Housing wealth matters

Houses-on-coins-by-Images-Money

With the widening gap between the richest and poorest across different measures of inequality, there is growing awareness that income is not the only factor that impacts living standards. This has led to increasing interest in the distribution of wealth. While wealth can take various forms, the most visible way households accrue and store substantial amounts of wealth is through property ownership.

Property wealth in Scotland has increased ten-fold over the last 50 years – driven primarily by rising house prices, but also by the increasing number of properties and transfer of public housing into the private sector. However, this wealth is not distributed equally. In its recent examination of the scale and distribution of housing wealth in Scotland over time, the Resolution Foundation highlighted the marked rise in housing wealth inequality over the last decade, which is now twice as high as income inequality.

Why?

The new report shows that the growing inequality in housing wealth is in large part due to the fact that while very few families in Scotland currently have no form of income, over one in three Scottish households hold no property wealth at all and those in the top income decile own around 30% of the country’s property wealth.

Additional property ownership has also increased in recent years, adding to the level of inequality. The biggest wealth gaps were found to be in Scotland’s largest cities – Aberdeen, Dundee, Edinburgh and Glasgow – where low rates of home ownership are coupled with ownership of multiple properties, concentrating housing wealth in fewer households’ hands.

In addition, the last decade has seen many people struggle to get a foot on the housing ladder and today’s young people hold less housing wealth than their predecessors. Location was also found to have an impact as house prices can differ greatly by local authority, although these variations have reduced in recent years.

As a result, levels of housing wealth inequality are now nearing the same levels as those in England and Wales, although rates of homeownership remain higher in Scotland than elsewhere in the UK.

With more people now having some form of income than ever before, it is perhaps reasonable to ask why housing wealth is so important.

The Foundation’s report highlights that owning property has value over and above general wealth effects in that it can also provide a secure home; a source of income; and greater financial security in later life. Indeed, the UK Collaborative Centre for Housing Evidence (CaCHE) and Policy Scotland’s evidence review, which complemented the Foundation’s analysis, also highlights why housing wealth matters, citing many economic, health and social impacts.

Why housing wealth matters

While it has been previously argued that housing wealth inequalities are of little significance in terms of macroeconomic impact and can therefore be disregarded, there is now a growing body of evidence suggesting that in fact these inequalities do matter. The evidence review notes that:

  • housing assets are of growing importance encouraging household spending and were implicated in the global financial crisis;
  • access to home ownership is increasingly reliant on parental property wealth with negative implications for social mobility;
  • housing wealth is cumulative: e.g. buy-to-let has increased dramatically in Scotland over the last 20 years, often facilitated by the re-mortgaging of existing property by owners;
  • rising house price and wealth effects reduces productivity growth; and
  • different rates of house price change create inequalities across UK regions.

This is not only the case in Scotland and across the UK; across Europe housing wealth inequality has been shown to exacerbate socio-economic differences by segregating households based on income levels.

In relation to health and wellbeing, housing wealth can be a double-edged sword. A rise in house prices can lead to increased physical health of owners but decreased physical and mental health of renters.

Of course, historically, housing wealth has been seen to contribute to reduced wealth inequalities due to increased home ownership, however, there is now also an emerging concern that high house prices and rents may impair labour supply and productivity.

HWI

Main elements of wealth inequality processes within the housing system (CaCHE, 2019)

It is clear that income is not the only important factor in inequalities. This is illustrated by recent figures on child poverty and in-work poverty, which show that despite recent record levels of employment, two thirds of children living in poverty come from working households and more than half the people living in relative poverty in 2017/18 (53%) lived in households where at least one adult was in paid employment.

The Resolution Foundation notes that while the scale and distribution of housing wealth has changed dramatically over the past 50 years, wealth taxation has not.

Indeed, it has been recently argued that policy is widening the housing wealth divide and that the local supply of housing needs to be realigned with local housing demand if this is to be rectified.

Way forward

The research suggests that a number of actions could be taken to address the growing housing wealth inequalities in Scotland:

  • Firstly, support for sustainable home ownership, especially for those on lower incomes or in the younger age bracket is highlighted as one obvious response, although it notes that policies such as Help to Buy risk stimulating demand to the point that house prices are driven up. As a result, it is suggested that policy action to lessen the demand for holding additional properties would be a more sensible strategy.
  • Second, it is argued that there is a strong case for substantial reform in the area of the property taxation to address the current mismatch between the value of housing wealth and taxation.
  • Third, it is suggested that the Scottish Government could give consideration as to how the benefits of holding housing wealth can be provided to those who are unlikely to ever be able to support home ownership, with more efficient taxing of housing wealth. In addition, the government could also build on their recent reforms which have provided tenants with greater security of tenure and more predictable rent increases, and look to provide more support to low-income families via further supplements to benefits.

With the current system of council tax described as “highly regressive”, “inequitable” and “inefficient”, the research calls for much needed reform.

Both reports acknowledge that radical change is a political challenge but while the Resolution Foundation’s report states the case for action is clear, the evidence review advises caution, suggesting that a more equal housing system is a long-term aspiration rather than something practical and realisable in the short to medium term.


If you enjoyed reading this, you may also be interested in some of our previous posts on housing topics.

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A rising tide: the growing importance of the blue economy

Wild Surf

There has been much focus on the green economy in recent times as the international community attempts to address the current ‘climate emergency’. According to the United Nations (UN), “an inclusive green economy is one that improves human well-being and builds social equity while reducing environmental risks and scarcities.” Over the past decade, many governments have highlighted the green economy as a strategic priority, and since the Intergovernmental Panel on Climate Change (IPCC) published its special report on the impacts of global warming of 1.5 °C in 2018, action has been stepped up across the globe.

However, green economy strategies tend to focus on the sectors of energy, transport, agriculture and forestry, which leaves out an important part of the world’s environment – the oceans. It has been argued that “a worldwide transition to a low-carbon, resource-efficient green economy will not be possible unless the seas and oceans are a key part of these urgently needed transformations”.

