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

Governance Officer - Basildon Borough Council

Essex County Council
Up to £20.3700 per hour
Governance Officer - Basildon Borough CouncilBasildon, Essex £20.374 PAYE / £26.129 UmbrellaTemp-to-Perm36.25 Hours per Week Closing Date
Recuriter: Essex County Council

Service Manager – Experts at Hand

Wigan Council
£68,885- £70,904
You will play a central part in delivering our boroughwide Progress with Unity movement Wigan, Greater Manchester
Recuriter: Wigan Council

Educational Psychologists

Wigan Council
£53,554 - £63,638
Would you like to join a forward-thinking and supportive team of Educational Psychologists committed Wigan, Greater Manchester
Recuriter: Wigan Council

Senior Educational Psychologist

Wigan Council
£65,423 - £68,884
Would you like to join a forward-thinking and supportive team of Educational Psychologists committed t Wigan, Greater Manchester
Recuriter: Wigan Council

Assistant Educational Psychologist

Wigan Council
£37,265- £41,616
We are looking to recruit two 2-year fixed-term, full-time Assistant Educational Psychologists Wigan, Greater Manchester
Recuriter: Wigan Council
Linkedin Banner