William Eichler 19 July 2016

Working poor the ‘new face of poverty in the UK’

The ‘new poor’ tend to live in households where there is someone in work, IFS study reveals.

A new report on poverty and inequality by the Institute of Fiscal Studies shows that only a third of children below the government’s absolute poverty line now live in a workless household.

Living standards, poverty and inequality in the UK: 2016 found that more people are in work than ever before, but income growth has been poor to non-existent.

Median income overall has moved 2% above pre-crisis (2007–08) levels, the IFS said, but for adults aged 31 to 59 it is at its pre-crisis level and for those aged 22 to 30 it is still 7% lower.

Middle income families with children now more closely resemble poor families than in the past, the IFS found.

Half are now renters rather than owner occupiers and, while poorer families have become less reliant on benefits as employment has risen, middle- income households with children now get 30% of their income from benefits and tax credits—up from 22% 20 years ago.

Inequality has decreased in recent years, the report revealed, due mainly to strong employment growth and weak earnings growth. Since 2011–12, falls in household worklessness and increases in the number of second earners both mainly boosted the incomes of poorer households. But weak pay growth has held back the incomes of higher income households.

The Joseph Rowntree Foundation (JRF) describes the report as ‘a stark picture of the new face of poverty in the UK.’

‘Falling unemployment has helped many families to keep their heads above the water, but slow wage growth, benefit squeezes and rises in the cost of essentials means there are still a shamefully high number living in poverty in the UK today.’ they said.

‘The fact that an increasing number of people in work are living in poverty shows that we need urgent, wide-ranging action to make a real difference in the living standards of low income households.’ JRF calls on politicians to work with businesses, individuals and local communities to tackle the UK’s poverty problem.

‘Better pay and job security, improving skills and lowering costs such as childcare and housing would go a long way towards raising the living standards of those currently struggling to get by.’ they added.

SIGN UP
For your free daily news bulletin
Highways jobs

Head of Corporate Development

Devon & Cornwall Police
Starts at £75,201 rising by yearly increments to a maximum of £84,534 per annum
We are welcoming applications for the role of Head of Corporate Development with Devon & Cornwall Police based at Exeter Devon
Recuriter: Devon & Cornwall Police

Payroll Project Specialist

Essex County Council
Up to £148.8800 per day
Payroll Project Specialist x2£148.88 PAYE / £193.782 Umbrella daily rate Up To 6-Month Fixed Term (with potential extension) Essex County Council - England, Essex, Chelmsford
Recuriter: Essex County Council

Senior Business Development Officer (MaaS)

Essex County Council
£36341.0000 - £42754.0000 per annum
Senior Business Development Officer (MaaS)Fixed Term, 2-year contract with potential for extension Full Time, 37 hours per week£36,341 to £42,754 per England, Essex, Chelmsford
Recuriter: Essex County Council

Senior Finance BP - Epping Forest District Council

Essex County Council
Up to £55307.0000 per annum
Senior Finance Business Partner - Epping Forest District CouncilFull-Time, Permanent 37 Hours per Week £55,307 + £10,000 Market Supplement Closing Dat England, Essex
Recuriter: Essex County Council

Mechanical Design Engineer

Durham County Council
Career Grade 9 to 12 (G9 £35,412 - £39,152) (G10 £38,220 - £41,771) (G11 £40,777 - £45,091) (G12 £44,075 - £48,226) per annum
The Construction Consultancy Services (CCS) team provide client-side construction consultancy services across a range of professional disciplines to d Durham
Recuriter: Durham County Council
Linkedin Banner