By Vivienne Russell
13 September 2010
But there was an accompanying rise in the number of poor children living in working households. Of the 2.8 million children living in poverty in 2008/09, 1.7 million were in working households compared with 1.1 million in workless households.
More than half (60%) of working poor households have children, and more than 80% of these families have two parents, the IPPR says.
The think-tank notes that the rise in unemployment in the recession has been much lower than expected, with employers offering staff pay freezes and reduced hours rather than compulsory mass lay-offs.
But it says the downside to this was lower earnings for many people in work, contributing to high levels of in-work poverty.
IPPR director Nick Pearce said: ‘While unemployment increased by less than expected in the recession, these figures clearly show that being in work is no guarantee of being out of poverty.
‘When employment starts to recover, it is vital that we learn two fundamental lessons. First, we must tackle the cause of low pay and low productivity in the “pedestrian” sectors of our economy.
‘Second, we need to make it easier for more families to have two earners – by, for example, improving childcare and work incentives.’
Households and families are defined as poor if their income is less than 60% of the median income. In 2008/09, this was £244 a week, as the median income was £407.
13 September 2010
The recession has increased the number of working adults living in poverty, the Institute for Public Policy Research has revealed.
An IPPR analysis, published today, found that the number of working-age adults classified as ‘working poor’ rose by 200,000 to 3.4 million in 2008/09. There was no change to the number of out-of-work adults living in poverty.But there was an accompanying rise in the number of poor children living in working households. Of the 2.8 million children living in poverty in 2008/09, 1.7 million were in working households compared with 1.1 million in workless households.
More than half (60%) of working poor households have children, and more than 80% of these families have two parents, the IPPR says.
The think-tank notes that the rise in unemployment in the recession has been much lower than expected, with employers offering staff pay freezes and reduced hours rather than compulsory mass lay-offs.
But it says the downside to this was lower earnings for many people in work, contributing to high levels of in-work poverty.
IPPR director Nick Pearce said: ‘While unemployment increased by less than expected in the recession, these figures clearly show that being in work is no guarantee of being out of poverty.
‘When employment starts to recover, it is vital that we learn two fundamental lessons. First, we must tackle the cause of low pay and low productivity in the “pedestrian” sectors of our economy.
‘Second, we need to make it easier for more families to have two earners – by, for example, improving childcare and work incentives.’
Households and families are defined as poor if their income is less than 60% of the median income. In 2008/09, this was £244 a week, as the median income was £407.
