Wales
Location of low income
Key points
- Data on rates of low income is not available at a sub-regional level. For people of pensionable age, the best sub-regional data relates to those in receipt of the guaranteed Pension Credit - and as this is a means-tested benefit available to most low-income pensioners, variations in its geographic prevalence should be a reasonably good proxy for variations in the geographic prevalence of low-income pensioners. For people of working-age, the only directly relevant data relates to those in receipt of out-of-work benefits - but as a) this does not include anyone who is in low income because they are low paid and b) it includes everyone in receipt of out-of-work disability benefits even though they are not means-tested, variations in its geographic prevalence are not necessarily a good proxy for variations in the geographic prevalence of low-income working-age people. For example, the proportion of low-income people who are in working families (as opposed to workless ones) is much higher in rural areas than in urban areas, at least in England (see the indicator on low income by work status in rural England). As a result, the relative ranking of rural areas by benefit recipiency will tend to place them lower in the rankings than would be the case for low income. With these caveats in mind, this indicator provides an analysis of the geography of benefit recipiency.
- The proportion of working-age people in receipt of out-of-work benefits has been coming down in all types of authority.
- Two-and-a-half times as many working-age people in Merthyr Tydfil and Blaenau Gwent are in receipt of out-of-work benefits as in Monmouthshire.
- Since 2000, the proportion of retired people in receipt of means-tested benefits has been rising in all types of authority.
- More people are in receipt of guaranteed Pension Credit in The Valleys than elsewhere but the differences are much less than for working-age people in receipt of out-of-work benefits.
Graph 1: Working-age over time
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Graph 2: Working-age by LA
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Working-age map
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Graph 3: Retired over time
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Graph 4: Retired by LA
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Retired map
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Definitions and data sources
There is no direct data on the location of low income people within Wales. In this context, this indicator looks at the location of people who are reliant on the state for their income.
The first and second graphs are concerned with the proportion of working-age people who are in receipt of one or more 'key out-of-work benefits'.
'Key out-of-work benefits' is a DWP term which covers the following benefits: Jobseeker's Allowance, Income Support, Incapacity Benefit, Severe Disablement Allowance and Carer's Allowance. Note that this list is slightly different from 'key benefits', which also include Disability Living Allowance.
The first graph shows the proportion of those of working age claiming at least one key out-of-work benefit. The data is shown separately for The Valleys, Cardiff and the rest of Wales. The data is for the month of February of each year.
The second graph shows, for the latest year, how the proportion of the working-age population who are in receipt of a key out-of-work benefit varies by local authority. The map shows the same data but by super output area.
The third and fourth graphs are concerned with the proportion of people aged 60 and over who are in receipt of the guaranteed part of Pension Credit and its predecessors (Minimum Income Guarantee and Income Support). This measure, rather than the broader measure of key benefits, is used because those in receipt of other benefits who have a low income will also be eligible for the guaranteed part of Pension Credit. The lower age limit of 60, rather than retirement age, is used because this is the age at which people become eligible for Pension Credit.
The third graph shows the number of people in receipt of the guaranteed part of Pension Credit and its predecessors as a proportion of all people aged 60 and over. The data is shown separately for The Valleys, Cardiff and the rest of Wales. The data is for the month of February of each year.
The fourth graph shows, for the latest year, how the proportion of people aged 60 and over in receipt of the guaranteed part of Pension Credit varies by local authority. The map shows the same data but by super output area.
The data source for all the graphs and maps is the DWP Work and Pensions Longitudinal Study. The data has been analysed to avoid double-counting of those receiving multiple benefits by matching data from individual samples. ONS population estimates have been used to calculate the proportions in the second and fourth graphs.
Overall adequacy of the indicator: high. The data is thought to be very reliable and is based on information collected by the DWP for the administration of benefits.