Poverty costs everyone a lot of money – from the families themselves via the poverty premium, to health and social care services, schools and housing. In fact, the impact of families living in poverty affects every part of the public sector, taking up 25% of health spending, more than a third of the housing budget and 60% of children’s social care expenditure.
A 2016 report by Heriot Watt and Loughborough Universities found that dealing with the consequences of poverty costs the public purse £78 billion a year – that’s £1,200 for every person in the UK. While it falls to the whole of society to take action to address the underlying causes, it is also the duty of each public service to manage the consequences of poverty as effectively and efficiently as possible. This means reducing its impact on families while also finding ways to reduce the impact on each service’s budget, allowing it to free valuable funds to help more people.
The allure of digitising services
The squeeze on public finances has run parallel to the boom in technology, with every organisation now searching for digital solutions to help improve the service they provide and save money at the same time. Unsurprisingly, each public service is focused on solving its own problems, but this has led to the mistaken impression that each problem is unique to them.
The NHS is continually exploring ways in which new technology can benefit its patients. Telehealth, for example, involves the use of health technology to monitor patients’ conditions remotely, meaning they are no longer required to stay in hospital and can live more independent lives at home. An NHS telehealth trial in Kent was found to reduce hospital admissions by 50% for the disease that was monitored, while home visits were also cut by 80%, resulting in savings of £1.2 million.
In a previous post, we mentioned a number of ways in which social housing providers are looking to digitise, including using artificial intelligence and big data to improve services to their tenants. Similarly, local authorities are searching for new ways to engage residents through digital services, reducing expenditure while allowing users to access adult and children’s social care services via apps, online portals and digital self-assessment forms.
The problem of digital exclusion
The focus on digital helps to cut costs and offers users the chance to engage on their own terms, but organisations are relying on the assumption that their users will have the means to access digital services. This is far less likely when dealing with families in poverty: Ofcom figures show that working-age people living in the poorest households are three times as likely to not have internet access compared to the national average. This leaves a sizeable portion of deprived service users at a further disadvantage: unable to benefit from digital services with alternative options dwindling as the channel shift picks up pace.
The point here is that digital exclusion affects every public organisation that has a duty of care to its service users. More often than not the responsibility for ensuring everyone can access online services falls to landlords or an individual department within a local authority, but this needs to change.
Instead of focusing on solving universal problems such as digital exclusion in silos, public sector organisations will achieve a far greater impact by pooling their respective resources, expertise and capabilities.
The causes of poverty cannot be addressed by a single charity, organisation, business or community, and neither can the consequences.