One in six working households facing poverty

Poverty rates among working households have hit a record high, according to a new report.

The report – No Longer Managing – by the think tank IPPR warns working poverty rates among families with three or more children have reached 42%, up more than two thirds over the past decade.

The figures also show that working poverty rates have risen across the entire country but are highest in London, Wales and the north of England.

Families of all sizes have been affected, with single parents, couples with a single earner and large families affected worst.

According to the report, families where one partner works full-time and one works part-time are increasingly being pulled into poverty, a significant shift.

For people in this group, the chances of being pulled into poverty have doubled over the past two decades, from one in 20 to one in 10.

Even for households with two people in full-time work, the chances of being pulled into poverty have more than doubled over the same period, rising from 1.4% to 3.9%.

Couple households with one full-time earner now have a poverty rate of 31%, almost as high as working households where nobody works full time.

‘These shocking new figures should be a wake-up call for everyone concerned about our future,’ said IPPR associate director, Clare McNeil.

‘The UK economy’s dependence on ever-rising house prices, and the lack of affordable housing, have trapped us in a vicious circle which, unless broken, will condemn us either to a constantly rising social security bill, or to ever-increasing poverty among working households.’

The Bishop of Dover, the Rt Revd Rose Hudson-Wilkin, added: ‘Providing a home and building a future for your family is something we all strive for and this report shows that one in six households are trying as hard as they can but still finding it impossible to feed their families and provide a safe roof over their heads.

‘The gulf between the rich and the poor is growing, as the pandemic showed us all too clearly. We must do more as a country to ensure that the resources we have been blessed with are shared more equally – now, and in the future.’