You are from Oz right ? Does this underclass exist there ?
Not really, no. Of course, we do have people who
live like this. Some of the remote Aboriginal communities are rife with socio-economic problems (usually alcohol, petrol sniffing, domestic violence and sexual abuse), as are some of the dodgier (white populated) suburbs.
But we don't have your massively concentrated population; we don't have your vast, sprawling council estates and tower blocks with hundreds of people living cheek by jowl; we don't have a list of large towns and small cities which relied on a single industry for one or two centuries and now lie mouldering because that industry has died off or moved on and nobody knows what to do with themselves anymore.
Much of your underclass has been created by a mixture of failed government policy (particularly those which have encouraged reliance on social benefits rather than personal responsibility), increasingly irresponsible social attitudes amongst the underclass, and the legacy of your infamous class system, which has always restricted social mobility, and still does. Add the pressure of social breakdown in the poorer communities, and social mobility grinds to a halt:
A report last year by the Organisation for Economic Cooperation and Development found that in the UK children struggle to escape the income levels of their parents more than in almost any other country in the group.
“There is less social mobility in the UK than in Australia, Canada and Denmark,” it said. “What your parents earned when you were a child has much more effect on your own earnings than in more mobile countries.”
(Source).
Unfortunately, the government seems to think that this problem is best addressed by throwing money at it. That is not the answer, as Australia has learned in her dealings with the Aborigines. You can't make everything better by trying to ensure that everyone earns the same amount of money, for example. And where is the incentive for improving oneself, if destructive social attitudes are no longer taboo? Where is the incentive to get a job, if government benefits pay the same or more than a minimum wage occupation?
Social problems are compounded by problematic social attitudes - and no amount of money will change social attitudes. Social problems resulting from problematic social attitudes are grassroots problems; they begin in the minds of the people suffering from them. That's where the work has to be done.