This document provides guidance for local authorities in the UK on tackling socio-economic inequality. It discusses the nature of inequality in the UK and London. It then outlines the socio-economic duty for public authorities, the benefits of adopting it locally, and six key steps for implementation: conducting meaningful impact assessments, using data effectively, encouraging strong leadership, partnering with those with lived experience, community engagement, and access to justice/compliance monitoring. Examples are given of how some local authorities have adopted the duty. The document concludes with discussing next steps for authorities.

1. Tackling socio-economic inequality with local
authorities – a practical guide
London policy and strategy network
25 November 2021
Helen Flynn: Head of Policy, Campaigns and Research
helen.flynn@justfair.org.uk
Website: http://justfair.org.uk/ Twitter: @JustFairUK

3. Order of session
1. What is inequality and what does it look like?
2. Why does it matter?
3. Activity
4. The socio-economic duty
5. The practical guide
6. Activity
7. Conclusion

4. Inequality in the UK
We are one of the most unequal of all developed
countries
■ Wealth Inequality – the 1,000 people in the
Sunday Times Rich List are comfortably richer
than the poorest 40% of households
combined (2019).
■ Pay Inequality – average CEO remuneration is
£3.46m or 121 times what a nurse is paid, 103
times more than a teacher, 95 times more
than a police officer and 217 times more than
a care worker (2017/18).
■ Don’t forget: excessively high pay translates
quickly into wealth (assets).

5. Inequality in London

6. Inequality in London
• Geographically, in 2019 London had the largest ethnicity pay gap, with minority ethnic groups earning 23.8%
less than White employees, which is worse than 2018 when the gap was 21.7%. This is particularly
important as there is a disproportionate number of Black workers living in London compared with other
parts of the country.
• The biggest increases for low-income households have occurred in London where households in the bottom
half of the income distribution paid on average 51% of their income (excluding any Housing Benefit) on rent
in 2016/17 to 2018/19 (compared with 47% in 2012/13 to 2014/15).
• Research by Inside Housing showed that in the early stages of the pandemic, coronavirus deaths were
highest in local authorities with the highest rates of overcrowding and the largest prevalence of houses in
multiple occupation (Barker, 2020). This was particularly true of London boroughs where overcrowding is
especially high. By 17 April 2020, 18 of the 20 local authorities with the highest death rates were in London.
The worst affected also tended to have large BAME populations, with Newham (61% of adults from a
minority ethnic group), Brent (60%) and Hackney (40%) fairing the worst.
From UK Poverty 2020/21 – Joseph Rowntree Foundation

7. Source: Wilkinson & Pickett, The Spirit Level
(2009)

8. S1 Public sector duty regarding socio-economic inequalities
(1)An authority to which this section applies must, when making decisions of a
strategic nature about how to exercise its functions, have due regard to the
desirability of exercising them in a way that is designed to reduce the inequalities
of outcome which result from socio-economic disadvantage
S216 (3) … provisions of this Act come into force on such day as a Minister of the
Crown may by order appoint.

10. Benefits of local adoption
• Improving outcomes for local people experiencing socio-economic disadvantage.
• Supporting cross organisational and cross departmental working.
• Raising awareness of socio-economic inequalities within organisations and among
partners.
• Ensuring widespread organisational commitment to, and consideration of, socio-
economic inequalities.
• Supporting the participation of low-income residents in decisions that affect them,
especially in the context of (proposed) cuts to services.

11. Benefits of local adoption
• Achieving greater consistency in practice - and an increased likelihood of maintaining
such consistent practice across political administrations and between changes of
individual leadership and turnover of staff.
• Improving systematic approaches to equality impact assessments and assessment of
policy and practice more broadly.
• Strengthening systematic data gathering and analysis, especially in the conduct of
equality impact assessments, thereby strengthening accountability.
• Supporting the effective and efficient allocation of resources.

12. Benefits of local adoption
“…local authorities’ motives for tackling socio-economic inequality and its adverse
consequences extend beyond moral and ethical concerns to include medium to long term
financial planning. Just Fair considers it significant that the voluntary adoption of a
responsibility to tackle socio-economic disadvantage was cited by many interviewees as
being motivated by a need to achieve financial efficiencies and inform tough decisions
about the allocation of resources that are required to be made.”
Just Fair, Tackling socio-economic inequalities locally, 2018

13. 6 Key Steps to Implementing the Duty
1. Meaningful impact assessments to understand the consequences of socio-economic
disadvantage
2. Using data effectively as a tool for decision-making and accountability
3. Encouraging strong and visible leadership
4. Principles of working in partnership with people with lived experience of socio-economic
disadvantage
5. Engaging with residents, civil society, and voluntary and community sector organisations
6. Ensuring access to justice and monitoring impact and compliance

14. Meaningful impact assessments to understand the
consequences of socio-economic disadvantage
• What are the potential impacts of the proposal/decision as we currently understand them?
• Are there any unintended consequences of the proposal/decision on people experiencing poverty and
at the sharp end of inequality?
• How could the proposal/decision be improved so it reduces or further reduces inequalities of
outcome, with a particular focus on socioeconomic disadvantage?
• How will this policy or service assist us to reduce inequality in outcomes overall?
• How can we ensure the views and experiences of people in poverty and at the sharp end of inequality
inform decisions and service design?
• [If planning to adjust a proposal/decision], can we adjust our decision further to benefit particular
• communities of interest or of place who are more at risk of socio-economic disadvantage?
From The Fairer Scotland Duty

15. Using data effectively as a tool for decision-making and
accountability

16. Encouraging strong and visible leadership

17. Principles of working in partnership with people with
lived experience of socio-economic disadvantage

18. Engaging with residents, civil society, and voluntary and
community sector organisations

19. Ensuring access to justice and monitoring
impact and compliance

20. What can local adoption look like?
• North of Tyne Combined Authority
Equality and Diversity Policy:
“We will go further than our statutory duties under the 2010 Equality Act by seeking to implement the Act’s socio-economic duty (Part 1
Section 1) so that we will assess whether our policies reduce or increase inequalities caused by socio-economic disadvantage. This will be
incorporated into our Equality Impact Assessments.”
• Newcastle City Council
On 26 January 2012 the Council’s Cabinet voted to approve the following decision:
“(i) Endorse the principle of routinely including a socio-economic impact assessment duty in its strategic decision making;
(ii) Consider the progress that has been made so far to ensure that impacts on the poorest people are at the heart of key decisions;
(iii) Request that further detailed work be undertaken to consider how this approach might be given practical effect within the decision
making processes of the Cabinet.”
• Southwark Council
Voted on 14 July 2021 to include socio-economic disadvantage as a factor in their decision-making by committing to implement the
socio-economic duty. The updated constitution, which includes the socio-economic duty was published on 21 July 2021. In order to
further embed the duty across the local authority, explicit commitment to this duty can now also be found in the Council’s new Equality
Framework.

21. Group exercise
Regarding: using the SED and the ‘key steps’ - in small
groups share and discuss 3 things that you:
• are already doing that you could do more of
• are not doing that you could start doing
• are doing which you could stop doing

22. Next steps
1. Talk with your colleagues to decide on action you can take
2. Talk with colleagues in other authorities and learn more about
best practice
3. Stay in touch

23. Questions?

24. Stay in touch:
helen.flynn@justfair.org.uk
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Twitter: @JustFairUK