Income poverty
Key points
- Over the last decade, the rate of poverty in London has remained fairly static at 28% after housing costs (AHC) and 17% before housing costs (BHC). On the BHC measure, there is no difference between London and the rest of England. On the AHC measure, the difference is large and growing.
- Since the last report, and therefore during the recession, child poverty fell in London, but poverty among working-age adults rose. Pensioner poverty remained static.
- Poverty among children and pensioners has fallen in Inner and Outer London over the last decade. 38% of children in London are in poverty now compared to 41% at the end of the 1990s. The comparable figures for pensioners are 21% and 31%.
- Among working-age adults poverty has risen, as it has in the rest of the country. 26% of working-age adults in London are in poverty, compared to 24% a decade ago. While the level in Outer London is lower, the total rise in the capital is attributable to this region.
- Over half of working-age adults and children in poverty in London live in a household where someone is in paid work. One million people (330,000 children and 680,000 working-age adults) live in low-income working households.
- Within London, child poverty is much higher among the Inner London boroughs. The rate of child poverty in Tower Hamlets is five times that of Richmond.
- Poor children in London are more likely to lack everyday items than poor children outside London. This means that not only are more children in London poor, but their experience of living in poverty is harsher.
Find out more about Income poverty by visiting the indicators in this section, listed on the right.
How is poverty (low income) defined?
The measure of low income, or income poverty in this report is based on household income. This income is after council tax, income tax and national insurance have been deducted. A household is considered to be in income poverty if its income is below 60% of the national median. In doing so, it relates to the gap between the poorest and the middle, not the poorest and the richest. Using this measure, poverty is itself a type of inequality. There is no mathematical reason why any household should be below 60% of median, contemporary household income.
Clearly, this is a relative measure as the national median changes each year. But that is because poverty is inherently relative - it relates to the ability to participate in mainstream society, and afford the minimum standard of living that would constitute the norm. Recent research for the Joseph Rowntree Foundation found that, for many household types, the low-income threshold used on this site was lower than what most ordinary people would consider to be a minimum standard of living. Although only one measure, it is nevertheless a convenient proxy. We also include analysis of material deprivation - households that cannot afford to buy certain every day goods or services.
Low income thresholds in 2009/10
|
Low-income threshold Before Housing Costs |
Low-income threshold After Housing Costs |
|
|---|---|---|
|
Single adult |
£166 |
£124 |
|
Couple with no children |
£248 |
£214 |
|
Lone parent with two children under 14 |
£265 |
£210 |
|
Couple with two children under 14 |
£347 |
£300 |
Source: Households Below Average Income, Department for Work and Pensions, 2009/10
In 2009-10, the most recent year for which data is available, the low-income weekly thresholds for different household types are listed in the table. Below this figure a household is considered to be living in poverty.
Official statistics are calculated both before and after housing costs have been deducted from income (these comparisons are adjusted for the size and composition of the household).
Throughout this site, poverty is defined and measured for the household as a whole rather than for the individuals in it. If a household is in poverty, it means that all the individuals living in that household are also in poverty.
Topic:
Relevant Indicators
Glossary
Inner London:
Camden, Hackney, Hammersmith & Fulham, Haringey, Islington, Kensington & Chelsea, Lambeth, Lewisham, Newham, Southwark, Tower Hamlets, Wandsworth, Westminster
Outer London:
Barking & Dagenham, Barnet, Bromley, Bexley, Brent, Croydon, Ealing, Enfield, Greenwich, Harrow, Havering, Hillingdon, Hounslow, Kingston upon Thames, Merton, Redbridge, Richmond upon Thames, Sutton, Waltham Forest