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.

Skills Pipelines: What local government needs to know image

Skills Pipelines: What local government needs to know

Councils and mayors are to be handed a central role in developing skills pipelines for local industries, as the Government unveils what it calls a ‘fundamental change’ to the education system aimed at tackling youth unemployment. Here's what council leaders and officers need to know.
SIGN UP
For your free daily news bulletin
Highways jobs

Wellbeing, Public Health and Communities Officer

Essex County Council
£30049 - £35351 per annum + Flexible Working, Hybrid Working
This is a fixed term contract or secondment opportunity for up to 19 months.Interviews will be held on Thursday 26th August 2026.The TeamBring your p England, Essex, Chelmsford
Recuriter: Essex County Council

Homelessness Prevention and Solutions Officer (Early Help Team)

London Borough of Richmond upon Thames and London Borough of Wandsworth
£38,976 - £47,229 per annum
Job Title
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Practice Leader

Royal Borough of Greenwich
PO6 - £54,267 to £57,402
You will combine leadership responsibilities providing supervision, guidance and support to colleagues London (Greater)
Recuriter: Royal Borough of Greenwich

Adults Social Worker - Harlow North & South Neighbourhood Team

Essex County Council
£36124 - £51834 per annum + Flexible Working, Hybrid Working
Please note that visa sponsorship is not available for this role. Applicants must have a current, unrestricted right to work in the UK.This advert is England, Essex, Harlow
Recuriter: Essex County Council

Occupational Therapist

Durham County Council
Grade 11 - £40,777 - £45,091 p.a (Post-progression) - Pay award pending.
The successful candidate will become part of a highly motivated and successful Occupational Therapy Service within County Durham. This post is perman Spennymoor
Recuriter: Durham County Council
Linkedin Banner