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RESTRICTED: STATISTICS Households Below Average Income 2008/09 Peter Matejic (DWP)

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Presentation on theme: "RESTRICTED: STATISTICS Households Below Average Income 2008/09 Peter Matejic (DWP)"— Presentation transcript:

1 RESTRICTED: STATISTICS Households Below Average Income 2008/09 Peter Matejic (DWP)

2 RESTRICTED: STATISTICS 2 HBAI Publication Private households in United Kingdom Main source – DWP Family Resources Survey Measurement of living standards as determined by the net disposable income, including poverty statistics Incomes equivalised and analysed Before and After Housing Costs (BHC and AHC) Figures are rounded to the nearest 100,000 or percentage point meaning figures may not sum exactly due to rounding

3 RESTRICTED: STATISTICS 3 Summary of presentation content Low-income indicators, including low-income, low income and material deprivation and persistent low income Changes since 1998/99 Changes since 2007/08 Low-income population characteristics Income distribution Income growth Persistent poverty

4 RESTRICTED: STATISTICS 4 Relative and Absolute low-income indicators Relative incomes are assessed against the median of the year in question The indicator falls if the income of poorer households rises faster than the population as a whole Absolute incomes are assessed against the median in 1998/99 adjusted for inflation The indicator falls if poorer households are seeing their income rise in real terms Low income and material deprivation indicator is combination of ­ Low-income threshold of 70 per cent below median income (BHC) ­ Material deprivation measure

5 RESTRICTED: STATISTICS 5 Number of children in low-income households

6 RESTRICTED: STATISTICS 6 Number of pensioners in low-income households

7 RESTRICTED: STATISTICS 7 Number of working-age adults in low-income households

8 RESTRICTED: STATISTICS 8 More likely to be in low-income households Working-age adults in workless households Lone parent families Non-white ethnic groups Families containing someone with a disability not in receipt of disability benefits Those in rented accommodation Groups with no savings or who have bills in arrears Working age adults with no qualifications Older pensioners

9 RESTRICTED: STATISTICS 9 Percentage of children in low-income by region/country, three-year average

10 RESTRICTED: STATISTICS 10 Percentage of pensioners in low-income by region/country, three-year average

11 RESTRICTED: STATISTICS 11 The income distribution in 2008/09 (BHC)

12 RESTRICTED: STATISTICS 12 Average annual real income growth 1998/ /09

13 RESTRICTED: STATISTICS 13 Persistent poverty Looks at the same individuals over time An individual is in persistent low income if they have been in low income for three or more of the last four years Uses a relative 60 per cent of median income definition of low income Uses the British Household Panel Survey, funded by the Economic and Social Research Council. Latest data relates to autumn / winter 2007

14 RESTRICTED: STATISTICS 14 Persistent poverty levels

15 RESTRICTED: STATISTICS 15 Summary Low-income indicators 1998/ /09 ­Numbers of children and pensioners in low income have fallen but working-age has increased Low-income indicators 2007/ /09 ­ Numbers of children in low income has fallen slightly ­ Numbers of working age adults in low income increased ­ Numbers of pensioners in low income decreased ­ Numbers of children in low income and material deprivation stayed at same level Income growth 1998/ /09 ­ Growth across all groups ­ 2 nd quintile has shown biggest average annual rise Income growth 2007/ /09 ­No consistent pattern BHC and AHC Persistent poverty to ­Reduction in persistent poverty for pensioners, flat for children and working-age adults ­Large reductions since

16 RESTRICTED: STATISTICS 16

17 RESTRICTED: STATISTICS 17 Rounding – an example To ensure that the figures produced from the survey can provide reliable estimates, we round the figures to the nearest 100,000 This can mean that figures may not sum due to this rounding. ­If poverty levels amongst a certain group changed from 1.64 to 1.57 million, the rounded levels of poverty would be 1.6 million in both years as both levels round to this, but the unrounded difference would be 0.07 million which would be rounded to 0.1 million ­If the statistics changed from 1.66 to 1.64, the rounded levels of poverty would be 1.7 million in the first year and 1.6 in the second year because of rounding, but the unrounded difference would be 0.02 million which would be rounded to no change Only rounding figures at the final point of calculation of a statistic produces the best estimate

18 RESTRICTED: STATISTICS 18 Percentage of working-age adults in low- income by region/country, three-year average


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