Perhaps unsurprisingly then, a new buzzword in the international sustainability agenda is gaining momentum – the ‘blue economy’. Since the turn of the 21st Century, there has been an increasing commitment to growing the blue economy but what exactly is it and why is it important?

What is the blue economy?

Similarly to the green economy, there is no internationally agreed definition of the blue economy. Its origins stem from the Rio+20 outcomes whereby member states of the UN pledged to ‘protect, and restore, the health, productivity and resilience of oceans and marine ecosystems, to maintain their biodiversity, enabling their conservation and sustainable use for present and future generations.’

It is further explained through the UN General Assembly support for Sustainable Development Goal 14: ‘Conserve and sustainably use the oceans, seas and marine resources for sustainable development’ as set out in the UN’s 2030 agenda for sustainable development.

Various definitions have been used by different agencies.

According to the World Bank, the blue economy is the “sustainable use of ocean resources for economic growth, improved livelihoods and jobs, and ocean ecosystem health.”

Conservation International has suggested that, “at its simplest, ‘blue economy’ refers to the range of economic uses of ocean and coastal resources — such as energy, shipping, fisheries, aquaculture, mining, and tourism. It also includes economic benefits that may not be marketed, such as carbon storage, coastal protection, cultural values and biodiversity.”

Like the green economy, the blue economy model aims for improvement of human wellbeing and social equity, while significantly reducing environmental risks and ecological scarcities.

Why the blue economy is so important?

Clearly, ocean health is vital to the blue economy. With over 70% of the world’s surface covered by ocean, almost half of the world’s population living in close proximity to the sea, the majority of all large cities being located along the coast and 90% of global economic trade travelling by sea, it is not difficult to see why the ocean and its resources are seen as increasingly important for both sustainable and economic development.

It is also a source of food, jobs and water, and contributes to the protection of the environment by absorbing carbon dioxide emissions. It has been estimated that the global blue economy has an annual turnover of between US$3 and 6 trillion and is expected to double by 2030. It is also estimated that fisheries and aquaculture contribute $US100 billion annually and about 260 million jobs to the global economy. In addition, over 3 billion people around the world, mostly from developing countries, rely on the world’s oceans and seas for their livelihood.

It is therefore not surprising that ocean pollution and the threat to marine resources have ascended the sustainability agenda in recent years, attracting increasing global attention and high-profile interest.

Sir David Attenborough’s popular Blue Planet II series highlighted the devastating impact pollution is having on the world’s oceans. It led to drastic behaviour change – 88% of people who watched the programme reported having changed their behaviour as a result, with half saying they had “drastically changed” their behaviour, and half saying they had “somewhat changed” it.

The recently heightened concerns over climate change have also highlighted the importance of the blue economy. The IPCC report warned that coral reefs would decline by 70-90% with global warming of 1.5°C, whereas virtually all (> 99%) would be lost with 2ºC.

Momentum building

Governments and organisations from across the world have been taking action to address the climate emergency with many strengthening commitments to growing the blue economy in particular.

The first ever global conference on the sustainable blue economy was held last year. It concluded with hundreds of pledges to advance a sustainable blue economy, including 62 commitments related to: marine protection; plastics and waste management; maritime safety and security; fisheries development; financing; infrastructure; biodiversity and climate change; technical assistance and capacity building; private sector support; and partnerships.

A new High Level Panel for a Sustainable Ocean Economy was also established in September, the first time serving heads of government have joined forces on a global pact to protect the world’s oceans.

The UN’s Decade for Ocean Science (2021-2030) will also soon be upon us and the World Trade Organisation has been tasked with ending harmful fisheries subsidies by 2020. New approaches are also helping countries value their small-scale fisheries. Scotland’s economic action plan, for example, makes a specific commitment to grow the blue economy which includes a new, world-leading approach to fisheries management with a focus on inclusive economic growth.

Way forward

The increasing awareness of the blue economy and the threats it currently faces provide an opportunity to change things for the better. As the global conference on the sustainable blue economy suggested, a sustainable blue economy strategy needs to be people-centric with ocean-centric investments. If momentum keeps building towards growing the blue economy across the globe, perhaps this will go some way to mitigating the global climate emergency bringing benefits for all.


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Beneath the headlines: record high employment rate, but what’s more important – quantity or quality?

Competition for new jobs

The UK employment rate has hit a joint record high of 76.1%, according to the latest official figures. The unemployment rate was estimated at 3.8%; it has not been lower since 1974. The economic inactivity rate was also close to a record low.

It’s not surprising that such record figures are often highlighted as ‘good news’ headlines. However, there has also been an increasing focus on quality of work over the past decade and the impact this has on people’s lives – reflecting concerns regarding developments in working practices, as highlighted by a recent City-REDI briefing paper. It has therefore been argued that the record employment rates are not necessarily representative of a ‘good news’ story.

Concerns

Concerns over working practices include the rise of the gig economy, unequal gains from flexible working, job insecurity and wage stagnation, to name but a few. The City-REDI paper outlines a number of ongoing concerns related to:

  • weak productivity growth;
  • employment insecurity and precarity;
  • in-work poverty;
  • skills shortages and skills polarisation; and
  • the impact of automation, technological change and the gig economy on the nature and experience of work.

Indeed, analysis has shown that much of the recent rise in employment is due to a ‘surge in low-value work’, which is holding back productivity growth. Many people are stuck in low paid insecure work, all of whom are contributing to the high employment rate.

Recent research from the Joseph Rowntree Foundation has reported that four million workers live in poverty, a rise of over half a million over five years – meaning in-work poverty has been rising even faster than employment. The causes of this increase include poorly paid jobs – particularly under temporary and part-time contracts – and a lack of progression routes for people in low-skilled work.

