1. The Risk Factors of Severe Child Poverty in the UK Monica Magadi Department of Sociology School of Social Sciences City University, London

2. Despite recent decline in child poverty in the UK, children from the poorest families remain a legitimate concern Despite recent decline in child poverty in the UK, children from the poorest families remain a legitimate concern Vast array of research on child poverty in the UK, but little is known about the circumstances of children in severe poverty Vast array of research on child poverty in the UK, but little is known about the circumstances of children in severe poverty Why ‘severe’ child poverty?

3. Aims Establish the extent of severe child poverty in the UK Establish the extent of severe child poverty in the UK Examine characteristics of children experiencing severe childhood poverty and identify factors that place children at most risk of being severely poor Examine characteristics of children experiencing severe childhood poverty and identify factors that place children at most risk of being severely poor

4. Data and Methods Based on the 2004-05 Family Resources Survey Based on the 2004-05 Family Resources Survey A multi-dimensional measure A multi-dimensional measure Child deprivation Child deprivation Parent deprivation Parent deprivation Household income Household income

5. Adult Material Deprivation Items A holiday away from home for at least one week a year A holiday away from home for at least one week a year Friends or family around for a drink or meal at least once a month Friends or family around for a drink or meal at least once a month Two pairs of all weather shoes for all adults in the benefit unit Two pairs of all weather shoes for all adults in the benefit unit Enough money to keep your home in a decent state of decoration Enough money to keep your home in a decent state of decoration Household content insurance Household content insurance Make regular savings of £10 a month or more for rainy days or retirement Make regular savings of £10 a month or more for rainy days or retirement Replace any worn out furniture Replace any worn out furniture Replace or repair electrical goods such as refrigerator or washing machine when broken Replace or repair electrical goods such as refrigerator or washing machine when broken Have a small amount of money to spend each week on yourself (not on your family) Have a small amount of money to spend each week on yourself (not on your family) Have a hobby or leisure activity Have a hobby or leisure activity

6. Child Material Deprivation Items A family holiday away from home for at least one week a year A family holiday away from home for at least one week a year Enough bedrooms for each child of 10 or over of a different sex to have their own bedroom Enough bedrooms for each child of 10 or over of a different sex to have their own bedroom Leisure equipment such as sports equipment or a bicycle Leisure equipment such as sports equipment or a bicycle Celebrations on special occasions such as birthdays, Christmas or other religious festivals Celebrations on special occasions such as birthdays, Christmas or other religious festivals Go swimming at least once a month Go swimming at least once a month Do a hobby or leisure activity Do a hobby or leisure activity Have friends around for tea or snacks at least once a fortnight Have friends around for tea or snacks at least once a fortnight Go to toddler group/nursery/playgroup at least once a week (for children under six not attending primary or private school Go to toddler group/nursery/playgroup at least once a week (for children under six not attending primary or private school Go on school trips (for those over six, or under six and attending primary or private school) Go on school trips (for those over six, or under six and attending primary or private school)

7. Material Deprivation Threshold Deprivation items in FRS represent a set of questions which best discriminates between poor and non-poor families Deprivation items in FRS represent a set of questions which best discriminates between poor and non-poor families ‘Enforced lack’ approach ‘Enforced lack’ approach Weighted approach based on principal components analysis Weighted approach based on principal components analysis Bottom quintile considered deprived Bottom quintile considered deprived Severe deprivation – deprived of both adult and child necessities (11%) Severe deprivation – deprived of both adult and child necessities (11%) Non-severe deprivation – deprived of either adult or child necessities (16%) Non-severe deprivation – deprived of either adult or child necessities (16%) Not deprived (73%) Not deprived (73%)

8. Low Income Threshold Household income, equivalised based on the modified OECD equivalence scale Household income, equivalised based on the modified OECD equivalence scale Income based on ‘after housing cost’ measure Income based on ‘after housing cost’ measure Income poverty measurement based on relative poverty lines Income poverty measurement based on relative poverty lines Severe income poverty (‘poorest poor’)– bottom half of those classified as being in poverty based on conventional 60% of median threshold (12% of children) Severe income poverty (‘poorest poor’)– bottom half of those classified as being in poverty based on conventional 60% of median threshold (12% of children) Non-severe poverty – below 70% of median income (15%) Non-severe poverty – below 70% of median income (15%) Not poor – above 70% of median income (73%) Not poor – above 70% of median income (73%)

9. Severe Child Poverty Definition Children are classified as being in ‘severe’ poverty if they are in households with very low income (i.e. ‘poorest poor’) in combination with ‘severe’ material deprivation (i.e in the bottom quintile with respect to both adult-related and child-related necessities). Those in households below 70 per cent of median income, in combination with either severe or non-severe deprivation are classified as being in non-severe poverty. The remaining are classified as not being in poverty.

