Photo: jacob christensen

East London has been hit harder by the recession than the rest of London, a new study has revealed.

Job Seekers Allowance claimants, unemployment and house repossession numbers have all increased in East London boroughs since 2007, London’s Poverty Profile has shown.

The report, published yesterday by the Trust for London and the New Policy Institute, focusses on the impact of the recession on the city.  The report  suggests that unemployment is likely to continue to rise affecting mainly young people. One in three of London’s unemployed population are aged under 25.  Those with no work experience, poor exam grades and from disadvantaged neighbourhoods are  particularly at risk.

According to the study, the borough of Tower Hamlets is one of the most vulnerable boroughs in the Inner East and South areas of London, coming amongst the four worst boroughs for both JSA and unemployment and with a high percentage of mortgage repossessions.

Along with Tower Hamlets, Hackney has the highest rate overall of JSA claimants, compared to the rest of London, with over 7% of people in both boroughs claiming JSA, compared to the London average of 4%.

The Poverty Profile comes in the week before the government releases its Spending Review, which will outline public spending plans for the next four years. In the foreword to the study, Peter Williams, chair of the Trust for London, writes:

“Whilst the recession has ended, its legacy has not and the full price for the financial crisis is yet to be paid. The Comprehensive Spending Review will result in significant public spending cuts… our key concern is that these do not fall disproportionately on the poorest and most marginalised.”