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Updated
Number of people in poverty fell during first year of pandemic, DWP figures show
The number of people in the UK living in poverty fell during the first year of the coronavirus pandemic, according to new figures, PA Media reports. PA says:
A total of 13.4 million individuals were estimated to be in relative low income – below 60% of average household income - in the year to March 2021.
This was down from a record high of 14.5 million the previous year, but higher than the equivalent figure of 13 million a decade earlier in 2010-11.
The number of children living in poverty also fell in 2020-21, down year-on-year from 4.3 million to 3.9 million, meaning some 400,000 children were pulled out of poverty.
The figures, published by the Department for Work and Pensions, show that average household income fell during the first year of the pandemic, from £478 a week in 2019-20 to £472 in 2020-21, after housing costs.
But poorer households actually saw their incomes rise, from £192 a week to £200.
Commenting on the figures, Jonathan Cribb and Thomas Wernham from the Institute for Fiscal Studies (IFS) said:
This is almost certainly driven by the substantial increases in the generosity of universal credit and other benefits that poorer households are particularly reliant upon for their incomes.
This growth comes in stark contrast to the very low income growth for poor households in prior years - which averaged only 0.5% between 2011 and 2019.
However, with the end of the temporary uplift to Universal Credit in autumn of 2021, and rising inflation meaning benefits are not keeping up with inflation currently, the prospects for lower income households in 2021-22 and 2022-23 are much bleaker.
And Alison Garnham, chief executive of the Child Poverty Action Group, said:
Today’s figures show that government has the power to protect children from poverty.
But in a week when the chancellor made clear he was comfortable with his choices and the prime minister claimed child poverty had been left out of his plan for the country ‘by accident’ it looks like ministers have turned their backs on low-income families.
Many of the children who were lifted out of poverty by the £20 increase to universal credit have already been forced back over the brink by the government’s actions.
And as millions struggle with spiralling costs, we know the picture will worsen.
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