Poverty dynamics in Rural Britain 1991–2008: Did Labour's social policy reforms make a difference?: Fid-Bau Portal

Poverty dynamics in Rural Britain 1991–2008: Did Labour's social policy reforms make a difference?

Vera-Toscano, Esperanza / Shucksmith, Mark / Brown, David L.

Abstract This paper uses data from the British Household Panel Survey (BHPS) to examine whether poverty dynamics changed in rural and urban Britain between 1991 and 2008, prior to the economic crisis. In addition to descriptive statistics, poverty exit and re-entry hazard models are estimated to assess the effect of household and personal characteristics, place of residence and participation in social policy programmes (benefits) on the time spent in poverty. Particular attention is paid to the election of the ‘New Labour’ government in 1997 and the impact of its social policy reforms. The analysis reveals that rural poverty is not a rare experience with half the population of rural Britain experiencing poverty at some point over this period. While the risk of poverty affected a much higher proportion of the rural population than previously thought, both rural and urban poverty fell from 1999 when Labour began to introduce its spending programme and reforms, with rural poverty falling further than urban. Our analysis suggests these policy reforms played an important role in rural dwellers' increasing mobility out of poverty and in decreasing mobility back into poverty during 1999–2007.

Highlights • This paper examines changes in poverty dynamics in rural Britain during 1991–2008. • Half Britain's rural population experienced poverty at least once in this period. • Rural poverty fell faster than urban after Labour introduced social policy reforms. • Analysis suggests these policy reforms were instrumental in reducing rural poverty. • The findings challenge neglect of rural poverty in social policy and rural policy.