---

Dept for Work and Pensions

Answer

Mr. Willetts: To ask the Secretary of State for Work and Pensions what estimate he has made of the number of children in households with incomes below 60 per cent. of median income (a) before and (b) after housing costs (i) on the old equivalence scale and (ii) on the proposed new equivalence scale in the latest year for which figures are available. [177557] Mr. Pond: The information is in the following table. Number of children below various thresholds of contemporary income in 2002-03 _________________________________________________________________________________________________. Number (million) McClements Equivalisation (60 per cent. median) Before Housing Costs 2.6 After Housing Costs 3.6 OECD Equivalisation (60 per cent. median) Before Housing Costs 2.9 _________________________________________________________________________________________________. Notes: 1. The Households Below Average Income (HBAI) presents statistics on the proportion of children in low income households on both the McClements and modified OECD equalisation scales. 2. The modified OECD equivalence scale focuses on income before housing costs. We are adopting this income equalisation scale for the new long-term child poverty measure from 2004-05 so we can credibly benchmark our performance internationally. 3. The existing PSA to reduce by a quarter the number of children living in low income by 2004-05 uses the McClements Equivalence scale, and reports both before and after housing costs. 4. The Government recognises the continuing interest in results for income after housing costs. HBAI, a National Statistics publication, will continue to publish results both for income before housing costs, and for income after housing costs. These will also continue to be published in "Opportunity for all". Copies of both documents are available in the Library. Source: Family Resources Survey.

Secondary information

Type

Written question

Reference

177557; 422 c475-6W;422 c476-7W

Session

2003-04

Subjects

Children Costs Housing Families Households Income Personal income Poverty

Contains statistics

Yes

Link

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