19th highest of the 151 upper-tier local authorities and ranked 26th highest out of the 294 lower-tier local authorities in England. The percentage ranges from 4.2% to 35.7% across the upper-tier and from 3.9% to 35.8% across the lower-tier local authorities.

The percentage of children living in relative low income families in Hull is ranked 21sth highest of the 151 upper-tier local authorities and ranked 27th highest out of the 294 lower-tier local authorities in England. The percentage ranges from 5.2% to 42.2% across the upper-tier and from 5.2% to 43.28% across the lower-tier local authorities.

It was estimated in 2022/23 that 12,406 children aged under 16 years in Hull were living in absolute low income families.

In 2022/23, it is estimated that 15,321 children aged under 16 years in Hull lived in relative low income families.

Free School Meals and Food Insecurity

Children in state-funded schools in England are entitled to received free school meals if a parent or carer were in receipt of any of the following benefits:

• Income Support
• Income-based Jobseekers Allowance
• Income-related Employment and Support Allowance
• Support under Part VI of the Immigration and Asylum Act 1999
• the guarantee element of the State Pension Credit
• Child Tax Credit (provided they were not also entitled to Working Tax Credit and had an annual gross income of no more than £16,190, as assessed by Her Majesty’s Revenue and Customs)
• Working Tax Credit run-on – paid for four weeks after having stopped being qualified for Working Tax Credit
• Universal Credit – if applied on or after 1 April 2018 and the household income is less than £7,400 a year (after tax and not including any benefits)

Pupils in families with no recourse to public funds can also be eligible for free school meals. Since 1 April 2018, transitional protections have been in place which will continue during the roll out of Universal Credit. This has meant that pupils eligible for free school meals on or after 1 April 2018 retain their free school meal eligibility even if their circumstances change. Prior to the pandemic, this had been the main driver in the increase in the proportion of pupils eligible for free school meals as pupils continue to become eligible but fewer pupils stop being eligible. Any pupil gaining eligibility for free school meals after 1 April 2018 will be protected against losing free school meals until March 2025. After March 2025, any existing claimants that no longer meet the eligibility criteria will continue to receive free school meals until the end of their current phase of education (i.e. primary or secondary).

The percentage of school children eligible for free school meals is given on Fingertips and illustrates that almost one-third of school children in Hull are eligible for free school meals in 2022/23 compared to under one-quarter for England.

Between 2015/16 and 2018/19, the numbers of pupils eligible for free school meals had increased slightly but the prevalence had only increased by 0.9%. However, the percentage increased during the 2019/20 school year due to the COVID-19 pandemic (with lockdowns commencing at the end of March 2020) by 16% and has continued to increase for both 2021/22 and 2022/23, but by smaller margins (around 5% each year).

Over 43,100 pupils attended Hull schools in 2022/23, and 14,182 of them are eligible for free school meals.

The increase in eligibility has also increased across England and the region at a relatively similar rate to Hull.

Further information relating to children eligible for free school meals can be found under Schools, Education and Qualifications and information relating to food insecurity (concerns over being able to provide food for the family) can be found under Financial Resilience both under Health and Wellbeing Influences.

Fuel Poverty

A household is considered to be fuel poor if they are living in a property with a fuel poverty energy efficiency rating of band D or below and when they spend the required amount to heat their home, they are left with a residual income below the official poverty line. This is referred to the ‘low income, low energy efficiency’ methodology. The ‘residual income’ is the disposable income after housing and energy needs. There are three important elements in determining whether a household is fuel poor: household income, household energy requirements and fuel prices.

For 2022, it was estimated that 20.4% of households experienced fuel poverty based on the ‘low income, low energy efficiency’ methodology which was considerably higher than England (13.1%).

This equated to 24,308 households in Hull for 2022 who were in fuel poverty.

COVID-19 and the Cost of Living Crisis

COVID-19 Pandemic

Some of the information relating to deprivation and poverty predates March 2020 and thus predates the COVID-19 pandemic. There were many low income households in Hull working on zero hour contracts or on furlough during the COVID-19 pandemic and this resulted in income loss for many households in Hull.

