Deprivation and poverty

Deprivation and poverty in Southampton

Economic growth in Southampton was relatively healthy up until the pandemic, with Southampton achieving significant economic growth up until this point, in line with the affluent South. However, the city’s characteristics relating to poverty and deprivation continue to present challenges more in common with other urban areas across the country with high levels of deprivation.

The Index of Multiple Deprivation (IMD 2019) illustrates how Southampton continues to be a relatively deprived city. Based on average deprivation rank of its neighbourhoods (LSOAs), Southampton is now ranked 55^th (where 1 is the most deprived) out of 317 local authorities: more deprived than the comparator cities of Bristol (82^nd), Leeds (92^nd) and Sheffield (93^rd). Southampton has 19 LSOAs within the 10% most deprived in England and one in the 10% least deprived. More information on the Indices of Multiple Deprivation can be found below.

The 2008 economic recession and welfare reforms including the introduction of Universal Credit had a marked impact on Southampton and its residents. In practice, the direct impact of the welfare reforms is not shared equally; they impact hardest on some of our most deprived households, with some households affected by several changes.

The coronavirus pandemic, unprecedented levels of inflation and the ‘cost of living crisis’ have the capacity to exacerbate existing levels of poverty and deprivation in Southampton, whilst bringing about new challenges. More information is available on the Cost of Living pages.

Claimant count data is published monthly and allows for the proportion of adults claiming out of work benefits to be monitored in detail. Locally and nationally the number of adults claiming out of work benefits has stagnated over the last year. As of April 2024, 4.4% (7,395) of the working age population were claiming out of work benefits in Southampton; an increase of +470 claimants (+6.8%) since April 2023 (4.1%). Whilst progress has been made in recovering from the COVID-19 pandemic, Southampton is yet to return to the pre-pandemic baseline (less than 3.5% in January to March 2020). This could possibly be linked to recent financial pressures and economic uncertainty.

In 2023, the median weekly gross earnings for a full-time employee, resident in Southampton was estimated to be £652, which is below the England average of £683. In addition, those working in the city earn more than those resident in city (£52 per week gap for full time workers), suggesting the best paid jobs in Southampton are being undertaken by workers commuting into the city. More information on wages, employment and Southampton’s economy can be found in the Southampton Economic Assessment.

Deprivation and inequalities between residents and neighbourhoods in Southampton are significant and continue to be a driver for crime and poor health outcomes in Southampton. In addition, key outcomes for children and young people in Southampton continue to be poorer than the national average, with outcomes significantly poorer (and starting earlier in life) for those residents living in the most deprived areas of the city compared to those living in the least deprived areas. More information on the variation in outcomes for Southampton residents can be found on the inequality profiles and health inequalities pages.

Index of Multiple Deprivation (IMD)

The Department for Levelling Up, Housing & Communities (DLUHC) published the latest Indices of Deprivation (IoD) in 2019. The Index of Multiple Deprivation (IMD 2019) provides a relative ranking of areas across the country according to their level of deprivation and is the primary source of information on deprivation in England. The IMD measures deprivation at neighbourhood level known as Lower Layer Super Output Areas (LSOAs), which contain approximately 1,500 people. Each of the 32,844 LSOAs in England is ranked by their level of deprivation and is then split into 10 equal groups known as deciles.

The IMD (2019) is based on the concept that deprivation consists of more than just poverty. Poverty is not having enough money to get by on whereas deprivation refers to a general lack of resources and opportunities. The IMD brings together a range of indicators, which cover specific aspects of deprivation. These indicators are aggregated into seven domains, which are then weighted and combined to create the overall IMD. The majority of the data underpinning the IMD 2019 is from 2015/16, although some is more recent. The 7 domains are income, employment, education, skills and training, health, crime, barriers to housing and services and finally living environment. In addition, the IMD also has two supplementary indices; income deprivation affecting children (IDACI) and income deprivation affecting older people (IDAOPI).

Overall, there has been very little change in relative deprivation levels in Southampton compared to other local authorities in England since the last IMD in 2015, with the Southampton remaining a relatively deprived city. Some of the main findings from the IMD (2019) are outlined below:

• Of the 317 Local Authorities in England, Southampton is ranked 55^th (previously 54^th) most deprived based on average rank of LSOAs and 61^st (previously 67^th) most deprived based on average score of LSOAs

• The fact that Southampton appears to be more deprived based on the average rank measure (55^th nationally and 2^nd amongst comparators), illustrates how Southampton is more uniformly deprived rather than being highly polarised (i.e. extremes of deprivation)

• Southampton has 19 LSOAs within the 10% most deprived in England (same as in 2015) and one LSOA in the 10% least deprived in England (previously zero in 2015)

• Around 12% of Southampton’s population live in neighbourhoods within the 10% most deprived nationally; this rises to 18% for the under 18 population, suggesting deprivation disproportionately impacts upon young people in the city

• Over 45% of Southampton’s population live in neighbourhoods within the 30% most deprived nationally (around 117,000 people)

