Families receiving in-work benefits in London
Key points
- Four times as many families receiving in-work benefits are in the Inner East & South of London (105,000 – 31%) than in the Inner West (26,000 – 8%).
- In Outer London the proportion of families receiving tax credits is larger than those receiving out-of-work benefits.
Here we look at benefits that supplement working income: the Child and Working Tax Credits (CTC and WTC). Families who only get the near-universal family element of child tax credit are excluded, as this is paid to all except the 10% of families with the highest incomes. The figures also exclude those families who receive tax credits but are not working.
What does the piechart show?
The piechart looks at how the total number of families receiving tax credits in London is spread out across the five sub-regions.
335,000 households in London were receiving tax credits in 2009. About two-fifths are in Inner London but four times as many are in the Inner East & South (105,000 – 31%) as in the Inner West (26,000 – 8%). This far exceeds the difference in population size of London's two Inner sub-regions, reflecting how prevalent low pay is in the Inner East & South areas.
The pattern is slightly different from that for out-of-work benefits. A larger proportion of tax credit recipients live in Outer London than do out-of-work benefit recipients (60% compared to 54%). One-quarter of all tax credit recipients are in the Outer East & North East.
Data used
Geographic Analyses, HM Revenue & Customs 2009
Indicator last updated: 9 September 2010
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Glossary
Low pay:
The most commonly used threshold is 60% of median male full-time hourly earnings. This was £7.50 in 2008 and is the threshold used throughout this website.
In-work tax credits:
Child and Working Tax credits (CTC and WTC)
CTC is a means-tested payment for people with dependent children, whether in or out of work. However, this analysis only uses the part payable to families in-work.
WTC is a means-tested payment for working people on a low income
Adapted from http://www.taxcredits.inlandrevenue.gov.uk
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