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Poverty rose by 900,000 in coalition's first year
Official DWP figures include 300,000 more children, as charities point out that the entire increase came from working households
Patrick Butler, social policy editor
guardian.co.uk, Thursday 13 June 2013 16.10 BST
Poverty rose by 900,000 in coalition's first year
Official DWP figures include 300,000 more children, as charities point out that the entire increase came from working households
Iain Duncan Smith, the work and pensions secretary
Iain Duncan Smith, the work and pensions secretary, said: 'While this government is committed to eradicating child poverty, we want to take a new approach by finding the source of the problem and tackling that.' Photograph: Andrew Yates/AFP/Getty Images
An additional 900,000 people were plunged into poverty during the first year of the coalition government, including 300,000 more children, according to official figures.
Charities pointed out that the entire increase in children counted as in poverty in 2011-12 came from working households. Children living below the poverty line were now twice as likely to come from working families than those without employment.
The situation is likely to get worse, say charities, because the statistics covered the period before a range of austerity measures and welfare cuts – including the bedroom tax and the abolition of council tax benefit – were introduced.
Oxfam's Katherine Trebeck said: "It is unacceptable that in the seventh richest country on the planet, we've seen the number of people living in poverty increase by nearly a million. With cuts to public services and social security in the pipeline, the number of people living on absolute low incomes will only increase over the years."
Alison Garnham, chief executive of Child Poverty Action Group, said: "Despite all the talk about 'scroungers' and generations of families never working, today's poverty figures expose comprehensively the myth that the main cause of poverty is people choosing not to work. The truth is that for a growing number of families, work isn't working. The promise that work would be a route out of poverty has not been kept as wages stagnate and spending cuts have hurt low-income working families."
The government has a legal responsibility to reduce relative child poverty to below 10% by 2020.
Some 2.3 million children (17%) were recorded as living in relative poverty in 2011-12, under the official measure of living in a household with less than 60% of median average disposable income. But using average household incomes from 2010-11, the figure rose by 300,000 to 2.6 million (20%).
Although the headline figure remained unchanged, this was because falling incomes throughout the country have dragged down the level at which "relative poverty" kicks in.
Similarly, the Department for Work and Pensions figures, published on Thursday, showed that 5.6 million working-age adults (unchanged from last year at 15%) and 1.9 million pensioners (down one percentage point to 16%) were in relative poverty, based on last year's average incomes. But using average disposable income from 2010-11 to calculate the level of relative poverty, the numbers were higher at 6.1 million working-age adults (up one point to 17%) and 2.1 million pensioners (unchanged at 18%).
The DWP said the number of children classed as living in absolute poverty increased by 300,000 last year, "due to incomes not increasing as fast as inflation, which was very high and is now coming down".
The work and pensions secretary, Iain Duncan Smith, highlighted figures in the statistics showing that the number of children in workless poor families has reduced by 100,000 over the past year – a two percentage point reduction – while relative poverty among pensioners fell by 100,000 and among disabled people by 100,000.
He said: "While this government is committed to eradicating child poverty, we want to take a new approach by finding the source of the problem and tackling that. We have successfully protected the poorest from falling behind and seen a reduction of 100,000 children in workless poor families. Our welfare reform programme will further increase work incentives."
If housing costs are taken into account, Thursday's statistics show higher levels of relative poverty, with 3.5 million children (27%) falling below the poverty line on 2011-12 incomes – unchanged on the year before. Measured against 2010-11 income levels, the number rose by 300,000 to 3.8 million (29%). Numbers of working-age adults living in relative poverty after housing costs are taken into account stood at 7.9 million (21%) and pensioners at 1.6 million (14%).
Barnardo's chief executive, Anne Marie Carrie, said: "This year many of these households will be pushed into financial chaos when the cap on benefits increases take effect, compromising the health and life chances of children as they are forced to grow up in poverty."
Matthew Reed, chief executive of the Children's Society, said: "It is shameful that, as one of the richest countries in the world, child poverty is being allowed to increase."