Increase to Inflation Rate and Energy and Food Costs

Furthermore, at the end of 2021 and in 2022, the cost of gas and electricity increased dramatically, and these increases have continued into 2023. The cost of food and other products also increased, as well as the overall inflation figure for the the UK. In April 2021, the annual inflation rate was 1.5% but has increased since then to a high of 11.1% in October 2022. This was the highest inflation rate recorded since March 1992. Between October 2022 and December 2023, the inflation rate has decreased considerably to 4.0% but is still twice as high as the national target for inflation, although the inflation rate reached the target of 2% for the first time when figures were released in June 2024. Furthermore, existing high rate of inflation over the last couple of years have meant that the overall prices have remained high. Whilst salaries and some benefits have increased over the last year for many, in particular those working in the private sector, the inflation rate is considerably higher than those increases meaning that salaries and benefits have reduced in real terms (after adjusting for inflation).

For those not on fixed price energy contracts, the cost of energy prices started to increase in 2021. Whilst the government put a cap (maximum) on the unit cost of electricity and gas through the Energy Price Guarantee, the cap was considerably higher than the prices in 2020 and early 2021. This meant that energy bills were substantially higher than those at the beginning in 2021 for all households and businesses (frequently two or three times higher). The government’s Energy Price Guarantee is currently in place until 2024, but the original energy price cap set by Ofgem has dropped below the Energy Price Guarantee which means that households pay the Ofgem energy price cap rate instead. During winter 2022/23, all households received financial support from the government in relation to their energy costs, with lower income households receiving more funding. However, this government funding only covers a proportion of the price increases.

Increase on Bank of England’s Base Interest Rate and Impact on the Cost of Mortgages and Rent

Furthermore, between 2009 and 2020, the Bank of England’s interest rate had been below 1%, and fell to a low of 0.1% between May 2020 and December 2021. With the increasing inflationary pressures on the economy as a way to attempt to reduce the inflation rate, the Bank of England started to increase the base interest rate in December 2021 with increases every six weeks or so when they meet to decide the base rate until August 2023. Since August 2023, the base rate has remained at 5.25% with January 2008 being the last time the base rate was this high, although it has fallen to 5% in August 2024.

For home-owners paying a mortgage who are not on a fixed-interest rate deal, their monthly mortgage payments have increased dramatically, by hundreds of pounds a month. This may have also affected landlords, and household rents have also increased in the last 2-3 years.

Exacerbating Impact

Households in Hull were already struggling financially following in the COVID-19 pandemic which increased the inequalities gap in Hull. The current and future impact on energy, food, mortgage and rents, and other costs will only magnify this further and further increase the significant inequalities that already exist when comparing Hull with other places in England, as well as exacerbating the inequalities within Hull.

Further information relating to the increases in the rental properties and mortgage and landlord repossessions can be found within Housing and Households under Health and Wellbeing Influences.

Further information is given within Financial Resilience under Health and Wellbeing Influences from Citizens Advice within their Cost of Living Crisis Dashboard.

From the Health Foundation’s report into children and young people’s mental health and COVID-19 and the road ahead, in 2021, children and adolescents with a probable mental health condition were twice as likely to live in households newly falling behind on bills (12.8%, compared with 6.7% of 6 to 16-year-olds without a mental health condition).

Strategic Need and Service Provision

Improving education, training, skills and the labour market are all key drivers to reducing poverty and deprivation.

Increasing secure employment was a key strategic need, strongly identified in  Hull’s City Plan which was launched in the summer 2013. The aim was to create 7,500 jobs for local people over the next 10 years sits at the heart of the developing ‘energy estuary’, making Hull the UK hub for renewable energy industries and investment due to its location. It is necessary to ensure that local residents have the health, skills, education and training required to take up these employment opportunities. Since the launch, Hull has seen significant economic benefit with thousands of jobs being created for local people and unprecedented levels of investment. Further information can be found at https://cityplanhull.co.uk.

