Social Justice

Report reveals record levels of in-work poverty in the UK

New study find 60 per cent of people in poverty are part of working families, as researchers point to problems coping with housing costs

Decades of political rhetoric about “scroungers” living on the dole means poverty is now synonymous with unemployment.

But more than half of people living in poverty in the UK – 60 per cent – live in a household where someone is working, according to a new report by Cardiff University researchers.

The study sheds new light on the growing problem of in-work poverty. The evidence shows that the likelihood of adults experiencing poverty while living in working households has risen by just over 25 per cent in the past decade.

Researchers at Cardiff’s School of Social Sciences say families with only a single earner are more likely to experience hardship.

Jeremy Corbyn has promised a Labour government would raise the minimum wage to £10 an hour to try to tackle low rates of pay, while the Conservatives plan to raise it to £8.75 by 2020.

But while low pay is part of the problem, it is not the sole factor, according to the new report. Rising housing costs are also part of the complex picture when it comes to in-work poverty.

“Our research finds that housing costs are becoming an increasingly important factor in determining poverty rates amongst working families,” said Dr Hick.

“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.”

Tackling in-work poverty requires rethinking our approach

The study also found the tax credits set up by Gordon Brown when he was Chancellor under the previous Labour government had been “quite highly effective” in helping address in-work poverty.

The Cardiff University report recommends reversing cuts to tax credits; helping families with children to take up additional work by offering more affordable childcare; and tackling the high housing costs experienced by families, particularly in the private rented sector.

“Tackling in-work poverty requires rethinking our approach: it’s about improving the circumstances of the whole household, not just those of an individual worker, and promoting employment is key,” said Dr Hick.

Support the Big Issue

For over 30 years, the Big Issue has been committed to ending poverty in the UK. In 2024, our work is needed more than ever. Find out how you can support the Big Issue today.
Vendor martin Hawes

Recommended for you

View all
Will free school meals and vouchers be offered over the Easter holidays?
Free school meals/ Easter holidays
Free school meals

Will free school meals and vouchers be offered over the Easter holidays?

Council tax is going up for millions in April. Here's what to do if you're struggling to pay
council tax/ houses
Cost of living crisis

Council tax is going up for millions in April. Here's what to do if you're struggling to pay

Water bills are going up in April 2024. Here's what to do if you're struggling to pay
Cost of living crisis

Water bills are going up in April 2024. Here's what to do if you're struggling to pay

Care worker faced homelessness as low pay left her with 'nothing' to fall back on
social care/ abbie bowler
Social care

Care worker faced homelessness as low pay left her with 'nothing' to fall back on

Most Popular

Read All
Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits
Renters: A mortgage lender's window advertising buy-to-let products
1.

Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal
Pound coins on a piece of paper with disability living allowancve
2.

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal

Here's when UK households to start receiving last cost of living payments
next dwp cost of living payment 2023
3.

Here's when UK households to start receiving last cost of living payments

Strike dates 2023: From train drivers to NHS doctors, here are the dates to know
4.

Strike dates 2023: From train drivers to NHS doctors, here are the dates to know