07 May 2009 – Government response to households below average income figures
The latest Households Below Average Income figures were published today. The statistics cover the UK income distribution in 2007/08, including the latest figures for the number and percentage of children, pensioners and working-age people in the UK living in relative and absolute poverty.
Today’s figures show:
- In 2007/08 2.5 million pensioners living in relative poverty Before Housing Costs (BHC) and 2.0 million After Housing Costs (AHC) which represents no change on 2006/07.
- Between 1998/99 and 2006/07 the number of pensioners in relative poverty has fallen by 200,000 BHC and 900,000 AHC.
- In 2007/08 2.9 million children living in relative poverty BHC and 4.0 million AHC. Compared to 2006/07 this represents no BHC change and a rise of 0.1 million AHC.
- Between 1998/99 and 2007/08 the number of children in relative poverty has fallen by 500,000 BHC and 400,000 AHC.
- In 2007/08 5.6 million working age adults living in relative poverty BHC and 7.5 million AHC. Compared to 2006/07 this represents an increase of 200,000 in both BHC and AHC.
- Between 1998/99 and 2007/08 the number of working age people in poverty has risen 0.6 million BHC and 0.8 million AHC.
The figures show that following an increase the previous year pensioner poverty has stayed at the same level. Child poverty too has stayed at the same level after increases in the last two years. The rise in working age poverty is due partly to an increase in the working population.
Pensions Minister Rt Hon Rosie Winterton MP said:
“The Government is continuing to provide real help to people through these difficult times and that is why we have continued to commit extra resources directly to help the most vulnerable groups in society. Since 2000, income inequality and poverty have fallen faster in the United Kingdom than in any other OECD country. For the first time since the 1980s, the UK poverty level is well below the OECD average."
“We’ve lifted 900,000 pensioners out of poverty and as an EU Commission report showed, the income of the UK’s pensioners has increased significantly over the last decade. In 1997 UK pensioner income was well below the European average. Today their income is 9% higher than the EU average. Even the poorest pensioners in the UK are better off than the poorest pensioners in France or Germany.
“This April saw the biggest increase in the State Pension since 2001, the largest ever increase in Pension Credit, and the Budget announced there will be an increase in the savings disregard element of Pension Credit, which will make a very real difference to the lives of pensioners across the UK.
“This year we also gave extra money to pensioners through the Winter Fuel Payments, we tripled Cold Weather Payments to £25 and gave an additional £60 Christmas Bonus to help them with rising fuel and food costs over the winter.”
Children’s Minister Beverley Hughes said:
“We knew from the disappointing figures in 2006/07 that we were unlikely to see reductions in the child poverty figures for 07/08, but I’m pleased the child poverty rates have remained broadly stable, as the figures published today reveal. In Budget 2007 and since, we took strong pre-emptive actions to put reductions in Child Poverty rates back on track, and we expect the benefits of those measures to show first in 08/09 and 09/10. We estimate these measures will lift around 500,000 children out of poverty.
“The Government is committed to supporting families and we are equally committed to ensuring every child, whatever their background, has the best possible start in life. Our determination to end child poverty by 2020 is as strong as ever and we are legislating to enforce that commitment. The ground-breaking Child Poverty Bill will be published later this month.“
Financial Secretary to the Treasury Stephen Timms said:
"Since 1997, the Government has made great progress by making work pay and reducing poverty through the introduction of tax credits and the National Minimum Wage. The steps the Government has taken to support the economy right now will help families and individuals, including a temporary cut in VAT worth over £20 a month on average for a household and an increase to the personal allowance worth £145 this year for 22m basic rate taxpayers for example."
Note to Editors
- The latest figures on child, pensioner and working-age adult poverty can be found in Households Below Average Income (HBAI) 2007/08. HBAI figures can be downloaded from http://research.dwp.gov.uk/asd/hbai.asp along with a statistical press notice.
- From 1998/9 – 2007/8 the number of children in relative poverty fell by 500,000, before housing costs are taken into account.
- From 1998/9 – 2007/8 the number of children in absolute poverty fell by 1.7 million, before housing costs are taken into account.
- From 1998/9 – 2007/8 the number of pensioners in relative poverty fell by 900,000, after housing costs are taken into account.
- From 1998/9 – 2007/8 the number of pensioners in absolute poverty fell by 1.9 million, after housing costs are taken into account.
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