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Is Targeting Deprived Areas an Effective Means to Reach Poor People? An assessment of one rationale for area-based funding programmes

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  • Ruth Lupton
  • Rebecca Tunstall

Abstract

Area-based programmes have long been a feature of urban policy in the UK. One rationale is that they are an effective means to target poor people. Area deprivation indices are used to identify areas for targeting. This paper reviews the different results produced by these indices. It then examines the effectiveness of the current Index of Multiple Deprivation in targeting the poor, demonstrating that area targeting using the IMD 2000 is a more complete way of reaching the poor than has been claimed by opponents of area-based targeting in the past. However, it is more effective in reaching some sub-groups, particularly children, than others, and is also relatively inefficient. There is a trade off between efficiency and completeness. The use of area targeting should depend on the type of intervention, the costs and benefits of producing complex targeting mechanisms, and the particular balance between completeness and efficiency in each case.

Suggested Citation

  • Ruth Lupton & Rebecca Tunstall, 2003. "Is Targeting Deprived Areas an Effective Means to Reach Poor People? An assessment of one rationale for area-based funding programmes," CASE Papers 070, Centre for Analysis of Social Exclusion, LSE.
    • Handle: RePEc:cep:sticas:070
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    File URL: https://sticerd.lse.ac.uk/dps/case/cp/CASEpaper70.pdf
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    References listed on IDEAS

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    1. Garry Young, 1995. "The UK Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 152(1), pages 9-28, May.
    2. Gillian R Smith, 1999. "Area-based Initiatives: The rationale and options for area targeting," CASE Papers 025, Centre for Analysis of Social Exclusion, LSE.
    3. Garry Young, 2000. "The UK Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 171(1), pages 9-27, January.
    4. Garry Young, 1995. "The UK Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 153(1), pages 9-29, August.
    5. Garry Young, 2000. "The Uk Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 173(1), pages 12-31, July.
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    Cited by:

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    2. Sophie Donaldson, 2007. "Contested Governance and Definitions of Need in the Distribution of Funding: Investigating the Regeneration-Funding Paradox and the Role of UK National Lottery Funding in Regeneration," Environment and Planning C, , vol. 25(2), pages 212-232, April.
    3. Peter Batey & Peter Brown, 2007. "The Spatial Targeting of Urban Policy Initiatives: A Geodemographic Assessment Tool," Environment and Planning A, , vol. 39(11), pages 2774-2793, November.
    4. Walker, Ryan & Liddell, Christine & McKenzie, Paul & Morris, Chris, 2013. "Evaluating fuel poverty policy in Northern Ireland using a geographic approach," Energy Policy, Elsevier, vol. 63(C), pages 765-774.
    5. Alonso, José M. & Andrews, Rhys & Jorda, Vanesa, 2019. "Do neighbourhood renewal programs reduce crime rates? Evidence from England," Journal of Urban Economics, Elsevier, vol. 110(C), pages 51-69.
    6. Ruth Lupton & Anne Power, 2004. "What We Know about Neighbourhood Change: A literature review," CASE Reports casereport27, Centre for Analysis of Social Exclusion, LSE.
    7. Felix Richter, 2014. "Winner Picking in Urban Revitalization Policies: Empirical Evidence from Berlin," ERSA conference papers ersa14p1424, European Regional Science Association.
    8. Alex Fenton & Amanda Fitzgerald & Ruth Lupton, 2013. "Labour’s Record on Neighbourhood Renewal in England: Policy, Spending and Outcomes 1997-2010," CASE Papers case177, Centre for Analysis of Social Exclusion, LSE.
    9. Lupton, Ruth, 2005. "Changing neighbourhoods? Mapping the geography of poverty and worklessness using the 1991 and 2001 census," LSE Research Online Documents on Economics 27359, London School of Economics and Political Science, LSE Library.
    10. Lupton, Ruth & Fenton, Alex & Fitzgerald, Amanda, 2013. "Labour's record on neighbourhood renewal in England: policy, spending and outcomes 1997-2010," LSE Research Online Documents on Economics 58086, London School of Economics and Political Science, LSE Library.
    11. Alex Fenton & Amanda Fitzgerald & Ruth Lupton, 2013. "Labour's Record on Neighbourhood Renewal in England: Policy, Spending and Outcomes 1997-2010," CASE - Social Policy in a Cold Climate Working Paper 06, Centre for Analysis of Social Exclusion, LSE.
    12. David Clelland & Carol Hill, 2019. "Deprivation, policy and rurality: The limitations and applications of area-based deprivation indices in Scotland," Local Economy, London South Bank University, vol. 34(1), pages 33-50, February.
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    14. Tony Fahey & Michelle Norris & Desmond McCafferty & Eileen Humphreys, 2011. "Combating social disadvantage in social housing estates: the policy implications of a ten year follow up study," Open Access publications 10197/5561, Research Repository, University College Dublin.
    15. Gizachew Berhanu Gelet & Solomon Mulugeta Woldemichael & Ephrem Gebremariam Beyene, 2023. "The Spatial Pattern of Deprivations and Inequalities: The Case of Addis Ababa, Ethiopia," Sustainability, MDPI, vol. 15(3), pages 1-32, January.
    16. Tom Sefton, 2004. "A Fair Share of Welfare: Public Spending on Children in England," CASE Reports casereport25, Centre for Analysis of Social Exclusion, LSE.
    17. Smyth, Emer & McCoy, Selina & Kingston, Gillian, 2015. "Learning from the Evaluation of DEIS," Research Series, Economic and Social Research Institute (ESRI), number RS39.

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    More about this item

    Keywords

    area targeting; deprivation; area-based initiatives; neighbourhoods;
    All these keywords.

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General

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