Challenges facing disadvantaged and deprived communities

Graeme Atherton; Laura Webb

Overview

Each nation in the UK has its own government-led approach to measuring deprivation that encompasses measures of income, employment, health, education, crime and housing.[1][2][3][4][5] Data for England mostly from 2015-16,[6]published in 2019, showed that deprived communities are dispersed. 344 out of 533 constituencies in England contained at least one small area that was among the 10% most deprived in England.[7] However, deprived areas are also concentrated in cities and coastal areas. The geography of deprivation in Scotland, Wales and Northern Ireland is similarly complex. Recent measurements highlight concentrations of deprivation in some cities, some rural/ border areas, and some coastal areas.[8][9][10][11]

There are also wider definitions of deprivation including at the community level. Experts point to a lack of ‘social infrastructure’, such as access to services and community resources including health services, shops and leisure facilities, as a feature of deprived communities in the UK.[12][13] Deprived areas often lack transport links which can impact the ability of residents to reach employment, education, services and facilities.[14][15]

The impact of living in a deprived community can be far-reaching. Research from the Social Mobility Commission shows that growing up in a more disadvantaged area can have a negative impact on future educational outcomes and earnings.[16]

Researchers have noted regional inequalities from at least the early twentieth century when a gap began to grow between London (and the South-East) and the other parts of the UK.[17][18] It is now accepted by many stakeholders that the UK has wider regional inequalities than many other industrial economies.[19][20][21]

In 2010, the government introduced a policy of austerity, which sought to reduce financial deficits through measures such as funding cuts, alongside some tax increases. Researchers have highlighted the differing impact of austerity between regions.[22][23] Research from the Joseph Roundtree Foundation in 2015 showed that local authorities with more deprived populations had been most impacted by the cuts.[24]

Between 2019 and 2024, the government placed a focus on addressing regional inequalities and supporting deprived communities through its “levelling up” agenda.[25] Levelling up aimed to grow the economy, create jobs and support communities through 12 different missions.[26] The Levelling Up and Regeneration Bill, passed in 2023, stated that parliament should receive a report from the government on the progress made toward achieving the levelling up missions each year.[27] Levelling up funding was allocated through a range of funding streams.[28]

Between 2019 and 2024, over £13bn was invested in levelling up through these streams.[29][30] This investment mainly supported physical regeneration projects across the UK, including improving transport networks, and leisure and community facilities.[31] For example, the Long Term Plan for Towns was launched in October 2023 to invest £1.1bn in 55 towns, with each town expected to receive funding and support of £20 million and be able to develop plans that met local priorities.[32]

As part of levelling up, power was devolved to local communities to make decisions around provision in some areas, such as transport. The percentage of the population living in a place covered by a devolution deal in January 2024 was 60%.[33]

Challenges and opportunities

Researchers have noted that some of the most deprived communities did not receive any levelling up related funding.[34]

In March 2024, the Public Accounts Committee noted that, as of September 2023, local authorities had been able to spend just over 10% of the promised funding from the government’s three significant levelling up funds supporting local places, with many projects taking longer than expected to begin.[35] In 2023, a report by the National Audit Office noted that progress delivering levelling up projects had been slow.[36]

Most levelling up funding for communities was subject to competitive bidding by local authorities. Some stakeholders, including in local government, and researchers, raised concerns about this approach,[37][38] for example, because of the resources involved in making the bids.[39] However, some funding streams took a different approach. The UK Shared Prosperity Fund, for example, was introduced to replace the structural funds that were previously available to the UK through being part of the European Union. It provided funding for local investment. This was allocated to local areas rather than distributed through competitive bidding.

In 2024, the Local Government Association noted that councils in England faced a £4 billion gap in funding for local services in 2024-2025.[40] Deprived areas tend to have a larger gap between their needs and funding for local services.[41][42]

Rises in the cost of living have further impacted deprived communities. The Office for National Statistics observed that data from November 2021 to March 2022 showed that increasing household bills disproportionately affected people living in the most deprived areas.[43] Researchers have commented that cost of living rises have made achieving the levelling up missions more difficult.[44]

Living in a deprived area can impact health and life expectancy.[45][46][47][48][49][50] A 2023 report by the Chief Medical Officer for England noted that there was a gap in effective biological age for people living in poverty and deprivation when compared to people in the least deprived areas.[51] Guidance from Public Health England in 2019 noted that poverty can be a cause of mental ill health.[52]

