Social mobility expert says it has been “all downhill” for almost seven decades, with Covid increasing the gap between the rich and poor.
The CEO of the Social Mobility Foundation, Sarah Atkinson, called on the government to focus on “inclusive growth” and a new strategy to tackle disadvantage.
Speaking at Homerton College’s annual Kate Pretty lecture on Thursday, Atkinson noted that 2021 marked the year when the majority of workers earned less than their parents in real terms.
“1958 was the peak. If your parents were born in 1958, you could tell them ‘you absolutely had it best’. It has been downhill since then. Since then, the extent to which parents can expect their children to earn more than them, we've started to see that link weaken. And actually, since the 1990s, it's really decelerated. For the first time, in 2021, fewer than 50 percent of people earned more in real terms than their parents”, she told a packed lecture theatre.
Atkinson said the British workforce required “dramatic upskilling” and a focus on work readiness. “We don't just need growth, we need inclusive growth. We need growth that will benefit those communities who have been left out, those young people who've been left out. If we targeted every bit of government spending, every bit of government strategy, industrial strategy, AI strategy around inclusive growth, that would be pretty powerful.”
The lecture, called ‘Moving Up? What Future for Social Mobility in an Anti-Diversity Climate?’ took the form of an in-conversation with Homerton College Principal, Lord Simon Woolley, who noted that the event was taking place on the 80th anniversary of Victory in Europe (VE) Day.
Lord Woolley said: “In many ways it is very fitting. Not least because the postwar settlement in the UK saw significant improvements in social mobility, primarily due to the expansion of the welfare state and the 1944 Education Act, which introduced free secondary education. These policies provided broader access to education and social security, leading to greater opportunities for the working class to move into higher social and economic positions.”
A Fairness Foundation report last autumn found that Britain had the second-highest gap between the richest and poorest 10 percent in the ‘developed world’. Between 2011 and 2019, the top 10 percent became £280,000 wealthier, while the bottom 10 percent continued to have no wealth at all, with many in debt.
The Resolution Foundation thinktank and Trades Union Congress have both claimed that Britain is suffering the longest wage squeeze since the Napoleonic wars, two hundred years ago, while economist Gary Stevenson has calculated that the Covid crisis effectively transferred £700 billion from working people to the super-rich; wealth they are using to buy up assets like property, which further squeeze the rest.
Amid polling showing the public increasingly sees the cost-of-living crisis as a permanent state of affairs, and growing disappointment that Labour’s promise of growth is failing to materialise, the world of politics is experiencing upheaval as the Reform UK party swept to victory in local elections and leads the national polls in voting intentions.
Adding to the instability is the recent impact of United States trade tariffs and the burning of diversity initiatives. Atkinson said that the assault on equity, diversity, and inclusion in the US had caused a chilling effect in Britain. “The impact of the American rollback is very dramatic in America. It is less dramatic here, but it is destabilising and unsettling, and it is causing people to be slower and more cautious. It is making leaders who were [previously] proud to pioneer and take risks, look a little bit more alone and be asked, “Are you sure [you want to do this]?”
Atkinson argued that now was not the time to retreat, but there was an opportunity to build a “broad coalition around recognising that working class communities, young people in particular, have been excluded from the benefits of prosperity and growth”, and it was a “moment for the voices of young people” to be heard.
She called for renewed attention on addressing educational inequality, especially at Early Years, labour market interventions, and better quality careers advice. Apprenticeships needed an overhaul, as high quality opportunities were still being dominated by young people from privileged backgrounds, and “no one is accountable” for ensuring good outcomes are achieved.
“The people who are most successful in apprenticeships, particularly at those higher level six and seven apprenticeships, are the children of smart, middle-class parents who understand how to navigate a competitive recruitment system and who can support their [children] in completing their apprenticeship, with the bank of mum and dad and lots of good advice.”
The government apprenticeship levy, paid to employers to encourage them to take on apprenticeships, also came in for criticism. “The financial incentives [of the levy] need to be connected to the outcomes we want, which are skills and training at every level, to create opportunity, and to give good work. Everybody agrees, but there's a bit of inertia around [reforming the levy].”
Responding to a question by Cambridge alum Victoria Ayodeji, Atkinson said: “We need to think about sponsors rather than mentors. So people who will, yes, give you advice and support you, but will also talk about you when you're not in the room, in a good way. You know, ‘I want to champion Victoria for this project because I've worked with her and she's excellent’. This can be really significant; if you don't have someone to speak up for you, you won't be picked.”
There were also a series of insightful questions from students from the nearby Abbey College, who asked about policies to tackle disadvantage, and expressed worries over the future of equality in today's political environment. The event was followed by a special formal dinner hosted by the Principal.
Lord Woolley said: “At Homerton, we pride ourselves on that sense of belonging. It doesn't matter if you're a little bit posh, or that you're from a council estate, you all belong in that space. And nobody asks you, ‘why are you here?’ Because you belong. You belong, and then you flourish.”