It is necessary to support the ‘Fuel, Food and Finance’ anti-poverty initiatives that help people minimise the health impact of welfare reform and cost of living rises (e.g. initiatives that enable people to prevent, manage or recover from debt), and support the Living Wage. Suitable affordable housing is also required.

Benefit can be obtained from projects in the community that raise resilience, confidence, self-worth and self-esteem to raise aspirations for life. Children, young people and adults should have the best life opportunities in terms of education, training and employment so that they have financial stability. This will improve health and wellbeing.

The most vulnerable citizens should be identified so that their specific needs can be addressed by working with them, and it needs to be acknowledgement that in order to help people improve their health and wellbeing, needs unrelated to health might need to be addressed prior to health needs as people generally need to be in a stable environment before they can change their lifestyle and behaviour and improve their health and wellbeing.

People’s circumstances can often be improved by early help, and any early help and intervention for all families should be timely, accessible and appropriate for their circumstances. Hull’s Early Help and Prevention offer is focused on a whole family approach which aims to identify individuals and families with problems and brings together different services and agencies to collectively look at what support is needed and then work together to deliver the required support in a coordinated way. The framework outlines the approach to ensure that collaboration and alignment of services, and that early help may be ‘early in life or at the earliest opportunity’ which is also part of the day job, helpful, non-stigmatising, preventative, targeted and tailored.

The Social Prescribing Service aims to help people feel more linked in with their local communities and provide advice and support on a range of issues including money and benefits.

The impact of the COVID-19 pandemic have adversely affected the poorest, most deprived areas of the country the most. This is the case for Hull. The educational and training opportunities, labour market, employment opportunities and circumstances of people in Hull as well as levels of poverty, debt and financial insecurity were already considerably worse than most local authorities in England prior to COVID-19, and the consequences of COVID-19 will have widened the inequalities gap in relation to education, employment, the labour market, poverty, debt and financial insecurity. This has now been compounded by the marked increases in energy costs which has impacted on food and other costs increasing the rate of inflation to the highest rate it has been in the UK for 30 years. Furthermore, the prices are anticipated to increase even further.

Resources

Index of Multiple Deprivation 2019: https://www.gov.uk/government/statistics/english-indices-of-deprivation-2019

The Office for Health Improvement & Disparities’ Fingertips: https://fingertips.phe.org.uk/

Wilkinson P, Landon M, Armstrong B, Stevenson S, Pattenden S, McKee M and Fletcher T (2001) Cold Comfort: The Social and Environmental Determinants of Excess Winter Deaths in England, 1986 to 96. Bristol: The Policy Press.

University College London Institute of Health Equity (2011). The Health Impacts of Cold Homes and Fuel Poverty.

Bramley G, Fitzpatrick S, Edwards J, Ford D, Johnsen S, Sosenko F and Watkins D. Hard Edges: mapping severe and multiple disadvantage in England. Heriot-Watt University, 2015. https://lankellychase.org.uk/publication/hard-edges/

Changing Lives & Agenda Alliance. Dismantling Disadvantage: Levelling up public services for women with multiple unmet needs, 2023. www.agendaalliance.org/news/transforming-services-final-report-launch-something-needs-to-change/

Trading Economics. United Kingdom Inflation Rate. https://tradingeconomics.com/united-kingdom/inflation-cpi

Bank of England. Interest Rates and Bank Rate. www.bankofengland.co.uk/monetary-policy/the-interest-rate-bank-rate

Official Labour Market Statistics (nomis). Annual Population Survey – Households by combined economic activity status. https://www.nomisweb.co.uk/

Hull’s Early Help and Prevention Strategy 2021-25. https://www.hull.gov.uk/downloads/file/1726/Hull_Early_Help_and_Prevention_Strategy_2021_25.pdf

Updates

This page was last updated / checked on 10 October 2024.

This page is due to be updated / checked in February 2025.