10. Poverty permutation and mean income Poverty permutationMean income for a one- child couple family (£)* Per cent of children Not in poverty - neither income poor nor deprived - not income poor, some material deprivation - income poor, no material deprivation 426 514 377 160 78.3 52.0 11.3 15.0 Non-severe poverty - non-severe income poverty and deprivation - income poverty and deprivation, one of which is severe 193 211 179 17.7 7.6 10.1 Severe poverty (severe income poverty and deprivation) 1124.0 Base Population: All children (n=16012) in 2004-5 FRS

11. What do families of children in severe poverty go without? ItemNot in poverty Non- severe poverty Severe poverty A holiday away from home once a year (adults) A holiday away from home once a year (children) Make regular savings of at least £10 a month Small amount of money to spend on self per week Replace any worn out furniture Replace or repair broken down electrical goods Household content insurance Keep home in a decent state of decoration Friends/family around for a drink/meal once a month Leisure equipment e.g for sports or a bicycle A hobby or leisure activity Go swimming at least once a month Have friends for snacks at least once a fortnight Enough bedrooms for each child aged 10+ of diff. sex 25.8 19.4 29.2 21.5 18.8 10.5 7.0 9.9 8.8 2.8 10.5 4.3 3.0 10.9 82.6 74.8 83.4 75.6 76.2 63.8 56.2 50.1 42.8 22.2 47.0 31.1 22.9 35.7 95.7 91.7 89.2 88.5 86.3 77.8 76.0 68.4 67.5 61.7 58.6 56.8 56.1 52.0 Base Population: All children (n=16012) in 2004-5 FRS

12. Regional Variations of Severe Child Poverty in the UK

13. Severe Child Poverty Status by Economic Activity of Parents Base Population: All children in 2004-5 FRS. Column per cent Economic Activity of Parents Severe Child Poverty Status All children Not in poverty Non-severe poverty Severe poverty One or more self employed 156413 Full-time work (lone or both) 214117 One FT, one PT (couple) 284123 One FT, one no work (couple) 1913918 Only PT work (lone or both) 10161611 Workless parent(s) 8576919 Unweighted cases 12394297963916012

14. Severe Child Poverty Status by Benefit Receipt Base Population: All children in 2004-5 FRS. Column per cent Benefit /tax credit receipt of family Severe child poverty status All children Not in poverty Non- severe poverty Severe poverty Disability Living Allowance (DLA) 6837 Jobseeker’s Allowance (JSA) 1572 Incapacity Benefit (IB) 3774 Income Support (IS) 6514515 Working Tax Credit (WTC) 15191115 Child Tax Credit (CTC) 64877569 None of the above benefits/tax credits 3482129 Unweighted cases 12394297963916012

15. Severe Child Poverty Status by Family Type and Size Base Population: All children in 2004-5 FRS. Column per cent Family composition Severe child poverty status All children Not in poverty Non-severe poverty Severe poverty Family type - lone parent - couple parents 1783524847532575 Family size - one child - two children - three children - four or more children 2547208223624182634202025442110 Unweighted cases 12394297963916012

16. Severe Child Poverty Status by Ethnicity Base Population: All children in 2004-5 FRS. Column per cent Ethnic background of household head Severe child poverty status All children Not in poverty Non-severe poverty Severe poverty White91826388 Mixed /Chinese /other 2493 Asian and Asian British 510206 Black and Black British 2583 Unweighted cases 12394297963916012

17. High Risk of Severe Poverty Among Children: living in London, Wales and the Midlands ; living in London, Wales and the Midlands ; with workless parents; with workless parents; whose parents have low educational qualifications; whose parents have low educational qualifications; living in rented accommodation; living in rented accommodation; whose parents have no savings/assets; whose parents have no savings/assets; in large families of four or more children; in large families of four or more children; from ethnic minority groups, especially of Asian origin; and from ethnic minority groups, especially of Asian origin; and in families with disabled adult(s). in families with disabled adult(s).

18. Selected risk factors of severe and non-severe child poverty, relative to not being in poverty FactorNon-severe poverty Severe poverty Economic activity of parents (workless) - Self employed - couple or single, part-time work (no FT) - Couple or single, all in full-time work 0.34* 0.60* 0.15* 0.06* 0.01* 0.29* Mother’s educational qualification (degree) - No qualification - non-degree qualification 3.45* 2.54* 6.27* 4.00* Benefit receipt (no receipt) - Jobseeker’s Allowance - Incapacity Benefit - Income Support - Child Tax Credit 2.65* 1.36* 2.84* 1.29* 0.81 0.75 0.54* 0.80 Ethnic Group (White) -Asian -Black -Mixed /other 2.39* 1.33 1.40* 6.08* 2.51* 2.82*

19. Interesting Patterns Non-receipt of benefits generally associated with a higher risk of severe child poverty Non-receipt of benefits generally associated with a higher risk of severe child poverty Benefit take-up possibly an issue for families experiencing severe child poverty. Benefit take-up possibly an issue for families experiencing severe child poverty. Lone parents associated with lower risk of severe poverty but higher risk of non-severe poverty than couple parents. Lone parents associated with lower risk of severe poverty but higher risk of non-severe poverty than couple parents.