In addition, the rising gig economy shows no signs of slowing down, more than doubling in size over the past three years and now accounting for 4.7 million workers, according to a new report. An interesting finding of the report is that the majority of gig economy workers use this platform to supplement other forms of income, suggesting that workers are not getting enough of an income from their primary employment.

It has also been shown that advances in technology have pushed some workers into poorer quality jobs than those lost, something which cannot be addressed without some kind of policy intervention.

Health impact

Not only is poor quality work bad for the economy, it is also bad for people’s health.

A recent report which examined the impact on social inequalities of policy initiatives and reforms to extend working lives in five European countries, highlighted that working conditions are also known to influence post-retirement health, and for those with lower socioeconomic status, workplace arrangements may be causing or contributing to poor health.

A number of studies have highlighted the link between good work and health and wellbeing. As stated by a What Works for Wellbeing briefing paper, “Being in a job is good for wellbeing. Being in a ‘high quality’ job is even better for us.” It has also even been suggested that being in a poor quality job is actually worse for health and wellbeing than remaining unemployed.

Moves towards improving quality

Recent developments in the UK to address such challenges for the future and quality of work include:

  • the establishment of The Work Foundation’s Commission on Good Work in 2016, which aims to better understand the factors shaping change, and the nature and scale of opportunities and risks, so as to promote policies to achieve ‘good work’;
  • The commissioning and publication of the independent Taylor Review of Modern Working Practices in 2017 which called for policy to address the wider issue of creating quality jobs for all; and
  • the Government’s Good Work Plan, published in December 2018, which sets out the reforms planned to help improve quality of work – the first time the UK Government placed equal emphasis on the quality and quantity of work.

In addition, the Chartered Institute of Personnel and Development (CIPD) launched the UK Working Lives survey, the first robust measurement of job quality in the UK. This has since contributed to government thinking and recommendations around ‘good work’ in response to the Taylor Review.

Despite the widespread agreement over the need to adopt ‘good work’ principles, however, there remains no agreed set of indicators of exactly what it encompasses nor metrics for measuring progress towards it.

What is good work?

As the City-REDI briefing paper and other studies indicate, defining good quality work is complex as quality means different things to different people.

A range of factors contribute to different people’s perception of quality and fulfilling work, including pay, flexibility, security, health and wellbeing, nature of work and job design. The CIPD survey highlights seven dimensions of job quality:

  • pay and benefits
  • employment contacts
  • job design and nature of work
  • work-life balance
  • work relationships
  • voice and representation
  • health and wellbeing

Of course, there is no one size fits all solution.

Final thoughts

While productivity and employment rates undoubtedly remain important, they alone are clearly not enough to understand the health of the labour market; the quality of work also needs to be considered.

As shown by the visible shift from quantity to quality of work in recent years and the recent developments from the government and others, ‘good work’ is undeniably on the policy agenda. However, as the City-REDI paper suggests, there should be a focus on promoting ‘good work’ amongst the most disadvantaged groups such as the young, people with disabilities and those working in hotels and restaurants. It is also suggested that there is scope for further research on good practice in promoting ‘good work’ in establishments of different sizes and in different sectors.

As highlighted in the Taylor Review, “All work should be fair and decent with realistic scope for development and fulfilment.


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Turning the tide on perceptions of value: what do students think value for money really means?

A little over a year and half since we last wrote about the value of higher education (HE), which highlighted a downward trend in perception of value, it would seem the tide may be turning.

As we previously highlighted, one of the headline findings of the Higher Education Policy Institute’s (HEPI’s) 2017 Student Academic Experience Survey was falling perceptions of value for money, with the percentage of students perceiving university not to be value for money almost doubling in the previous five years. But the 2018 survey highlights a distinct turnaround, with students reporting “statistically significant improvements in perceptions of value for money from their higher education experience.” Could this be the start of a new trend?

‘Promising upturn’

Among the main highlights of the 2018 survey, which describes a “promising upturn”, include:

  • 38% of students in the UK perceive ‘good or very good’ value from their HE course – an increase of three percentage points from last year’s survey, reversing a five-year downward trend
  • fewer students studying in the UK (32%) perceive ‘poor’ or ‘very poor’ value, compared with 34% in 2017
  • there is a clear, statistically significant, improvement among students from England, representing the largest number of students, where 35% report ‘good’ or ‘very good’ value
  • there has been an improvement among students domiciled in Scotland (though not statistically significant) where 60% of students surveyed perceive ‘good’ or ‘very good’ value, continuing to report the most positive opinions overall, while students from Wales and EU students studying in the UK report similar perceptions of value as last year, 48% and 47% respectively. Perceptions of value in Northern Ireland remain in decline – albeit not statistically significant
  • Students at institutions which secured a Gold award in the Teaching Excellence Framework are more likely to perceive they have received good value, but there is no noticeable difference on this measure between Silver and Bronze-rated institutions

While it should not be forgotten that almost a third of students still perceive poor value, which remains a concern, this reversal of a five-year trend is undoubtedly encouraging. Moreover, what makes the latest HEPI survey particularly interesting is that for the first time, it includes evidence on what lies behind these perceptions.

What does value for money mean?

As our previous blog showed, the increasing cost of HE has contributed to the decline in perceived value for money as many believe the financial cost is not worth the career prospects. But it isn’t all about the financial element, although, as has been previously argued, perceptions of quality are not always clearly articulated. To help make things clearer, the latest survey incorporates new sections on: what factors relate to good or poor value, happiness with subject choice and experiences of different ethnic groups.

These new sections provide greater insight into just what students perceive as value for money. Interestingly, when asked about what factors influence their perceptions of value (chosen from a pre-defined, randomised list), 68% of students who felt they received ‘good’ or ‘very good’ value for money regard teaching quality as the most important factor behind this, followed closely by course content (67%) and facilities (62%).

None of the top five reasons for perceiving ‘good’ or ‘very good’ value related to financial cost, whereas price dominated the list for poor value where two out of the five most popular answers related to cost – tuition fees (62%) and cost of living (37%). The survey suggests that these findings indicate that cost and value are difficult to separate in the minds of students and that a perception of value for money can be difficult to attain given the level of current fees.