Coastal communities face distinct challenges,[53] with particularly poor public health outcomes. Research by the Centre for Coastal Communities at the University of Essex in 2024 found that in four out of five measures of health, teenagers who had lived in poorer, coastal areas were worse off in terms of their health as young adults than those who lived in areas inland.[54][55]

Both deprivation, and efforts to address it such as levelling up, may impact different demographic groups in different ways. Some experts have expressed concerns about inequalities and limitations for some groups, for example, people from ethnic minority communities,[56] women,[57][58][59] and middle-aged men[60][61][62]. For example, analysis from the charitable organisation the Kings Fund observed an over-representation of most ethnic minority groups in communities that are more deprived.[63]

Some experts note risks around regeneration of deprived areas, for example, through gentrification.[64]

Evidence shows that the issues facing deprived communities are multi-faceted, deep-rooted and differ across nations and regions.[65] Researchers have outlined the benefits of an approach that is sensitive to the needs of particular places, and engages the community itself.[66]

Experts and researchers, including some who responded to the horizon scan, have noted different opportunities to improve outcomes for deprived communities, including:

high quality education, skills, training and employment pathways[67][68][69][70][71]
improving transport connections to help people to access these pathways[72]
attracting businesses to invest in deprived areas, and considering the role of Business Improvement Districts[73]
support for mental health through appropriate services and resources[74][75]
addressing a lack of childcare, which is more common in deprived communities[76][77][78]
the role of universities in supporting local areas with social and economic goals,[79][80][81][82] and in working with other public, private and third sector organisations to tackle local issues[83][84]
addressing a lack of affordable housing in deprived areas[85]

Key uncertainties/unknowns

There is significant research looking at social factors around disadvantaged and deprived communities in the UK.[86] However, there is a lack of understanding around how economic, educational and social factors interact to shape outcomes at the community level.

It is unclear what kinds of policy interventions will work in the long term in different areas. There is a lack of understanding about the relationship between policies focused on specific geographical areas and national policies. For example, many people living in deprived communities are working in relatively low-paid jobs, meaning that national policy on pay and working conditions will shape their circumstances and those of their community.

Key questions for Parliament

What will be the impact of the funding devoted to levelling up related projects on deprived communities, and how will this impact be evaluated so it can be used to inform future investment in deprived communities?
What future policy approaches should be taken, and level of funding allocated, to addressing the needs of deprived communities? How should that funding be distributed and allocated between different geographical areas?
How can local and regional government best support deprived communities?
How can businesses, charities and other organisations working in deprived communities be supported to work together to address the interrelated challenges these communities face?
What actions could enable government departments to work on cross-cutting issues affecting deprived communities and to maximise the impact of policy interventions in this area?

References

[1] Department for Levelling Up, Housing and Communities (2019) English indices of deprivation 2019, Research report, September 2019.

[2] Devlin, A. McKay, K. & Russell, R. (2018), Multiple Deprivation in Northern Ireland (PDF). Northern Ireland Assembly, Research and Information Service.

[3] SIMD (2020) SIMD2020: Overall Deprivation Map

[4] Welsh Parliament (2021) Where are the most deprived areas in Wales?

[5] Welsh Government (2021) A review of evidence on socio-economic disadvantage and inequalities of outcome (summary)

[6] UK Government (2019), English indices of deprivation 2019

[7] Francis-Devine, B. (2019) Deprivation in English constituencies, 2019 House of Commons Library.

[8] Public Health Scotland (online) Key points – ScotPHO

[9] Devlin, A. McKay, K. & Russell, R. (2018), Multiple Deprivation in Northern Ireland (PDF). Northern Ireland Assembly, Research and Information Service.

[10] Welsh Index of Multiple Deprivation (online) Welsh Index of Multiple Deprivation (full Index update with ranks): 2019 | GOV.WALES

[11] Welsh Index of Deprivation summary results (online) welsh-index-multiple-deprivation-2019-results-summary-271.odp (live.com)

[12] Local Trust (2023) Policy spotlight 1: How social infrastructure improves outcomes (PDF).

[13] Prof Coyle, D., Erker, S. and Westwood, A. (2023) Townscapes: A Universal Basic Infrastructure for the UK – Bennett Institute for Public Policy. Bennett Institute for Public Policy, University of Cambridge.

[14] APPG Left Behind Neighbourhoods (2021) ‘Left behind’ neighbourhoods have poor public transport but are more reliant on it, new research shows – APPG for Left Behind Neighbourhoods

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[33] Department of Levelling Up, Housing and Communities (2024) 60% of England now covered by historic devolution deals

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