A report, What happened to poverty under the Coalition?,by the New Policy Institute has found-
The median household income slightly increased in 2013/14 and 2014/15, following three years of falls. But at the bottom of the distribution incomes have continued to fall.
Over the last two years the total number of people in poverty in the UK has increased by 800,000, from 13.2 to 14.0 million. This represents a 1 percentage point increase in the poverty rate, from 21% to 22%. Deep poverty also increased by 1 percentage point to 15%, with 700,000 more people in deep poverty rising from 8.9 to 9.6 million people.
Regardless of age, poverty rose over the two years to April 2015. The rise was highest for children with the poverty rate increasing by 2 percentage points to 29%. It rose very slightly among working age adults to 22% and among pensioners to 14%. The rise in pensioner poverty follows 6 years of falls.
The number in poverty in working families is up by 300,000 since 2012/13, while the number in workless families is up by 400,000. The increase in out-of- work poverty was concentrated in 2013/14 and is likely to be the result of the tax and benefit changes that were introduced in April 2013 (discussed below). The rise in working families in poverty is due to the increase in employment overall as the poverty rate for this group remains unchanged.
Poverty in the social rented sector (SRS) grew by 400,000, with the bulk of that change coming in 2013/14 which again is likely to refect tax and benefit changes in that year. In the past decade, poverty in the SRS has fallen considerably. Poverty in the private rented sector (PRS) also grew by 350,000, a continuation of a long-term trend refecting the growth of the tenure.
Click here for our updated Introduction to Welfare Benefits 2015 course.