Poverty in the UK

Monitoring poverty and social exclusion 2013: JRF

  • Over the four years to 2011/12 median income fell by an unprecedented 8 per cent
  • Alongside the 13 million people in poverty in 2011/12 are a further two million with incomes that would have been low enough to count as poverty in 2007/08
  • Of the 13 million people in poverty around 6.7 million were in a family where someone worked.

Crisis hits the poor hardest

Crisis hits the poor hardest: OECD

  • Income inequality increased by more in the first three years of the crisis to the end of 2010 than it had in the previous twelve years
  • The welfare state has cushioned the blow for many but warns that further social spending cuts in OECD countries risk causing greater inequality and poverty in the years ahead
  • The richest 10 per cent of the population in OECD countries earned 9.5 times the income of the poorest 10 per cent in 2010, up from 9 times in 2007

European low-wage earners

Low-wage earners: Eurostat

  • One out of six employees in the EU27 was a low-wage earner in 2010
  • The proportion of low-wage earners among employees amounted to 17.0% in 2010 in the EU27
  • In the EU27 in 2010, 21.2% of female employees were low-wage earners, compared with 13.3% of male employees
  • In the EU27 in 2010, 29.0% of employees with a low education level were low-wage earners, compared with 19.3% of those with a medium level and 5.8% of those with a high level.

Living standards

Living standards, poverty and inequality in the UK: 2012 – IFS

  • Over the past fifty years, average household net incomes have grown by about 1.7% per year in inflation-adjusted terms
  • Average private incomes started falling in 2008-09
  • Average household pre-tax-and-benefit income fell over 7% between 2007-08 and 2010-11, after accounting for inflation
  • Income inequality in the UK fell sharply in 2010–11.