London's low income population

Key points

  • Over the past decade, London has seen a slight rise in the total number of people in low-income households, from around 2 million to around 2.1 million.
  • At the same time, the picture within London has changed substantially: the number of people in Inner London in low-income households has fallen, whilst the number in Outer London has risen.
  • In Outer London, the number of working-age adults in low-income households now stands at 670,000, up from 520,000 at the end of the 1990s.

London's low income population by age

What does this graph show?

This graph looks at how the composition of the low-income population has changed in London over the last ten years.

London has seen a slight rise in the total number of people in low-income households, from around 2 million to around 2.1 million. The rise is quite small, and must be considered against a rising population, but the composition of the low-income population has changed quite substantially. Most notably, the number of people in Inner London living in low-income households has fallen, whilst the number in Outer London has risen. Outer London now has over half (56%) of London's low-income population, up from 54% since the last Poverty Profile was published. At the end of the 1990s the numbers were more evenly split between Inner and Outer London.

The 260,000 children in poverty in Inner London represent a fall of around 70,000. In Outer London, the number has actually grown by 30,000 to 370,000. So while there are now fewer children in poverty than there were at the turn of the decade, this is entirely due to the fall in Inner London.

There are also fewer pensioners in poverty than there were ten years ago. The number of pensioners in low-income households fell in Inner London from 150,000 to 90,000 and in Outer London from 170,000 to 140,000. So the fall in Inner London was much steeper.

For working-age adults, though, the numbers in poverty have grown in both Inner and Outer London. In Inner London, there are now 560,000 working-age adults in low-income households, up from 510,000 a decade ago. This may seem odd in the light of the falling rate of working-age poverty in Inner London observed above, but Inner London's working-age population has risen substantially over the same period, from approximately 1.7 million to approximately 2 million. This growth in the population has more than counteracted the reduction in poverty rate, meaning the number of working-age adults in poverty actually rose.

In Outer London, the number of working-age adults in low-income households now stands at 670,000, up from 520,000 at the end of the 1990s. This increase is a combination of both a growing population and an increasing poverty risk.

This rise in working-age poverty reflects national trends - whilst child and pensioner poverty have fallen across the UK in the last decade or so, working-age poverty has risen everywhere. Because of this rise, there were more people in poverty in London at the end of the 2000s than there were at the beginning.

There are, though, fewer people living in low-income households in Inner London. This fall, combined with the large rise in working-age poverty and the smaller rise in child poverty in Outer London, means that more people live in low-income households in Outer London than Inner London.

Data used

Households Below Average Income (HBAI) Survey, DWP, average for 1997/98 to 1999/2000 and 2006/07 to 2008/09

Indicator last updated: 8 October 2010

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Glossary

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

Inner London:

Camden, Hackney, Hammersmith & Fulham, Haringey, Islington, Kensington & Chelsea, Lambeth, Lewisham, Newham, Southwark, Tower Hamlets, Wandsworth, Westminster

Read all glossary definitions

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