• At neighbourhood level, approximately half of the LSOAs in Southampton have become more deprived (77/148; 52%) since 2015, whilst half have become less deprived

• The five most deprived neighbourhoods in Southampton are in Bargate (Golden Grove), Weston (International Way), Weston (Kingsclere Avenue), Thornhill (Lydgate Road) and Millbrook (Lockerley Crescent)

• Southampton is ranked 3^rd worst in the country for crime deprivation and is in the worst 20% of local authorities for 5 other deprivation domains

More information on deprivation in Southampton can be found in a summary slide set, data compendium and series of maps for each deprivation domain, which can be downloaded from the resources section at the bottom of the page. In addition, the IMD (2015) and IMD (2019) data can also be visualised and compared in an interactive map format using the Indices of Deprivation 2019 Explorer produced by DLUHC below.

Deprivation and health

The relationship between deprivation and health is well documented (Marmot, 2010). The report, how does money influence health from the Joseph Rowntree Foundation (JFR) identified four main ways in which income in particular affects people’s wellbeing:

• Material: Money buys goods and services that improve health. The more money families have, the better the goods they can buy

• Psychosocial: Managing on a low income is stressful. Comparing oneself to others and feeling at the bottom of the social ladder can be distressing, which can lead to biochemical changes in the body, eventually causing ill health

• Behavioural: For various reasons, people on low incomes are more likely to adopt unhealthy behaviours (smoking and drinking, for example), while those on higher incomes are more able to afford healthier lifestyles

• Reverse causation (poor health leads to low income): Health may affect income by preventing people from taking paid employment. Childhood health may also affect educational outcomes, limiting job opportunities and potential earnings

There are significant health inequalities in Southampton, with those living in the most deprived areas of the city having poorer health outcomes compared to those living in the least deprived areas. For example, from 2019 to 2021, males living in the most deprived areas of the city on average live 7.8 years less than those living in the least deprived areas, whilst females live 3.4 years less on average. More information on the variation in health outcomes for Southampton residents can be found on the health inequalities page.

Child poverty

The Marmot Review (2010) suggests there is evidence to show that childhood poverty leads to premature mortality and poor health outcomes for adults. There is also a wide variety of evidence to show, that children who live in poverty are exposed to a range of risks that can have a serious impact on their mental health. Reducing the numbers of children who experience poverty should improve these adult health outcomes and increase healthy life expectancy.

In 2020/21, figures on households with below average income, from the Department for Work and Pensions, suggest that there are 3.3 million (23%) children under 16 in the UK living in absolute poverty (after housing costs). Applying this percentage to Southampton, it is estimated that there could be 10,000 children living in absolute low income in the city.

Figures on children living in low-income families are also produced by the Department for Work and Pensions. In 2021/22, 25% of children in Southampton aged under 16 are living in relative low income families, significantly higher than the national average (23.8%).

The IMD (2019) includes a supplementary index of Income Deprivation Affecting Children (IDACI). The IDACI measures the proportion of children in each neighbourhood (LSOA) that live in families that are income deprived (i.e. in receipt of Income Support, income-based Jobseeker’s Allowance, Pension Credit (Guarantee) or Child Tax Credit below a given threshold). This shows that there is significant variation across the city, with the proportion of children who are income deprived ranging from less than 5% (LSOAs in Portswood, Shirley and Bassett) to over 45% (LSOAs in Redbridge and Woolston). A map of income deprivation affecting children at neighbourhood level can be seen opposite. All the IMD 2019 deprivation domain maps can be downloaded from the resources section below.

Children living in poverty and deprivation are more likely to have poorer outcomes in adulthood, particularly those relating to health, education, employment and crime. It has also been found that children and families from the poorest 20% of household incomes are three times more likely to have common mental health problems than those in the richest 20%.

The latest data on those pupils who are eligible for free school meals from Department for Education (DfE) school census (2022/23), shows that 34% of all pupils, in state funded schools in Southampton, were known to be eligible for free school meals, which is significantly higher than the national average (23.8%).

Local comparator and trend data on free school meals and other child poverty indicators can be explored further using the Office for Health Improvement and Disparities (OHID) fingertips tool below.

Fuel poverty

In 2020, figures showed that 13.2% of households in England (3.16 million households) were living in fuel poverty. The proportion living in fuel poverty in Southampton is slightly lower at 12.5%, equating to about 13,400 households in the city. In comparison, the proportion in Hampshire is just 7.4%. This is based on the Low Income Low Energy Efficiency (LILEE) definition, where a fuel poor household is one in which has a fuel poverty energy efficiency rating (FPEER) of band D or below and were to spend their modelled energy costs, they would be left with a residual income below the official poverty line.

There has been an increase in the number of households in fuel poverty between 2019 and 2020. In Southampton, the increase is approximately 1,400 households or 1.0 percentage points. In comparison, the England figure has remained relatively stable over the same period. As shown by the map, levels of fuel poverty vary considerably across Southampton.