New research from the Centre for Progressive Policy (CPP) and Local Trust calls for a dedicated plan for renewing England’s most struggling neighbourhoods.

In a new report, CPP and Local Trust reveal the extent of challenges faced by the 2.3 million people in England living in ‘doubly disadvantaged’ neighbourhoods.

‘Doubly disadvantaged’ neighbourhoods are those that face both high material deprivation and low levels of social assets (like community centres) and connectivity. They are found the length and breadth of England and over half (54%) of their adult residents are economically inactive or unemployed.

Following the Employment Rights Bill and ahead of the Budget and Spending Review, CPP and Local Trust argue that support for these communities should be a test case for the government’s approach to ‘fixing the foundations’ by tackling long term challenges.

Key findings of the research include:

• Residents in doubly disadvantaged areas face a ‘no jobs or bad jobs’ trap: economic output per person is less than half that of other deprived areas. New evidence shows how improvements in economic circumstances are less likely to ‘trickle out’ to these neighbourhoods from the wider economy. Nearly half of adult residents are economically inactive, and unemployment is higher than elsewhere.

• For those in work, low pay and insecure work are the norm – even compared to other deprived areas. The number of available jobs for the resident population is around 50% lower than in other deprived or non-deprived areas. And doubly deprived neighbourhoods rely disproportionately on low pay, low productivity routine jobs.

• This contributes to poor health outcomes: life expectancy and rates of preventable deaths are considerably worse in doubly disadvantaged areas. Between 2009 and 2019, life expectancy in doubly disadvantaged areas fell from 78.1 to 77.8 years, compared to a slight increase in non-deprived areas from 81.8 to 82 years over the same period.

• A lack of transport options to neighbouring areas further limits job access: transport to access jobs elsewhere is worse than in other areas, and the few available positions tend to offer low pay and poor conditions.

• Many residents are digitally excluded: 43.4% of these neighbourhoods are considered among the ‘least engaged with the internet’ - compared to 8.8% of places across England.

• Growth in doubly disadvantaged areas has been non-existent for decades. But investment in social capital can help turn the tide: original analysis in the report finds a consistently positive relationship between investment in social capital or social infrastructure and economic growth.

With an eye on the Spending Review in 2025, the report recommends putting doubly disadvantaged neighbourhoods at the heart of Whitehall’s drive for growth everywhere, and as a critical feature of new devolved powers for regional and local government.

CPP and Local Trust are calling for a renewal of neighbourhood policy, including:

1. The creation of a new Neighbourhoods Unit as part of the Office of the Deputy Prime Minister, to lead a national programme of neighbourhood renewal;

1. Rolling out a Community Wealth Fund to drive long-term investment in social infrastructure in doubly disadvantaged communities, and ringfencing a share of the next generation of devolved regeneration funding for those neighbourhoods.

1. Requiring Mayors to set out how they will support doubly disadvantaged neighbourhoods through their plans on skills, growth and transport.

Dan Turner, report co-author and Head of Research at CPP said:

“The last Labour government made a real difference in supporting neighbourhoods through their New Deal for Communities. Our research shows that the new government’s flagship plans – for devolution, growth, and a Plan to Make Work Pay – will not be enough to repeat the trick for England’s doubly disadvantaged communities.

"Without a clear strategy and funding to support neighbourhood renewal, the government will struggle to make good on its promise to deliver prosperity to every community."

Rachel Rowney, Local Trust COO said:

“Doubly disadvantaged neighbourhoods face profound challenges that are too often overlooked in national policy discussions. Without targeted, place-based interventions, these communities will continue to experience the vicious cycle of the ‘no jobs or bad jobs’ trap.

“Our recommendations provide a clear roadmap for government to not only support these areas but give local people the boost they need give them the means to thrive. It’s time for real, sustained action that tackles job inequality at its root.”