United Kingdom
Working-age adults in low income
Key points
- At around a fifth in 2007/08, the proportion of working-age adults who are in low-income households is now slightly higher than during the period 1994/95 to 2004/05.
- inner London has a somewhat higher proportion of working-age adults in low-income households than any other region (26% compared with an average for the United Kingdom as a whole of 21%).
- See the indicators on low income by work status, low income by disability and low income by age.
Graph 1: Over time
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Graph 2: By region
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Why this indicator was originally chosen
Whilst the government has targets for reducing the prevalence of low income among children, it has no equivalent targets for working-age adults (except to the extent that they are parents). There is therefore a danger that government policy neglects the issue of low-income among working-age adults.
Definitions and data sources
The first graph shows the risk of a working-age adult being in a low-income household.
The second graph shows how the risk of working-age adults being in low-income households varies by region.
The data source for both graphs is Households Below Average Income, based on the Family Resources Survey (FRS). Income is disposable household income after deducting housing costs and the low-income threshold is the same as that used elsewhere, namely 60% of contemporary median household income. All the data is equivalised (adjusted) to account for differences in household size and composition. The self-employed are included in the statistics. Note that in 2007 DWP made some technical changes to how it adjusted household income for household composition (including retrospective changes) and, as a result, the data is slightly different than previously published figures. The averaging over three-year periods has been done to improve statistical reliability.
Overall adequacy of the indicator: high. The FRS is a well-established annual government survey, designed to be representative of the population as a whole.
Relevant 2007 Public Service Agreements
Overall aim: Halve the number of children in poverty by 2010-11, on the way to eradicating child poverty by 2020.
Lead department
HM Treasury.
Official national targets
Reduce by a half the number of children living in relative low-income by 2010/11.
Other indicators of progress
Number of children in absolute low-income households.
Number of children in relative low-income households and in material deprivation.
Previous 2004 targets
Halve the number of children in relative low-income households between 1998/99 and 2010/11, on the way to eradicating child poverty by 2020, including:
- reducing the proportion of children in workless households by 5% between spring 2005 and spring 2008; and
- increasing the proportion of parents with care on Income Support and income-based Jobseeker's Allowance who receive maintenance for their children by 65% by March 2008.
Relevant government policies
The numbers
Graph 1
| Year | Working-age adults | ||
|---|---|---|---|
| All | With dependent children | Without dependent children | |
| 1994/95 | 20% | 26% | 17% |
| 1995/96 | 20% | 26% | 16% |
| 1996/97 | 21% | 27% | 17% |
| 1997/98 | 20% | 26% | 16% |
| 1998/99 | 20% | 26% | 15% |
| 1999/00 | 20% | 26% | 16% |
| 2000/01 | 19% | 25% | 16% |
| 2001/02 | 19% | 24% | 15% |
| 2002/03 | 19% | 24% | 16% |
| 2003/04 | 19% | 23% | 16% |
| 2004/05 | 19% | 23% | 16% |
| 2005/06 | 20% | 25% | 18% |
| 2006/07 | 20% | 25% | 18% |
| 2007/08 | 21% | 26% | 18% |
Graph 2
| East | 18% |
|---|---|
| East Midlands | 20% |
| inner London | 26% |
| outer London | 23% |
| North East | 23% |
| North West | 22% |
| Northern Ireland | 18% |
| Scotland | 19% |
| South East | 17% |
| South West | 18% |
| Wales | 22% |
| West Midlands | 23% |
| Yorkshire and The Humber | 21% |