Poverty among working families with children is increasing despite earnings rising at the bottom. It’s not right that so many people in work are struggling to make ends meet. Why is it happening, and what would help? www.jrf.org.uk/blog/tuesdays-spring-statement-opportunity-right-wrong-work-poverty

1. Poverty among working families
with children is increasing despite
earnings rising at the bottom
It’s not right that so many people in work
are struggling to make ends meet.
Why is it happening, and what would help?
Low-income working families:
an economic update
@jrf_uk

2. Incomes are growing more slowly at the bottom
compared to the average, locking families in poverty
Measure: Real terms median weekly income (AHC) by equivalised income quintiles.
Source: JRF Analysis Unit

3. Source: JRF Analysis Unit
Data source: Office for National Statistics and Institute for Fiscal Studies
Real prices adjusted to 1st April 2016. Calculations based on changes to Working and Child Tax credits.
Earnings have increased at the bottom, but changes to tax credits
have pulled many low income families in the other direction.
Comparing of 2016/17 to 2010/11, for families on 2016/17 NLW (£7.20)
and equivalent earnings in 2010/11

4. Those at the bottom are also hit harder by
price rises for essential goods such as food
Source: Table 3.2E Living Costs and Food Survey 2014

5. As a result, poverty among working families with children
has increased
Source: Households Below Average Income (JRF Analysis)

6. Universal Credit is an opportunity to release families
from the grip of poverty
Source: IPPR Tax Benefit Model

7. Cancelling further increases to the income tax personal allowance
would help pay for restoring the Work Allowances and
target help where it is needed.
Source: JRF Briefing for November 2017 Budget: Keeping more of what you earn.

8. #makeworkpay
@jrf_uk