Wales Low income by age group |
Key points
- Up to 2005/06, the proportion of children living in low-income households (using the low-income threshold of the 60% of median income after deducting housing costs) had been falling. In 2006/07 and 2007/08, however, there were substantial increases. The net result is that, the average of 32% of children being in low-income households in 2005/06 to 2007/08 compares with 36% in 1995/96 to 1997/98.
- Children remain more much likely to live in low-income households than either working-age adults or pensioners.
- Up to 2004/05, the proportion of pensioners living in low-income households had been falling, but with no further falls since 2004/05. The net result is that, the average of 19% of pensioners being in low-income households in 2005/06 to 2007/08 compares with 27% in 1995/96 to 1997/98.
- Pensioners are now much less likely to be living in low-income households than non-pensioners.
- Until 2004/05, the proportion of working-age adults living in low-income households had been falling, although more slowly than that for either children or pensioners. Since 2004/05, however, the proportion has increased. The net result is that, the average of 22% of working-age adults being in low-income households in 2005/06 to 2007/08 is similar to that of a decade previously.
- A third (200,000) of those in low income are children, a quarter (150,000) are working-age adults with dependent children, a further third (200,000) are working-age adults without dependent children and the remainder (100,000) are pensioners.
Graph 1: Over time
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Graph 2: Shares
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Definitions and data sources
The first graph shows the risk of a person being in a low-income household, with the data shown separately for children, pensioners and working-age adults.
The second graph shows a breakdown of the people in low-income households according to whether they are children, pensioners, working-age adults with dependent children or working-age adults without dependent children. To improve its statistical reliability, the data is the average for the latest three years.
The data source for both graphs is Households Below Average Income, based on the Family Resources Survey (FRS). A child is defined as an individual who is either under 16 or is an unmarried 16- to 18-year-old on a course up to and including A level standard. Income is disposable household income after deducting housing costs and the low-income threshold is the same as that used elsewhere, namely 60% of British 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.
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
- See the DWP site with their annual Households Below Average Income reports.
- See the DWP site on benefit statistics.
- See the HM Revenue & Customs site on tax credit statistics.
- See the HM Revenue & Customs site on tax credits.
- See the DWP site on Pension Credit.