William Eichler 04 February 2020

Work alone cannot eliminate poverty, think tank says

Policy makers need to focus on further interventions to reduce poverty, think tank says as a new report warns that work alone cannot eliminate poverty.

A new study from the Resolution Foundation has found that poverty rates fall from 35% to 18% when people move into work.

However, it also discovered that sustained employment does not eliminate in-work poverty for many households.

Almost seven-in-ten working age adults living in poverty today either work or live in a household where someone else does. This is up from fewer than five-in-10 two decades ago.

Social housing tenants in work more than twice as likely to live in poverty (34%) than home owners and those in private rented accommodation (13%). Poverty rates fall from 68% to 31% for social renters when someone moves into work.

The report, entitled Working hard(ship), argues that employment cannot entirely protect people from poverty, and that the benefits system has a critical role to play in supporting in-work households.

A single parent with two children, for example, would have had to work 16 hours per week on the minimum wage to escape poverty if no benefit changes had happened since 2010. However, those benefit cuts mean that the same single parent now needs to work 23 hours per week to escape poverty.

Social renters face a higher poverty risk due to labour market disadvantages, according to the Resolution Foundation.

Almost one-in-four social renters say they work part-time because they cannot find a full-time job, compared to just over one-in-10 workers in other tenures. One-in-three social renters are in jobs paid at or very close to the minimum wage, compared to one-in-seven of those in other tenures.

The think tank urges firms and policy makers to introduce policy interventions, including better progression routes into higher paid work; more childcare support for parents keen to work more hours; more new affordable homes (including social housing); and, a benefits system that provides strong work incentives at the same time as offering adequate support for low-income working families.

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

Social Worker

London Borough of Richmond upon Thames and London Borough of Wandsworth
£40,260 - £54,507
Social Worker£... London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

SEND Inclusion Partner

Essex County Council
£44258.0000 - £52068.0000 per annum
SEND Inclusion PartnerPermanent, Full Time & Fixed Term, Full Time£46,861 to £52,068 per annum (full time equivalent)Location
Recuriter: Essex County Council

Customer Services Assistant - Dunmow Library

Essex County Council
Up to £25959.0000 per annum
Customer Services Assistant - Dunmow LibraryPermanent, Part TimeUp to £25,959 per annum (full time equivalent)Location
Recuriter: Essex County Council

Residential Childrens Homes Manager

Essex County Council
£55892.00 - £69241.00 per annum + + 8% on call allowance
Residential Childrens Homes ManagerPermanent, Full Time£55,892 to £69,241 per annum + 8% on call allowance Location
Recuriter: Essex County Council

School Business Manager 1

Durham County Council
£35,412 pro rata (pay award pending)
Required for 37 hours per week, term time only. Start date 2/11/26 but earlier start date could be arranged. West Rainton Primary School are seeking Durham
Recuriter: Durham County Council
Linkedin Banner