Career prospects and campus environment and university buildings were also cited as significant factors driving good value. This suggests that investment in the physical environment should be included among other priorities, given its status as a ‘major contributor’ to the student experience.

No time for complacency

Despite these promising findings about the student experience, there are still real concerns. Perhaps somewhat worrying is the finding that past gains in teaching quality have not been built upon, with students’ ratings of teaching staff down slightly on last year. Given the importance of teaching quality in perceptions of value, if this does not change it could very well contribute to a return to the downward trend in value perceptions.

Other concerns highlighted by the survey, include  perceptions of the wellbeing of students, which remain relatively low and continue to fall. In addition, some ethnic minorities tend to experience barriers and have lower perceptions of value.

As highlighted by Nick Hillman, Director of HEPI and a co-author of the report, the survey “exposes the areas where improvements are needed.” He also argues that “institutions have to work harder to ensure all students are catered for in full.”

Nevertheless, the survey emphasises that the fact the student experience remains positive should be recognised, particularly given the level of financial burden that students take on and the widening range of alternative routes available. Hopefully, the next survey will reveal a continuation of the upward trend in perceptions of value.


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“The ‘frustrated’ housing aspirations of generation rent”

house prices

A key change in the UK’s housing market over the past twenty years has been the growth of the private rented sector (PRS), with more living in the sector than ever before. This growth has led to the view that there is now a ‘generation rent’ who are priced out of home ownership and stranded in insecure short-term lets for prolonged periods of their lives – fuelling concerns about intergenerational inequality.

At a recent seminar, hosted by the Public Services and Governance research group at the University of Stirling, Dr Kim McKee, a co-investigator for The UK Collaborative Centre for Housing Research (CaCHE), presented the key findings from her research on ‘generation rent’ and precarity in the contemporary housing market.

Who are ‘generation rent’?

The UK 2011 Census highlighted that 40% of private renters were young people under the age of 35. With a challenging labour market, rising student debt and welfare reforms, home ownership and social housing is increasingly out of reach for these young people, who end up stuck private renting for much longer than the previous generation.

It was noted by Dr McKee that there is a clear age dimension to the recent shifts in housing tenure, but that the ‘generation rent’ label is more complex than portrayed. Income and family support were emphasised as just as critical in the understanding of young people’s experiences and future plans, as was geography.

Indeed, other research has highlighted that income and family background have a huge impact on young people’s housing market experiences. The Resolution Foundation’s recent report highlights that young people from wealthier families are more likely to become homeowners, suggesting that there are also intra-generational inequalities.

Dr McKee’s study focused on the inequalities facing these young people through qualitative research with 16 young people aged 35 and under living in the PRS in Scotland or England. Those on low incomes were explicitly targeted with the aim of giving them a voice, which was considered to be largely absent in previous research.

Aspirations vs expectations

There was a long-term aspiration for home ownership among the majority of participants, with a smaller number aspiring to social housing. But private renting was seen as the only short-term option as a host of challenges thwart them from realising their ambitions:

  • mortgage finance
  • family support
  • labour markets
  • student debt
  • welfare reform

The fact that housing tenure was highlighted by respondents rather than housing type or location, as previous research has highlighted, suggests there is a general dissatisfaction with living in the PRS. Indeed, it was noted that the PRS was discussed largely negatively, perceived as the ‘tenure of last resort’.

Despite the continued aspirations for home ownership, there was a marked difference between aspirations and expectations. There was a levelling down of expectations to own and a gap emerging between what the young people aspired to as their ideal and what they expected to achieve. A small minority even remarked that a more realistic goal may in fact be improvements in the PRS. The study showed that such expectations were due, mainly, to low earnings and insecure employment, combined with a lack of family financial support.

While the short-term nature of private renting makes it a very flexible rental option, it also makes it insecure and precarious, creating barriers for tenants who want to settle into a home and community. This is particularly worrying for families with children, who can be greatly affected by the upheaval of having to regularly move.

Emotional impacts

The study was particularly interested in the more intangible and emotional impacts on ‘generation rent’ and how the frustrations in realising their aspirations impacted negatively on their wellbeing.

It was stressed that issues in the PRS are having serious negative impacts on the wellbeing of young people – insecure, expensive and poor quality housing are contributing to depression, stress and anxiety. Moreover, for those on the lowest incomes, such issues are even contributing to homelessness.

Not only is mental wellbeing affected but their physical health has also been impacted by poor quality housing. Problems with rodents, damp and mould, broken white goods and poor quality accommodation in general were all reported by participants.

The experiences of the young people in the study were described as a “sad reflection of housing in the UK today” and raises questions over whether the PRS can really meet the needs of low income groups in particular.

Geography matters 

Another key finding was that where people live really matters, not only because of the spatial nature of housing and labour markets, but also as tenancy rights and regulations vary across the UK.

Recent reforms in Scotland have provided tenants with greater security of tenure and more predictable rent increases. England was highlighted as lagging behind the rest of the UK in terms of regulation and tenants’ rights as it lacks any national landlord registration scheme. Letting agent fees in England were also highlighted as a real issue in relation to affordability.

It was suggested that the rest of the UK could learn much from the Scottish experience, although there is a need to go further, particularly in relation to affordability.

Way forward

A key message from the study was that security of tenure really matters for those living in the PRS but reform of the housing system can only go so far. Participants identified more affordable housing, more protection for renters and income inequalities as areas where the government could intervene to improve things.

Based on the findings, six key policy recommendations were made:

  • ensure security of tenure;
  • take action on rents;
  • provide better education for tenants on their rights, and indeed for landlords;
  • provide more affordable housing; and
  • ensure greater understanding of intra-generational inequalities.

If the wider inequalities within society are also addressed, perhaps the PRS could become an aspiration rather than the ‘tenure of last resort’.


