Housing crisis drives in-work poverty to record high
A total of 7.4 million people, including 2.6 million children, are in poverty despite being in a working family. This means that a record high of 55% of people in poverty are in working households, the study commissioned by the Joseph Rowntree Foundation found.
Since 2010/11, when the economic recovery began, in-work poverty has increased by 1.1 million people.
The rise is driven by the UK’s housing crisis, particularly high costs in the private rented sector, the report said.
The number of people living in poverty in the private rented sector has doubled in a decade, from 2.2 million people in 2004/5 to 4.5 million people today.
More than half of people in poverty in England live in London and southern England, and the capital has the highest poverty rate at 27%, 6% above the UK average.
“Families who are just about managing urgently need action to drive up real-term wages, provide more genuinely affordable homes and fill the gap caused by cuts to Universal Credit, which will cost a working family of four almost £1,000 per year,” said Helen Barnard, head of analysis at the Joseph Rowntree Foundation.