Official DWP figures include 300,000 more children, as charities point out that the entire increase came from working households
Patrick Butler, social policy editor
guardian.co.uk, Thursday 13 June 2013 16.10 BST
Poverty rose by 900,000 in coalition's first year
Official DWP figures include 300,000 more children, as charities point out that the entire increase came from working households
Iain Duncan Smith, the work and pensions secretary
Iain Duncan Smith, the work and pensions secretary, said: 'While this government is committed to eradicating child poverty, we want to take a new approach by finding the source of the problem and tackling that.' Photograph: Andrew Yates/AFP/Getty Images
An additional 900,000 people were plunged into poverty during the first year of the coalition government, including 300,000 more children, according to official figures.
Charities pointed out that the entire increase in children counted as in poverty in 2011-12 came from working households. Children living below the poverty line were now twice as likely to come from working families than those without employment.
The situation is likely to get worse, say charities, because the statistics covered the period before a range of austerity measures and welfare cuts – including the bedroom tax and the abolition of council tax benefit – were introduced.
Oxfam's Katherine Trebeck said: "It is unacceptable that in the seventh richest country on the planet, we've seen the number of people living in poverty increase by nearly a million. With cuts to public services and social security in the pipeline, the number of people living on absolute low incomes will only increase over the years."
Alison Garnham, chief executive of Child Poverty Action Group, said: "Despite all the talk about 'scroungers' and generations of families never working, today's poverty figures expose comprehensively the myth that the main cause of poverty is people choosing not to work. The truth is that for a growing number of families, work isn't working. The promise that work would be a route out of poverty has not been kept as wages stagnate and spending cuts have hurt low-income working families."
The government has a legal responsibility to reduce relative child poverty to below 10% by 2020.
Some 2.3 million children (17%) were recorded as living in relative poverty in 2011-12, under the official measure of living in a household with less than 60% of median average disposable income. But using average household incomes from 2010-11, the figure rose by 300,000 to 2.6 million (20%).
Although the headline figure remained unchanged, this was because falling incomes throughout the country have dragged down the level at which "relative poverty" kicks in.
Similarly, the Department for Work and Pensions figures, published on Thursday, showed that 5.6 million working-age adults (unchanged from last year at 15%) and 1.9 million pensioners (down one percentage point to 16%) were in relative poverty, based on last year's average incomes. But using average disposable income from 2010-11 to calculate the level of relative poverty, the numbers were higher at 6.1 million working-age adults (up one point to 17%) and 2.1 million pensioners (unchanged at 18%).
The DWP said the number of children classed as living in absolute poverty increased by 300,000 last year, "due to incomes not increasing as fast as inflation, which was very high and is now coming down".
The work and pensions secretary, Iain Duncan Smith, highlighted figures in the statistics showing that the number of children in workless poor families has reduced by 100,000 over the past year – a two percentage point reduction – while relative poverty among pensioners fell by 100,000 and among disabled people by 100,000.
He said: "While this government is committed to eradicating child poverty, we want to take a new approach by finding the source of the problem and tackling that. We have successfully protected the poorest from falling behind and seen a reduction of 100,000 children in workless poor families. Our welfare reform programme will further increase work incentives."
If housing costs are taken into account, Thursday's statistics show higher levels of relative poverty, with 3.5 million children (27%) falling below the poverty line on 2011-12 incomes – unchanged on the year before. Measured against 2010-11 income levels, the number rose by 300,000 to 3.8 million (29%). Numbers of working-age adults living in relative poverty after housing costs are taken into account stood at 7.9 million (21%) and pensioners at 1.6 million (14%).
Barnardo's chief executive, Anne Marie Carrie, said: "This year many of these households will be pushed into financial chaos when the cap on benefits increases take effect, compromising the health and life chances of children as they are forced to grow up in poverty."
Matthew Reed, chief executive of the Children's Society, said: "It is shameful that, as one of the richest countries in the world, child poverty is being allowed to increase."