If you enjoyed reading this, you may also be interested in our previous posts on build to rent and meeting demand and improving data in the private rented sector.

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The ‘Netflix of transportation’ – could MaaS be the future of urban mobility?

digital city_unsplash

Congestion, air pollution, inadequate public transport services – these are just some of the issues cities around the world are having to try and mitigate.  Could Mobility as a Service (MaaS) be the solution?

A recent webinar presented on Intelligent Transport looked at the different approaches currently being proposed, discussing the various benefits they offer and the challenges they face.

What is MaaS?

Although MaaS is enabled by technology, it was made clear from the get go that it is fundamentally about the user perspective.

Keynote speaker, Jonathan Donavan, CPO of Masabi, highlighted one definition provided by University College London’s MaaS Lab:

“Mobility as a Service (MaaS) is a user-centric, intelligent mobility management and distribution system, in which an integrator brings together offerings of multiple mobility service providers, and provides end-users access to them through a digital interface, allowing them to seamlessly plan and pay for mobility.”

Essentially, MaaS aims to provide the convenience of a private vehicle without the need for ownership, making users’ lives easier.

From the user perspective, it has to make it easier to plan and pay for travel, match the right mode of transport for the journey, be cost-effective and provide complete journey coverage. From a city perspective, it has to move people away from private cars, keep the city moving, provide equitable service to riders and optimise transport resources.

Real world examples

In an attempt to address these needs, a number of pilots have emerged. These include: the Whim app in Finland, which has now expanded to projects in the UK and Europe; Transport for Greater Manchester; UbiGo in Gothenburg, which has expanded to Stockholm; and NaviGoGo, Scotland’s first MaaS web application, similar to UbiGo, which was piloted in Dundee – to name but a few.

Other examples of MaaS in practice, include: Uber, which is expanding its market by bringing different forms of transport onto the platform; Citymapper, a journey planning app bringing in different ways of paying for and commissioning your own travel; Transit App, a navigational app based in Montreal, Canada; and Kisio’s PlanBookTicket, a mobile ticketing solution.

Stephen Miller, the Communications Lead at Transit outlined the work they are doing. Transit provides navigational services getting people from A-B without their own car, shows nearby transport and other mode options, and can track buses and trains approaching in real time. It also includes bike share, car share, your own bike, walking and now scooters, showing how multiple modes can integrate. It is the number three navigation app in the US and Canada, after Google Maps and Waze.

With PlanBookTicket, Kisio has moved towards a one platform MaaS, as described by their Chief Product Officer, Laurent Leca. It covers the data platform, trip planner, booking and ticketing, and analytics. Providing a seamless user experience, it offers a full ticket range which can be purchased with or without an account and it enables flexible integration with the existing infrastructure, making it affordable for medium-sized cities.

These real world examples show that MaaS is about enabling a simple and combined experience. Such initiatives are a good example of how the public and private sector are working together by combining various transport options. Nevertheless, there are still issues that need to be addressed for MaaS to be a true success.

Subscription or account based MaaS

MaaS has been referred to as the ‘Netflix of transportation’. However, a digital platform is very different to providing physical services and there are a lot of different services available for providing transport. In consideration of what might be the best model for MaaS, two were discussed: subscription based and account based.

Subscription based benefits:

  • Commitment to package means usage of car may be reduced, therefore shifting behaviour
  • Potential to support initial pilots
  • Under-utilised subscriptions may have roll-over model to ensure passengers don’t miss out

However, various issues were also highlighted. For example, subscription based models could favour those who can afford to pre-pay for their transport; there are potential barriers in relation to which package is most suitable and the geography of services; and there are national constraints of supply and demand.

It was also noted that the subscription demographic is a very niche one that is already well served by a mix of mobility options, but it doesn’t cover everybody. It was therefore argued that there is a need to look at different options to make it more universal.

Unlike Netflix, there is finite capacity within the transportation system and a lot of transport systems are physically constrained by something.

It was therefore suggested that perhaps more of an ‘Amazon for transportation model’ is more appropriate, where users can pay as they go for the services they need when they need them. This paves the way for an account based model.

Account based benefits:

  • Puts the city at the centre of MaaS
  • Customer does not need to pre-select their package – lower barrier to entry, more flexibility for customer and city
  • Greater equity – pay for travel once consumed
  • Greater ability to link together transit, tolling, parking and other mobility solutions

It was suggested that this provides a much more holistic option.

Future of public transit

With the success of numerous pilots across the globe, and with 85% of transport professionals in the UK who responded to the Landor Links 2018 annual survey of Mobility as a Service perceiving MaaS as an opportunity and something that would improve matters, both socially and environmentally, MaaS may well be the future of urban mobility.

Perhaps one concern, as highlighted by the author of the survey, Beate Kubitz, is resistance among public transport operators, the very people that are expected to provide the services. They only made up 4% of responses to the survey. The reason cited was because they are concerned about the costs and don’t see the business case. The automotive industry on the other hand is moving towards cooperation and collaboration with MaaS. Clearly more work is needed to increase cooperation and collaboration among the public sector.

Nevertheless, as highlighted throughout the webinar, the fundamentals are there for MaaS to be a success.


If you enjoyed reading this, you may also be interested in our other posts on the potential of smart cities and lessons from public transport in Nordic countries.

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“The great British sell-off” – losing community assets to balance budgets

Since 2016, local authorities have been allowed to invest the proceeds of assets sold by April 2019 (now extended to 2021-22) into transforming frontline services, something they were previously prohibited from doing.  Following years of austerity and the extent of recent government funding cuts, it is not surprising that councils have used such money in this way.

However, the rate at which such assets are being sold has raised concerns over the potential loss of publicly-owned buildings and spaces.  Earlier this year, coinciding with the launch of their Save our Spaces campaign, Locality highlighted that on average more than 4,000 publicly owned buildings and spaces in England are being sold off every year – “more than four times the number of Starbucks in the UK.”

