A new report into poverty in York by academics from York university warns the gap between the city's haves and have-nots is widening as those languishing on benefits fall further and further behind.

The study, commissioned by the Joseph Rowntree Foundation 100 years after the pioneering study of poverty in York by Seebohm Rowntree, says changes in the jobs market are adding to York's growing army of the needy.

But it warns city council chiefs and others who aim to tackle the problem face a dilemma: their efforts to address poverty could bring attention to the problem - and drive away the inward investment the city needs for a prosperous future.

The report makes clear poverty and deprivation are focused in particular areas of the city.

Bootham, Clifton, Guildhall, Walmgate and Bishophill wards have the highest levels of disadvantage, while satellite villages in areas like Copmanthorpe, Upper Poppleton and Wheldrake have the least.

The study claims that benefit levels which have fallen steadily behind earnings since 1980 are mainly to blame for the increasing gap between rich and poor.

But the growing number of poorly-paid, insecure jobs in the services sector such as tourism are adding to problems amongst the worst off.

The gap between rich and poor is just as wide in York as in any other area of the country, the report says, despite the apparent prosperity of the city.

City council leader Rod Hills said today the report portrayed a "depressing" picture of the city, but insisted the council was not being put off tackling the problems of the poor by fears of deterring inward investment.

He said: "We have done a lot of work with communities like those in Bell Farm, Clifton and Foxwood. It's not a case of polishing up the Minster and letting the rest go down. We're working hard to improve the environment in some areas, as well as helping to improve job prospects and encouraging people to set up businesses."

York MP Hugh Bayley said today the Government had already introduced a minimum income guarantee for pensioners linked to earnings, and was bringing in a similar guarantee for disability benefits.

It had also set up a social exclusion unit to tackle the causes of poverty and end child poverty within 20 years.

Poverty gap widens over century

A hundred years ago, the philanthropist Seebohm Rowntree carried out a ground-breaking study of poverty in York. A century on, academics from York University have followed in his footsteps to provide an updated snapshot of the way the city is today. Stephen Lewis reports

A hundred years ago, a pioneering study into poverty in York by Seebohm Rowntree helped mould the benefits system which has endured in Britain for nearly half a century.

But while workhouses are a thing of the past, standards of health and education are dramatically improved, and in theory there's a welfare safety net to catch those most in need, some things just don't change.

A team of researchers from York University, funded by the Joseph Rowntree Foundation, have carried out a fresh study of poverty in York almost exactly 100 years after Seebohm's.

They studied data from the 1991 census, interviewed representatives from the council, the health services, the benefits agency and others working with those in need, and spoke to ordinary people in York about their experiences of living in the city. The result is a major report published today which makes uncomfortable reading for those deceived by the city's cosy, comfortable image.

The gap between York's rich and poor - those on benefits - is increasing, the report says. And despite the city's image as an affluent community, that gap between the haves and have-nots is just as wide as anywhere else in the country.

Report authors Meg Huby, Jonathan Bradshaw and Anne Corden say: "All the empirical evidence suggests that, even for those who need benefits only for short periods, the incomes they provide are inadequate for meeting basic needs, let alone for full participation in society.

"Income support and JSA (job-seekers allowance), which determines the living standards of one person in six in the UK, has been uprated only in line with prices since 1980, while earnings have risen by more than 40 per cent during this period.

"The result of this is that living standards of those families and households on income support in York have become increasingly detached from those of the rest of the population of this city."

It is not only the unemployed and those on benefits who are in poverty, though, the report warns.

Changes in the nature of work mean that some people actually in paid work are also struggling to make ends meet.

The report warns: "The expansion of the service sector in York has brought some new jobs, but the wage levels and employment conditions associated with these jobs are contributing to experiences of impoverishment, insecurity, mental stress, family strain and a poor quality of life.

"As well as low income, we have found evidence of the concomitants of 'poverty', including ill health, homelessness, debt, drug and alcohol misuse, crime, isolation, personal and family insecurity, and breakdown of relationships."

As a 'heritage' city, York faces a particular dilemma, the report says. It needs to project a cosy, attractive image to attract the inward investment that can guarantee the city's future.

Attempting to address the problems associated with poverty could endanger that image.

The report says: "To identify (the city) as a priority for action by local government might jeopardise the success of the work that is being done by the same authority to encourage inward investment, create jobs and improve the living standard of residents."

A thorny dilemma for council chiefs to grapple with as York prepares to enter the brave new world of the new Millennium.

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.