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Poverty: Young People

Answer

The most common and internationally recognised threshold to measure poverty is income below 60 per cent. of median. Specific information regarding low income for the UK is available in ““Households Below Average Income 1994/95 to 2006/07””. This annual National Statistics publication includes the number and proportion of individuals, children, working age adults and pensioners with incomes below 50 per cent., 60 per cent. and 70 per cent. of median income, and the proportion in persistent poverty. Information covering 40 per cent. of median income is not a sound measure of poverty and is not included in the Households Below Average Income series. This is because households stating the lowest incomes to the Family Resources Survey may not actually have the lowest living standards. Many people who report very low incomes appear to have high spending. Hence, any statistics on numbers in this group may be misleading.The information is in the following table.

Number and proportion of 18 to 24-year-olds in households below 40 per cent. of median income
		Before housing costs	After housing costs
Coverage		Number below 40 per cent. of median income (Million)	Proportion below 40 per cent. of median income (Percentage)	Number below 40 per cent. of median income (Million)	Proportion below 40 per cent. of median income (Percentage)
GB	1997-98	0.2	5	0.6	12
	1998-99	0.2	5	0.5	11
	1999-2000	0.3	6	0.6	13
	2000-01	0.3	6	0.5	11
	2001-02	0.2	5	0.6	12
UK	2002-03	0.3	6	0.6	13
	2003-04	0.3	6	0.6	12
	2004-05	0.3	6	0.6	12
	2005-06	0.4	7	0.8	14
	2006-07	0.3	6	0.7	13
Notes:
1. These statistics are based on Households Below Average Income data.
2. Small changes should be treated with caution as these will be affected by sampling error and variability in non-response.
3. The reference period for Households Below Average Income figures is single financial years.
4. The Government's preferred measure of relative low-income poverty is defined as being in a household with a household income of less than 60 per cent. of contemporary median income. The figures used in this response, based on a threshold of 40 per cent. of contemporary median income are not National Statistics and caution must be applied because those people stating the lowest incomes in the Family Resources Survey may not actually have the lowest living standards.
5. The methodology of the “Households Below Average Income” series uses disposable household income, adjusted (or 'equivalised') for household size and composition, as an income measure as a proxy for standard of living.
6. The figures are based on OECD equalisation factors.
7. Figures have been presented on both a before housing cost and after housing cost basis. For before housing cost, housing costs (such as rent, water rates, mortgage interest payments, structural insurance payments and ground rent and service charges) are not deducted from income, while for after housing cost they are. This means that after housing cost incomes will generally be lower than before housing cost.
8. Numbers of 18 to 24-year-olds have been rounded to the nearest 100,000 individuals, while proportions of 18 to 24-year-olds have been rounded to the nearest percentage point.
Source:
Households Below Average Income, DWP.

Secondary information

Type

Written question

Reference

478 c1689-90W; 207144

Session

2007-08

Subjects

Poverty Young people

Link

View this Written question on www.publications.parliament.uk