Common use of Poverty Clause in Contracts

Poverty. 10.1 Poverty is a lack of income (or material possessions) to such a level that it is not considered acceptable by society. Officially a household is considered to be in poverty if its income (after taxes and housing costs) is less than 60% of the average (median) income nationally. In 2007-08 (the latest date for which local authority estimates are available) this was equal to £199 per week for a couple with no children. In the same year an estimated 19% of households (14,500 households) in Herefordshire had income below this level9. 10.2 Of those people classed as living in poverty: • 22% are married families • 22% are working age adults (16-59 years) • 46% are lone parents households • 29% are under 16 years old • 16% are older people 10.3 The Borders Broadband survey shows that cost is a barrier to going on line – this includes monthly subscription charges, purchase of equipment and connection charges. 10.4 Poverty can be a symptom of several circumstances – low wages (Herefordshire’s weekly wage is £383.30 compared to £456.4 nationally); unemployment which has increased during the recession; under employment with the proportion of people working part-time is greater in Herefordshire (14%) than nationally (12%)10. 10.5 Also, there are links between poverty, health outcomes and educational attainment when comparing the most and least deprived neighbourhoods in Herefordshire11. 10.6 Whilst the greatest numbers of households in poverty live in urban areas, some households in rural areas also live in poverty. There are also other financial pressures associated with living in rural areas that, whilst not relevant to the official definition of poverty, do make it harder for residents of rural areas. Additional costs associated with transport and domestic heating mean some rural households have to spend more to achieve the same standards of living as equivalent households living in urban areas12. 9 State of Herefordshire Report, 2011 11 Herefordshire Joint Strategic Needs Assessment 2010 12 A Minimum Income Standard for Rural Households, Rowntree Foundations, 2010 10.7 Intervention