‘Financial predicament’

This year’s National Audit Office (NAO) report on the financial sustainability of councils highlights the financial predicament facing councils across the country. While it notes that the sector has done well to manage substantial funding cuts since 2010-11, financial pressure has increased markedly since 2014. In real terms, there has been a reduction in government funding of 49.1% since 2010, representing a reduction in local government spending power of 28.6%.

These cuts are coupled with rising demand for services and other cost pressures. For example, demand has increased for homelessness services and adult and children’s social care. The NAO highlights that from 2010-11 to 2016-17:

  • the number of households assessed as homeless and entitled to temporary accommodation under the statutory homeless duty increased by 33.9%;
  • the number of looked-after children grew by 10.9%; and
  • the estimated number of people in need of care aged 65 and over increased by 14.3%.

Other cost pressures have included higher national insurance contributions, the apprenticeship levy and the National Living Wage.

It is perhaps no shock that Northamptonshire county council became the first local authority since 1998 to be issued with a section 114 notice earlier this year, indicating it was unable to balance its books and at risk of being unable to set a legal budget for 2018/19. Nor is it indeed a shock that the NAO have identified other councils that are in danger of following suit in the next three years.

Despite this dire financial situation, it seems worse is to come. It has been recently announced that local services are to face a further £1.3bn cut in government funding in 2019/20. The revenue support grant, the main source of government funding for local services, will be cut by 36% next year – the largest annual deduction in almost a decade.

While the 2018 Budget has made provision for extra funding for adult social care, recent analysis suggests this falls short of what is needed to plug the projected funding gap.

Plugging the gap

In a desperate bid to raise finances, councils have been trying to find alternative income streams. A growing reliance on the use of reserves to offset funding reductions is an approach highlighted as unsustainable by the NAO. Most councils plan to increase or introduce charges for various services and many have also been making use of the government’s flexibility offer of using capital receipts to make improvements to services.

According to the NAO, in the year to April 2017, £118.5m of such capital receipts were used in this way. Locality has reported that the rate of asset sales has been consistently high for the last five years, with an average of 4,131 publicly owned buildings and spaces being sold off each year. Many councils are hoping to sell off their historic town halls to save much needed money. But it’s not just buildings that are under threat; council-owned parks and other land are also at risk. A recent parks survey, published by the Association for Public Service Excellence (APSE), found that 85% of councils surveyed expect a cut in parks and green space funding in the next year. In January, Knowsley council voted to go ahead with proposals to sell 10% of its parkland to fund the running of its remaining parks, since funding for its green spaces is to end in March 2019.

Locality warns that selling such assets on the open market could result in them being lost to the community forever as they have no real influence over what they will be used for; and could potentially lead to social, economic and environmental decline.

Indeed, concerns have been raised over the programme of disposing of council assets by Norfolk County Council, which has recently been reported to be looking to save £10m by selling its assets.

Locality suggests that community ownership is the answer to saving such assets under threat. Community Asset Transfer, set up in 2003, enables councils to sell assets to community organisations at below market rates in return for demonstrable community benefit.

In a bid to increase affordable housing supply, for example, Leicester City Council has sold council land worth more than £5m for less than £10 as part of deals with housing associations. However, the Locality report shows that less than half of councils have a Community Asset Transfer policy. It also notes that while community ownership is a ‘powerful alternative’ to losing public buildings and spaces, it is not straight forward, and community organisations face a number of barriers, including:

  • funding;
  • lack of expertise;
  • limited time; and
  • a lack of clear process.

With 95% of councils surveyed expecting the sell-off of publicly owned buildings and spaces to play an increasingly important role in the next five years, it is surely paramount that something is done to protect important community assets from being lost.

Way forward

Locality has called for the government to create a Community Ownership Fund and for a change in legislation to make it easier for community organisations to gain control of such assets.

Or perhaps councils could follow the example of others who, instead of selling their assets, are using them to generate revenue. Lewisham Council for example, is planning to raise £500k through hosting large commercial events in its parks.

Whatever route local authorities take, it remains to be seen if others will follow in the  footsteps of Northamptonshire or succeed in counteracting continuing cuts to maintain services and balance budgets; and indeed protect important community assets.


If you enjoyed reading this you may also like our previous blogs on the civic use of heritage assets and the value of green spaces.

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Open access is rapidly rising but is it succeeding?

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Image by PLoS via Creative Commons

In an increasingly digital world where accessibility is a common goal, it is no surprise that open access (OA) publishing is increasing at a rapid pace. For UK research, there has been particularly notable growth in OA adoption. In 2016, 37% of UK outputs (25% globally) were freely available immediately on publication, up from 20% in 2014. This figure reached 54% within 12 months of publication – the first time the 50% OA barrier has been breached for UK articles in the Scopus database (Elsevier’s peer-reviewed abstract and citation database).

These are among the findings of a recent report from Universities UK (UUK), Monitoring the transition to open access, which illustrates the growth in OA and its implications. While the advancement of OA is generally seen as a positive outcome, this transition is not without its challenges.

What is open access?

OA is fundamentally about making research outputs freely accessible to all with limited restrictions with regard to reuse.

There are two main routes to OA, as highlighted in the UUK report:

  • Gold or immediate OA – this refers to articles published in an OA form in a journal, allowing immediate access to everyone electronically and free of charge. Publishers can recoup their costs in various ways, including through payments from authors called article processing charges (APCs), or through advertising, donations or other subsidies.
  • Green OA – this refers to the posting of a version of the published article so that it is accessible via a website, institutional or subject repository, scholarly collaboration network or other service. Access to the publication can either be granted immediately or after an agreed embargo period.

OA articles can also be published in hybrid journals which are subscription-based but provide some articles as OA, usually for a fee. According to the UUK report, more than half of UK articles in 2016 were published in hybrid journals, the proportion of which were published on immediate Gold OA terms was 28% – up from just 6% in 2012.

