Overall 28 per cent of people in the capital are living in poverty, 7 percentage points higher than the rest of England.
And the situation is worse for young adults, with 15 to 25 per cent of 16 to 24 year olds unemployed.
And of the 20 English local authorities with the highest levels of child poverty 7 are in London, according to the report out today by Trust for London.
Worryingly, the study found that a quarter of households in London rely on housing benefit to meet their housing costs, compared to a fifth in England as a whole. 40 per cent of those claiming housing benefit are in work.
Average monthly rents are £1,300 in inner London, compared to £950 in outer London and £475 in England.
The report adds that the level of rents combined with the restrictions on housing benefit means that “large parts of London are now unaffordable to low-income households”.
“The outlook for poverty across the country is worrying as a result of some of the welfare reforms. But in London, it is the reforms to housing benefit, which will cause the real problems,” the report adds.
Trust for London chief executive Bharat Mehta said that the fact London’s economy performed better than the rest of the country “obscures the fact it has the highest poverty rate”.
“To tackle London’s poverty and inequality policymakers must focus on solutions such as building more affordable housing and encouraging employers to pay a Living Wage,” he said.
And author of the report Hannah Aldridge said that London’s low income households were in a “precarious position”.
“The benefit restrictions that have been introduced take no account of the high cost of renting in London. Most of London, and not just its fashionable bits, is now unaffordable for households in the private rented sector and without work. If poverty in London falls it may well be because the poor are being forced out.”
Left Foot Forward
