United Kingdom
Polarisation by housing tenure
Key points
- Half of all people in social housing are in low income compared to one in seven of those in other housing tenures (using the Government's main measure of low income, namely 60% of median income after deducting housing costs).
- The proportion of people in social housing who are on low incomes has fallen from 56% at its peak (in 1996/97) to 47% in 2004/06.
- In two-thirds of households in social housing, the head of household is not in paid work. This compares to a third for heads of other households. This situation has remained unchanged throughout the last decade.
- The differences are substantially greater than 20 years ago: in 1981, the head of the household was not in paid work in 'only' half of households in social housing.
- Half of heads of households aged between 25 and 54 in social rented housing are not in paid work compared to just one in twenty of those in owner-occupation.
- Four-fifths of heads of households in social housing in Northern Ireland are not in work, more than in any other part of the UK. By contrast, the proportion of non-working head of households in other tenures in Northern Ireland is similar to the UK average.
Graph 1: Over time (income)
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Graph 2: Over time (work)
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Graph 3: By age group
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Graph 4: By region
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Why this indicator was originally chosen
The growth of owner occupation, although it has spread home owning across the income distribution as a whole, has nevertheless left a larger proportion of the poorest, and particularly those without paid work, in social housing. Some of worst affected estates now have unemployment rates three times above the average. Hills (1998) The State of Welfare. This indicator reflects that polarisation.
The indicator is only a partial measure of polarisation; for example, low income ethnic minority groups and those with disabilities are not so concentrated in social housing; Lee and Murie (1997) Area Measures of Deprivation, Joseph Rowntree Foundation. and there is also considerable local variation within the social rented sector. Even so, the degree of polarisation between different tenures at the national level is now very marked, in contrast to 20 years ago.
Definitions and data sources
The first graph shows the proportion of people in low income households for people in social housing compared to people in other housing tenures.
The data source for the first graph is Households Below Average Income, based on the Family Resources Survey (FRS). For 2002/03 onwards, the data relates to the United Kingdom whilst the data for earlier years is for Great Britain (FRS did not cover Northern Ireland until 2002/03). 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 data is equivalised (adjusted) to account for differences in household size and composition. The self-employed are included in the calculations. 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 second graph shows the proportion of households where the 'household reference person' (the person with the highest income in the household More specifically, the household reference person is the householder, i.e. the person who: a) owns the household accommodation, or b) is legally responsible for the rent of the accommodation, or c) has the household accommodation as an emolument or perquisite, or d) has the household accommodation by virtue of some relationship to the owner who is not a member of the household. If there are joint householders the household reference person will be the one with the highest income. If their income is the same, then the eldest householder is taken.) is not in paid work, with the data shown separately for households who are social renting and households in other housing tenures.
The third graph provides, for the latest year, a breakdown by age group.
The fourth graph provides a breakdown by region. To improve its statistical reliability, the data is the average for the latest three years.
The data source for the second, third and fourth graphs is the Labour Force Survey (LFS) and relates to the United Kingdom. The figures for each year are the average for the four quarters of the relevant year. Note that the data for 1981 is for Great Britain only.
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.
External links
- For a wide-ranging discussion of all aspects of housing, including its links with poverty, see the New Policy Institute 2006 report for the Joseph Rowntree Foundation entitled Housing and neighbourhoods monitor.
- See the DWP Employment Zones site and the DCLG Neighbourhood Renewal site.
Relevant 2007 Public Service Agreements
None directly relevant.
Relevant government policies
- Single regeneration budget / regional development agencies single programme
- Employment zones
- New deal for communities
- National strategy for neighbourhood renewal
- Sustainable communities plan
The numbers
Graph 1
| Proportion of households who are in low income | ||
|---|---|---|
| Year | Households renting from a council or housing association | Other households |
| 1994/95 | 51% | 17% |
| 1995/96 | 51% | 17% |
| 1996/97 | 56% | 17% |
| 1997/98 | 54% | 17% |
| 1998/99 | 55% | 17% |
| 1999/00 | 54% | 17% |
| 2000/01 | 54% | 16% |
| 2001/02 | 52% | 16% |
| 2002/03 | 52% | 16% |
| 2003/04 | 49% | 15% |
| 2004/05 | 47% | 15% |
| 2005/06 | 47% | 17% |
Graph 2
| Proportion of heads of household who are not in paid work | ||
|---|---|---|
| Year | Social renters | Other households |
| 1981 | 52% | 33% |
| 1997 | 71% | 36% |
| 1998 | 71% | 36% |
| 1999 | 70% | 36% |
| 2000 | 69% | 36% |
| 2001 | 69% | 36% |
| 2002 | 70% | 36% |
| 2003 | 70% | 36% |
| 2004 | 69% | 36% |
| 2005 | 69% | 36% |
| 2006 | 68% | 33% |
| 2007 | 67% | 33% |
Graph 3
| Proportion of heads of household who are not in paid work | |||
|---|---|---|---|
| Age group | Social renters | Private renters | Owner occupiers |
| Aged under 25 | 62% | 38% | 8% |
| 25 to 54 | 50% | 21% | 5% |
| 55 to pensionable age | 62% | 37% | 28% |
Graph 4
| Proportion of heads of household who are not in paid work | ||
|---|---|---|
| Region | Social renters | Other households |
| East | 64% | 32% |
| East Midlands | 67% | 33% |
| London | 64% | 28% |
| North East | 74% | 36% |
| North West | 73% | 35% |
| Northern Ireland | 78% | 35% |
| Scotland | 67% | 33% |
| South East | 62% | 32% |
| South West | 66% | 36% |
| Wales | 73% | 40% |
| West Midlands | 69% | 34% |
| Yorkshire and The Humber | 73% | 34% |