Growth

The numbers and proportions of both OA and hybrid journals have continued to rise, while the proportion of subscription-only journals has fallen. The number of articles published on immediate Gold OA terms is also rising, with a high level of take-up in the UK of hybrid OA options. Particularly notable findings from the report include:

  • the proportion of titles published globally offering immediate OA rose from under 50% in 2012 to just over 60% in 2016; and to nearly 70% for journals in which UK authors have published;
  • the proportion of UK-authored articles published on immediate Gold OA terms rose from 12% in 2012 to 30% in 2016, an annual growth rate of over 30% sustained throughout the period;
  • the global proportion of subscription-based articles accessible in some version, on Green OA terms, within 24 months of publication via a non-publisher website, repository or elsewhere, rose from 19% in 2014 to 38% in 2016, while the UK proportion rose from 23% to 48%;
  • OA articles are downloaded on average between twice and four times as much as non-OA articles; and in the UK, where the numbers of full-text articles in UK repositories increased by more than 60% between 2014 and 2016, the number of article downloads more than doubled from 6 to 12 million.

The rapid rate of growth in the UK appears to demonstrate the effects of policies to promote and support OA. The government has long been committed to the transition to OA, particularly since the Finch Report, and these figures show that the UK is world leading in “a significant global movement which is fundamentally changing the way that research is conceived, conducted, disseminated and rewarded.” (UUK)

Rising costs

Most would argue such growth is a positive outcome but the rise in OA has also contributed to other issues, such as the transitional costs to universities and research funders. The findings show that costs are also rising, and at a rate significantly above inflation. The mean average APC payment rose by 16% between 2013 and 2016, compared with a rise of 5% in the Consumer Price Index (CPI).

And the number of APCs paid has grown rapidly, with the ratio between subscription and hybrid APC expenditure falling from roughly 19:1 in 2013 to 6:1 by 2016. There is evidence of various offsetting deals, although these vary significantly and can be complex. The majority of known funding for APCs has however been provided by UK funders. Therefore tools that help universities identify and manage funding, such as RESEARCHconnect, could become even more important.

Concerns have also been raised around the financial implications for learned societies that publish academic journals. Although the findings show that publishing revenues have risen steadily over the period (18%), publishing expenditure has risen by 27%, resulting in falling margins.

A mixed picture is highlighted in terms of societies’ overall financial health, with a sharp rise in the number reporting a loss, although some of the most recent losses arose from strategic decisions or exceptional items. Of course, OA is not the only factor and the wider economic and political uncertainties are recognised as particular risks.

To mitigate the financial risks, societies are diversifying their income streams which could strengthen their role. But despite publishing margins being under increasing pressure, the report identified no evidence of systemic risk to UK learned societies or their broader financial sustainability from OA.

Final thoughts

In terms of the aim of policy in the UK to achieve a shift towards OA, the fast-paced growth can be considered a success. However, as the UUK report shows, there are still a number of challenges that need to be addressed.

According to the Chair of the UUK Open Access Coordination Group, the continued engagement of all stakeholders will be important “to ensure that the transition to open access is maintained, is financially sustainable, and that the benefits to research and to society are maximised.”


RESEARCHconnect is Idox’s latest funding service which provides information on thousands of funding opportunities dedicated to the UK research community. It supports universities, research institutions and research-intensive companies across Europe in identifying and disseminating R&D funding. In the current economic climate, there is increasing pressure to exploit alternative funding sources and RESEARCHconnect ensures that global funding opportunities will not be missed. Find out more.

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Ten years on from Byron – are children any safer online?

“The rapid pace at which new media are evolving has left adults and children stranded either side of a generational digital divide.” (Professor Tanya Byron, 2008)

On examining the risks children face from the internet and video games, the Byron Review made 38 recommendations for the government, industry and families to work together to support children’s safety online and to reduce access to adult video games.

Ten years on, are children any safer online?

The National Society for the Prevention of Cruelty to Children (NSPCC) argues “there is still a great deal of work to be done”.

‘Failing to do enough’

The recommendations of the Byron Review were recently revisited by the NSPCC in its new report which reviewed the progress made in implementing them. Of the 38 recommendations, the report found that:

  • 16 were implemented (only 13 fully);
  • 11 were not implemented;
  • seven were partially implemented; and
  • for four recommendations, the landscape has changed too much to accurately judge.

Despite the changes in the political landscape and in technological developments, however, the NCPCC notes that the vast majority of the recommendations made in 2008 are still relevant and “urgently need to be addressed.”

Professor Byron herself stated in the foreword of the report that “much has changed over the last decade, but one thing has not: Government is failing to do enough to protect children online.”

Byron noted that, excluding the areas where the recommendations are no longer applicable, still 53% of her remaining recommendations “have either been ignored by Government or have only been partially followed through.”

In terms of the implications, social networks are left to make their own rules with no government regulation, online safety is not yet a compulsory part of the school curriculum and responsibility for child safety online falls heavily on parents who may lack understanding of latest trends, or even children who may not be equipped to make wise decisions – all findings similarly highlighted ten years ago. So what has changed?

Progress

The recommendations that were fully implemented include: tighter regulation of new forms of online advertising to children; a more consistent approach to age rating online games; and assessment of e-safety standards in schools as part of Ofsted inspections.

The UK Council for Child Internet Safety was also established as a result of the recommendations – the primary strategy objective. It has since produced various guidance documents for schools, parents and industry.

More recently, as part of the government’s Digital Charter, its forthcoming Internet Safety Strategy will introduce a social media code of practice and transparency reporting. Children are also to be given extra protection online under new data protection laws. Byron describes this as an important step but raises concern that the rules will not be directly enforceable. Moreover, the social media code is expected to be voluntary and does not include anti-grooming measures.

While a voluntary code of practice for websites was a key recommendation of the Byron Review in 2008, Byron has recently argued that “it is much too late for a voluntary code for social networks.”

