William Eichler 23 May 2017

In-work poverty hits record numbers, report reveals

Over half of those living in poverty in the UK live in a household where someone is in work, research reveals.

A report by Dr Rod Hick and Dr Alba Lanau from Cardiff University’s School of Social Sciences has found 60% of people in poverty are in working households - the highest figure recorded.

The research, which was funded by the Nuffield Foundation, found the risk of poverty for adults living in working households rose by more than a quarter (26.5%), from 12.4% to 15.7%, during the ten year period 2004/5 to 2014/15.

The findings suggest the number of workers in a household, and not low pay, is the primary determinant of in-work poverty.

‘There has been a lot of discussion recently about how increasing the minimum wage can help to reduce poverty,’ according to Dr Hick.

‘However, what our report finds is that less than half of adults experiencing in-work poverty have a low paid worker in their household, and most low paid workers live in non-poor households.’

Dr Hick said tackling in-work poverty required ‘re-thinking our approach’.

‘It’s about improving the circumstances of the whole household, not just those of an individual worker, and promoting employment is key,’ he noted.

The research found tax credits had been ‘quite highly effective’ in reducing in-work poverty. However, it discovered that through a combination of cuts and low take-up, less than half of working poor households receive them.

The report also found the rise in in-work poverty has been concentrated among households in the private rented sector and amongst social housing tenants.

‘Our research finds that housing costs are becoming an increasingly important factor in determining poverty rates amongst working families,’ said Dr Hicks.

‘If policy does not do more to tackle rising housing costs directly, then it seems likely that these will eat up gains made elsewhere – for example, in terms of the planned increases in the minimum wage.’

The report recommends the expansion of childcare opportunities to help families with children to take up additional paid employment and the reversing of tax credit cuts.

It also said tackling high housing costs would help alleviate the problem of in-work poverty.

SIGN UP
For your free daily news bulletin
Highways jobs

School Crossing Patrol Officer

Essex County Council
Up to £13.4600 per hour
School Crossing Patrol Officer Chelmsford, Essex Part-Time, Temporary 7.5 hours per week, term-time only Up to 6 Months £13.46 PAYE / £17.24 Umbrella England, Essex, Chelmsford
Recuriter: Essex County Council

Deputy Team Manager - Older Adults Mental Health

Essex County Council
£48205 - £57988 per annum + Flexible Working, Hybrid Working
Interviews will be held in person at Rowan House, Colchester on 6th May 2026.The TeamWe are a committed team working with adults aged 65 years plus a England, Essex, Colchester
Recuriter: Essex County Council

Executive Director Place, Economy and Environment

West Northamptonshire Council
£151,368 – £161,559 (pay award pending)
West Northamptonshire is an ambitious, fast‑growing place with a bold vision for inclusive and sustainable growth. Northampton, Northamptonshire
Recuriter: West Northamptonshire Council

Assistant Director Adult Social Care Operations

Buckinghamshire Council
Circa £92,000
Are you a credible, values-driven leader with the operational grip to deliver change? Buckinghamshire
Recuriter: Buckinghamshire Council

Chief Executive

Thurrock Council
c. £200,000
Lead the change, shape the future. West Thurrock, Grays
Recuriter: Thurrock Council
Linkedin Banner