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Relative income poverty statistics: headline figures, financial year ending 2018

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Relative income poverty and Material deprivation and persistent poverty.

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Relative income poverty statistics: headline figures, financial year ending 2018

  1. 1. Relative income poverty Headline figures Financial year ending 2018
  2. 2. What is relative income poverty? • Being in relative income poverty means living in a household where the total household income from all sources is less than 60 per cent of the average UK household income (as given by the median). • Relative income poverty is a measure of income inequality, it is not a direct measure of living standards. If all households had very similar levels of income the percentage of people in relative income poverty would be very low, even zero. • It is also worth bearing in mind . . . – Household incomes for Wales are compared against the UK average household income, not the average household income in Wales. – The data is not adjusted for different costs of living in different areas of the UK apart from the removal of housing costs. – The data for countries and regions can be volatile due to small sample sizes and so care should be taken when interpreting figures.
  3. 3. Nearly 1 quarter of all people in Wales were living in relative income poverty after paying their housing costs • Overall, after paying housing costs such as mortgage interest payments/rent, water rates and structural house insurance: 24 per cent of all people in Wales were living in relative income poverty between 2015-16 and 2017-18 (an average over three financial years). • The latest figure is the same as last year’s figure but is up slightly on the 23 per cent reported in the previous 5 time periods. However there has not been much change in overall relative income poverty since the time period ending 2003-04. • This percentage has also been steady for all other UK countries in recent years; however their rates have been lower than for Wales. The most recent figure for England is 22 per cent and for Scotland, 20 per cent. Northern Ireland is the only UK nation to have seen a drop in this figure this year; the figure for Northern Ireland has dropped from 20 per cent in the last time period to 18 per cent in the most recent period.
  4. 4. 0 5 10 15 20 25 30 1995 to 1998 1997 to 2000 1999 to 2002 2001 to 2004 2003 to 2006 2005 to 2008 2007 to 2010 2009 to 2012 2011 to 2014 2013 to 2016 2015 to 2018 Wales Scotland England Northern Ireland Percentage of people in each UK country who were living in relative income poverty (after housing costs), three-financial-year averages Note: There is no data available for Northern Ireland before the 2002 to 2005 period. Note: The years represented are financial years – e.g. the most recent period is the 2015-16 financial year to the 2017-18 financial year Source: Households Below Average Income, Department for Work and Pensions %
  5. 5. Relative income poverty Headline figures: age groups
  6. 6. Percentage of each age group in Wales who were living in relative income poverty (after housing costs), three-financial-year averages Source: HBAI, Family Resources Survey, DWP % Note: The years represented are financial years – e.g. the most recent period is the 2015-16 financial year to the 2017-18 financial year Source: Households Below Average Income, Department for Work and Pensions 0 5 10 15 20 25 30 35 40 1995 to 1998 1996 to 1999 1997 to 2000 1998 to 2001 1999 to 2002 2000 to 2003 2001 to 2004 2002 to 2005 2003 to 2006 2004 to 2007 2005 to 2008 2006 to 2009 2007 to 2010 2008 to 2011 2009 to 2012 2010 to 2013 2011 to 2014 2012 to 2015 2013 to 2016 2014 to 2017 2015 to 2018 All individuals Children Working-age adults Pensioners
  7. 7. Children are the age group most likely to be in relative income poverty • The most recent figures show that 29 per cent of children in Wales were living in relative income poverty between 2015-16 and 2017-18 (after housing costs were paid). • This is an increase from the 28 per cent reported last year and is only the third time this figure has been below 30 per cent since the period ending 2005-06. • A possible reason for children consistently being the age group most likely to be in relative income poverty is that adults with children are more likely to be out of work or in low paid work due to childcare responsibilities. • The figure for England has increased from the 30 per cent reported last year to 31 per cent this year. The figures for Scotland and Northern Ireland are lower, both standing at 24 per cent.
  8. 8. Relative income poverty for working-age adults remains steady in Wales but is still above that seen for other UK countries • The figures for working-age adults in relative income poverty have been quite steady in recent years for all UK countries. • However Wales tends to have a higher percentage of working-age adults living in relative income poverty than the other UK countries. • Between 2015-16 and 2017-18, 23 per cent of working-age adults in Wales were living in relative income poverty (after housing costs were paid). This is a decrease from the 24 per cent reported last year. • The figure for England (21 per cent) has not changed from that reported last year. In Scotland the figure has increased from 19 per cent reported last year to 20 per cent. • In Northern Ireland the figure has decreased from the 19 per cent reported last year to 17 per cent this year. The figure in Northern Ireland has decreased for the last three consecutive periods.
  9. 9. The percentage of pensioners in relative income poverty has been rising but it’s still below the rate seen in the mid to late 1990s • After paying housing costs, 19 per cent of pensioners in Wales were living in relative income poverty between 2015-16 and 2017-18, compared with 20 per cent between 2014-15 and 2016-17. This remains higher than the figures seen from the period ending 2005-06 to the period ending 2015-16 but lower than those seen in the mid to late 1990’s. • Between 2015-16 and 2017-18, the corresponding figure was 16 per cent for England, 15 per cent for Scotland and 13 per cent for Northern Ireland. The figures for Wales have been slightly higher than that seen for the other UK countries since the period ending 2014-15.

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