Just before the NSPCC’s report, it was revealed that there had been more than 1300 grooming offences in the first six months since the Sexual Communication with a Child offence came into force, with almost two thirds of cases involving the use of Facebook, Snapchat or Instagram.

Benefits

Of course, technology has numerous benefits for children and young people. As Byron’s review highlighted, the internet and video games offer a range of opportunities for fun, communication, skill development, creativity and learning.

Digital technology can also be beneficial to children and young people who are disadvantaged. As UNICEF’s recent report – The State of the World’s Children 2017: Children in a digital world – argues:

“If leveraged in the right way and universally accessible, digital technology can be a game changer for children being left behind… connecting them to a world of opportunity and providing them with the skills they need to succeed in a digital world.”

Byron also highlighted the value technologies can have for children and young people living with disabilities that make living in the ‘offline’ world challenging.

As Byron suggested in 2008, what is needed is a balance between preserving the rights of children and young people to reap the enjoyment of the digital world and enhance their learning and development, and ensuring they (and indeed adults) are sufficiently informed to maintain safety.

Way forward

To ensure children have the same rights and security online as they have offline, the NSPCC is calling for:

  • a set of minimum standards and a statutory code of practice for online providers, underpinned by robust regulation;
  • greater transparency on data and information-sharing amongst industry; and
  • clear and transparent processes for reporting, moderating and removing content from sites, verifying children’s ages and offering support to users when needed.

To be effective, the NSPCC specify that these measures would need to be consistently applied to all sites, apps and games where children interact online.

Perhaps the government’s Internet Safety Strategy will introduce more stringent measures as highlighted by both Byron and the NSPCC which will go some way to making children safer in the digital world.

In the words of Byron, “The online world moves too fast for Government to drag its feet for another decade.”


If you enjoyed reading this, you may be interested in our previous posts on the impact of smart phones on young people’s mental health and what technology means for children’s development.

Follow us on Twitter to see what is interesting our research team.

It’s National Writing Day! But writing enjoyment is in decline, finds new survey

Today is National Writing Day, an annual celebration to inspire people across the UK to get writing. But this year’s annual literacy survey from the National Literacy Trust has found that children and young people’s enjoyment of writing and how often they write is in decline, suggesting that more action is needed to inspire this section of society.

Worryingly, the survey highlights that daily writing levels have been falling since 2014, and this year the Trust recorded the lowest levels of daily writing since they began asking this question in 2010 (27.0%).

What do the figures show?

Based on a survey of 47,786 children and young people aged 8 to 18 between November 2017 and end of January 2018, key findings include:

  • only half of children and young people enjoy writing very much or quite a lot (49.2%);
  • less than 1 child in 5 writes something that isn’t for school on a daily basis (17.3%);
  • more girls than boys enjoy writing (57.4% vs 40.9%) and write daily (19.9% vs 14.3%); and
  • younger children enjoy writing almost twice as much as their older peers (68.5% of 8 to 11-year-olds, 46.5% of 11 to 14-year-olds, 36% of 14 to 16-year-olds).

The percentage of children and young people who enjoy writing either very much or quite a lot decreased by 1.5 percentage points between 2016 and 2017/18, following the highest levels of writing enjoyment recorded in 2016.

Most children and young people do, however, write things on a regular basis with the use of digital technology. Most respondents said they write text messages (88.1%) and instant messages (77.8%) in their free time at least once a month, followed by short stories/fiction (44.1%) and song lyrics (35.8%). One in six children also engages in online fiction writing (such as Movellas, Wattpad) at least once a month.

This is perhaps no surprise, given the digital age we live in. However, concerns have been raised over the impact increasing use of digital technology is having on children’s ability to write. Could this be attributable, at least in part, to the declining enjoyment of writing?

Initiatives to inspire – can the World Cup help?

In an attempt to stem the decline and help inspire children and young people once again in the run up to National Writing Day, the Trust has launched a series of programmes. Drawing on the excitement surrounding the 2018 FIFA World Cup in Russia, a range of football-themed activities, competitions, teaching resources and lesson ideas have been created to boost literacy this summer. These include:

The hope is these activities will inspire more children and young people to get writing, both within the classroom and outside it.

Previous years’ activities that have drawn on the influence of football and major sporting events suggest that these activities may well achieve their aim. Following a writing competition around the Women’s FA Cup last year, teachers said their students’ enthusiasm for writing (80%), motivation to write (76%) and confidence in writing (68%) had improved.

Similarly, the Premier League Reading Stars (PLRS) programme has had a significant impact on pupils’ reading attainment. In Christ’s School in Richmond upon Thames, 80% of pupils made more than expected progress after taking part. Commenting on the success of the programme in Girlington Primary School in Bradford, Assistant Headteacher, Daniel Walker, noted:

 “Two boys made two sub levels of progress, which is the equivalent of more than a year’s expected progress in one term. One boy made dramatic progress of a whole level (3 sub-levels) in a term.”

Final thoughts

There is universal agreement that writing is important, particularly for young people, in terms of engagement and development. Even the respondents to the Trust’s survey agreed with statements highlighting the functional aspect of writing – 77.6% of children and young people agreed that writing will help them learn more and 74.7% agreed that the more they write, the better their writing becomes. Over half also agreed that they will get a better job if they are good at writing.

The fun aspect of writing, on the other hand, fared less well. Only 41.6% agreed that writing is fun, and only 34.0% agreed that writing is cool. Indeed, it has been argued that there is a need for greater emphasis on writing for pleasure. With their focus on the more fun aspects of writing, perhaps the recent programmes from the Literacy Trust and other similar programmes can help turn these statistics around.

And when next year’s National Writing Day comes around, hopefully we will be highlighting a rise in writing enjoyment.


If you enjoyed reading this, you may be interested in our previous post on writing and mental health.

Follow us on Twitter to see what developments in policy and practice are interesting our research team.